A Bitcoin-Backed Stablecoin (WBTC) Has Launched on the Ethereum

mk4

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Quote from: squatter on January 31, 2019, 01:59:57 AM

It's the only way so far to trade "Bitcoin" on a DEX. It allows you to trade Ethereum assets against tokenized BTC using smart contracts. Obviously, this isn't fully decentralized since it requires third party custody from Bitgo, but it offers a hybrid model that's less risky than trading on fully centralized exchanges like Binance.

Still a hard pass for me personally. If I'm going to end up trusting a custodial service in the end anyway, then I'd personally just use a centralized exchange and simply immediately withdraw my funds after whatever exchange I'm planning on doing.

squatter

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STOP SNITCHIN'

Quote from: mk4 on January 30, 2019, 10:16:54 PM

Wouldn't you need to actually trust BitGo though? If so, that's a big no for me dawg.

For now(as I haven't done ample research yet), though it's quite interesting, I think it's very pointless. The only possible use-case for WBTC that I could think of right now is for multi-collateral DAI on the MakerDAO platform; beyond that, I really don't know.

It's the only way so far to trade "Bitcoin" on a DEX. It allows you to trade Ethereum assets against tokenized BTC using smart contracts. Obviously, this isn't fully decentralized since it requires third party custody from Bitgo, but it offers a hybrid model that's less risky than trading on fully centralized exchanges like Binance.

mk4

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Quote from: elda34b on January 30, 2019, 10:46:56 PM

It's add more trading pairs, at least. Even though I personally won't use it.

Still a no for me regardless. I really don't want to take risks by trusting a company, regardless if BitGo is super reputable or not. I mean, also imagine how low the liquidity would be. Well I guess one more advantage of WBTC is that we can potentially trade it on decentralized exchanges?

elda34b

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Seems like we can audit the collateral publicly. Still, it would be great if they prove they really control the Bitcoin address being published for the audit though[1].

Quote from: mk4 on January 30, 2019, 10:16:54 PM

The only possible use-case for WBTC that I could think of right now is for multi-collateral DAI on the MakerDAO platform; beyond that, I really don't know.

It's add more trading pairs, at least. Even though I personally won't use it.

[1] https://www.wbtc.network/dashboard/audit

mk4

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Wouldn't you need to actually trust BitGo though? If so, that's a big no for me dawg.

For now(as I haven't done ample research yet), though it's quite interesting, I think it's very pointless. The only possible use-case for WBTC that I could think of right now is for multi-collateral DAI on the MakerDAO platform; beyond that, I really don't know.

kissubaby

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Leveraging a technology known as “atomic swaps” to facilitate cross-chain cryptocurrency trades, users on ethereum can request WBTC from certified “merchants” after undergoing necessary anti-money-laundering and know-your-customer (AML/KYC) identification procedures.

Source: https://www.coindesk.com/a-bitcoin-backed-stablecoin-has-launched-on-the-ethereum-blockchain

A few decentralized swap/exchanges are available for WBTC
https://twitter.com/RadarRelay/status/1090782987518701569
https://twitter.com/airswap/status/1090781108147576832
https://twitter.com/KyberNetwork/status/1090777781061935104
https://twitter.com/renprotocol/status/1090778600201015296

Topic: A Bitcoin-Backed Stablecoin (WBTC) Has Launched on the Ethereum (Read 161 times)