$165 Million Bitcoin Moved to Ethereum after Uniswap’s UNI Token Launch

Key Takeaways

  • Over 15,000 WBTC was minted since Sept. 17 prompted by UNI token yield farming incentives on Uniswap.
  • The comparative returns for Bitcoin-based pools are higher than Ethereum and Chainlink on DeFi platforms like yEarn Finance.
  • Curve added a new HBTC pool alongside the existing BTC-based pool backed by RenBTC, wBTC and sBTC.

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WBTC (Wrapped Bitcoin) added 15,000 tokens 24 hours after UNI token launch, taking the amount Bitcoin locked in DeFi to $1.2 billion. High returns on Bitcoin-specific pools is another impetus for the mass move.

The Uniswap Effect 

Wrapped Bitcoin is tokenized BTC issued on Ethereum. Launched in January 2019, WBTC had a relatively slow growth until the explosion of DeFi’s yield farming. WBTC has surpassed $800 million in locked value, adding Bitcoins worth $500 million since August. 

TVL of Wrapped Bitcoin
Total Value Locked in WBTC Source: DefiPulse

Uniswap is the leading decentralized exchange (DEX), which is leaving centralized exchanges like Coinbase behind.

The WBTC-ETH pool on Uniswap has become a significant source of attraction as it is one of four pools on Uniswap with added UNI token incentives.

Currently, the WBTC-ETH pool is the largest pool on Uniswap in total liquidity at $391 million. This amounts to a staggering 900% increase since Sept. 17. The relative volume of other WBTC pools on Uniswap paints a clear picture of the source of the demand. 

SIMETRI gains of 1031%

While the WBTC-ETH pool 24-hour volume is close to $40 million, it is zero for the other WBTC pools. 

Wrapped Bitcoin on Uniswap
WBTC Liquidity on Uniswap Source: Uniswap Info

New UNI-incentivized pools will not be added for the next 30 days within the governance grace period. This indicates that the expansion of the pool is likely to continue. 

The other pools which qualified for yield farming UNI include DAI-ETH, USDT-ETH, USDC-ETH. These pools expanded by 880%, 136%, and 142%, respectively, since the announcement. 

Bitcoin on Ethereum 

The total value of BTC locked in smart contracts…

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