Bitcoin on Ethereum: BTC on Defi with WBTC, HBTC, renBTC, sBTC, imBTC, TBTC, pBTC, oBTC

Wrapped tokens follow the centralized model, but instead of relying entirely on one institution, they rely on a consortium of institutions performing different roles in the network. Tokenization is desirable as it increases the speed of transactions, reduces the number of intermediaries, enhances security, usability, and improves transparency.

Community Reaction:

A hybrid of the 2 most important Coins in Crypto sounds very promising.

Bitcoin defi will give more liquidity and users over eth defi.

It would serve to enable more usability for the 2 leading cryptocurrencies no matter whichever side of the divide one belongs.

Tokenized BTC will work with smart contracts, seamlessly integrate into decentralized transaction, you can inject liquidity into the ETH ecosystem. Programmable & seamless interact with smart contracts, DeFi, staking etc.

Bitcoin is highly useful in the Ethereum ecosystem, but not so much the other way around. That’s because Bitcoin is the best money and Ethereum has the best DeFi and NFT apparatuses.

BTC getting tokenized on to the Ethereum blockchain happens in a variety of ways.  However, when this happens there are different levels of tradeoffs, which consists of different levels of decentralization and assumptions about trust.

To name a few they are:  WBTC, HBTC, renBTC, sBTC, imBTC, TBTC, pBTC, oBTC and others.

WBTC: Wrapped BTC (WBTC) is an ERC-20 token issued by Bitcoin (BTC).  WBTC is fully accounted for and proof of reserves will be posted on the BTC chain.  There is no transfer fee other than blockchain fees.  WBTC focuses on federated governance model and it focuses mainly on promoting usability.

HBTC: Huobi BTC tokens is a bridge between centralized and Defi Markets.  Huobi Global launched HBTC, an Ethereum based token which can be 1:1 exchanged for BTC. This token is used to seamlessly access decentralized protocols on Uniswap, Curve, Balancer, Nest, and ForTube.

H-Tokens project provide for efficient financial services by injecting highly liquid bitcoin assets into the Ethereum DeFi to connect the central market with the DeFi market, thus reducing the cost of DeFi users.

renBTC: Is an open and community-driven protocol which enables the movement of value between blockchains. Users can integrate Ren with Dapp.  Use Ren to Wrap tokens.  Integrators have made it possible for dozens of leading Web3 applications to unlock a native cross-chain user experience using Ren.

sBTC: Is a synthetic Bitcoin token which is enabled by Synthetix Protocol.  The price of BTC is tracked by using the oracle provided by Chainlink.

imBTC:  Is an Ethereum token pegged 1:1 to BTC, that you can freely mint, exchange, redeem.  ImBTC is able to work with smart contracts, seamlessly integrate into decentralized transactions and financial services, while injecting liquidity into the Ethereum ecosystem.

TBTC:   is a Bitcoin-backed token pegged to the price of bitcoin. It allows holders to use bitcoin on the Ethereum blockchain and access the decentralized finance (DeFi) ecosystem. A user can obtain tBTC by depositing BTC into a specific wallet through the tBTC Decentralized App (dapp) within the Bitcoin blockchain.

pBTC:  pBTC is an ERC-20 token representation of bitcoin. It is pegged 1:1 so its value is intrinsically linked to that of bitcoin’s. Holders will be able to lock their BTC and instantly mint new pBTC, maintain their stake in bitcoin, while also making their coins completely useable in the Ethereum ecosystem.

oBTC: The oToken minted by BoringDAO is an ERC-20 token backed by BTC and thus is named “Boring BTC”, abbreviated as oBTC. The marketing prices of these oBTC reflects the values of Bitcoin backing them.

“Ultimately, all interest has to fit into 21 million BTC, so the price will have to accommodate.”