Top Things You Can Do Around DeFi with the Most Popular BTC Token

Let’s say you’re a longtime Bitcoiner with some BTC laying around that you’d be willing to experiment with.

‘If that sounds like you, then maybe you’ve also heard about Ethereum’s rising decentralized finance ecosystem and how you can put your BTC to work in DeFi in various ways, though you don’t know where to start.

If you fit the bill here, then look no further. Here’s a brief primer on Ethereum’s most popular BTC token to date, the BitGo-backed WBTC project, and a range of ways you can put this token to productive use around DeFi.

The ERC-20 BTC Boom Has Begun

As the leading smart contract platform, Ethereum is great for tokenizing just about anything. That said, Ethereum’s ERC-20 token standard can be used to easily represent and make tradable atop Ethereum assets that are otherwise external to Ethereum, like bitcoin.

As such, we’ve seen a tokenization boom around BTC over the course of 2020 as Bitcoin and Ethereum have shined amid the cryptoeconomy turning decisively bullish for the first time in years.

For instance, according to the tracker site btconethereum.com there are currently +145,000 BTC tokenized on Ethereum, of which the vast majority — over 117,000 right now — are tokenized through the WBTC project.

To put WBTC’s rapid growth this year into perspective, check out the graph below and note how WBTC only surpassed its 20,000th unit milestone in August. That means the number of WBTC that have been minted has surged some 500% in just a matter of weeks!

Image via btconethereum.com

And this flurry of activity is overwhelmingly circling around one thing, currently: Ethereum DeFi.

DeFi: the New Frontier

The DeFi ecosystem offers new ways of participating in finance, and all in decentralized fashion. These realities have made Defi catch fire within the wide cryptoeconomy this year.

Indeed, back in January DeFi projects had less than $1 billion worth of assets under management. Today and not even one full year later, the space is just shy…

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