Midas.Investments is delighted to add another major project to our platform. Wrapped Bitcoin (WBTC) is now listed on the Midas platform, joining the list of 15+ supported cryptocurrencies.
Rates offered to investors: 6.6% APR, 6.8% APY and 8.5 Boosted APY (similar to BTC).
The listing of WBTC by Midas gives investors the flexibility to deposit BTC or WBTC based on their preference. Furthermore, it simplifies the asset flow for the Midas team. That is because when a user deposits BTC, it is swapped to WBTC for the investment team. However, with WBTC supported now, this extra process can be eliminated.
What is Wrapped Bitcoin (WBTC)?
Wrapped Bitcoin (WBTC) is an ERC-20 token that represents Bitcoin (BTC) on the Ethereum blockchain. WBTC makes it possible for individuals to use BTC within Ethereum’s DeFi ecosystem, which includes a wide list of wallets, decentralized apps (dapps), and smart contracts.
One WBTC equals one BTC in terms of value. Using a WBTC partner, a BTC can be converted into a WBTC and vice-versa. Being an ERC-20 token makes the transfer of WBTC faster than normal Bitcoin, but the key advantage of WBTC is that it allows users to interact with a variety of Ethereum products.
Launched in January 2019, the WBTC token was created as a way to bring the liquidity of the world’s largest cryptocurrency to the DeFi ecosystem. As of now, a major use case for WBTC is as collateral against loans on DeFi platforms. Upon repayment of the crypto borrowed, the collateral, which is in the form of WBTC, will be returned.