In an effort to boost participation in the Decentralized Finance (DeFi) market, a leading blockchain-based operating system, TRON recently entered a new partnership to onboard Wrapped Bitcoin (WBTC) and Wrapped Ether (ETH) to its blockchain. This is quite an important news for the TRON community, given that WBTC is particularly a widely used Bitcoin token.
Compatible Wrapped Bitcoin and Ether on TRON DeFi
Per the announcement of Thursday, the Ethereum rival reached a strategic partnership with BitGo, a qualified digital currency custodian. Noteworthily, Wrapped Bitcoin is a joint initiative of BitGo, Ren (formerly Republic Protocol), Kyber Network, and others, although the project is now overseen by WBTC Decentralized Autonomous Organization (DAO). BitGo reportedly holds the cryptocurrency reserve when Bitcoin is wrapped.
So, the custodian will be holding the underlying cryptocurrencies, Bitcoin and Ether, allowing the TRON community to wrap the cryptos as TRC-20 tokens. These tokens can then be used compatibly on the TRON blockchain, unlocking more opportunities for the community members to participate in the now-booming decentralized finance market.
TRON builds Ethereum weak point
While commenting on the development, founder of TRON and CEO of BitTorrent, Justin Sun, said:
Everyone may now use their BTC/ETH to enjoy all the benefits of the TRON DeFi ecosystem without the high gas fees on Ethereum!. […] We are excited to expand TRON’s DeFi potential by partnering with the industry leader BitGo to bring integral cross-chain solutions such as
Wrapped Bitcoin (WBTC) and Wrapped Ether to TRON.
Among other things, cryptocurrency users on TRON blockchain can be able to borrow stablecoins, lend on decentralized exchanges (DEXs), and perform other activities within the TRON ecosystem, using the Wrapped Bitcoin and Ether. It is worth noting that this token will bear roughly the value of the Bitcoin or Ether deposited on BitGo in a 1:1 ratio.The announcement comes when the demand for Bitcoin token has risen across the DeFi market. There are now several Bitcoin tokens, including the recently relaunched tBTC. WBTC alone has more than $820 million worth of Bitcoin in custody.