Editor's Note: This article comes fromGolden Finance, reprinted by Odaily with authorization.
Golden Finance
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, reprinted by Odaily with authorization.
After the introduction of UNI token yield farming incentives for the WBTC liquidity pool, the tokenized Bitcoin on Ethereum - WBTC supply is growing significantly.
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1. Since September 17, after the UNI token income farming incentives launched on Uniswap, the number of new WBTC coins has exceeded 15,000, which is worth about 165 million U.S. dollars if calculated at 11,000 U.S. dollars/BTC;
2. The relative rate of return of the liquidity pool based on Bitcoin is higher than that of Ethereum and Chainlink on decentralized financial platforms such as yEarn Finance;
In just 24 hours after the launch of UNI tokens, the number of WBTC (Wrapped Bitcoin) tokens has increased by 10,800, which means that the total value of Bitcoins currently in DeFi projects/protocols has reached 1.2 billion US dollars. The reason for this is largely because the returns of Bitcoin-based liquidity pools are relatively high, so liquidity began to transfer to these decentralized finance protocols that support Bitcoin.
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Uniswap effect
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Above: Total value locked in WBTC (Source: DeFiPulse)
Uniswap is currently the leading decentralized exchange (DEX) in the encryption industry, and its transaction volume once exceeded that of centralized exchanges such as Coinbase. At this stage, the WBTC-ETH liquidity pool on Uniswap has become the most "attractive" source of Bitcoin liquidity, because it is one of the four liquidity on Uniswap, and injecting liquidity into it can get UNI token rewards .
Above: WBTC liquidity on Uniswap (Source: Uniswap Info)
Bitcoin on Ethereum
Since Uniswap will not add new liquidity pools that support UNI token incentives during the governance grace period, this means that the size of the WBTC-ETH liquidity pool may continue to expand in the next thirty days.
Other liquidity pools eligible for UNI yield farming include DAI-ETH, USDT-ETH, and USDC-ETH, which have grown by 880%, 136%, and 142%, respectively, since launch.
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Bitcoin on Ethereum
As of this writing, the total value of Bitcoin locked in decentralized finance smart contracts has reached $1.25 billion.
Due to the relatively high rate of return, Bitcoin liquidity pools and vaults are gaining more and more attention from investors, resulting in an increase in the number of WBTC, renBTC, and sBTC minted on Ethereum. These tokenized bitcoins are an ERC-20 token whose value is backed by actual bitcoins locked in specific smart contracts, and tokenized bitcoins are compatible with DeFi platforms built on Ethereum.
Some notable recent developments in tokenized Bitcoin include:
2. The yEarn Finance vault provides a 30% annual rate of return for sBTC liquidity providers on the Curves platform including RenBTC, WBTC and sBTC; in contrast, the other two vaults based on Ether and LINK are expected to Only 1.73% and 2.24% returns.bitcoin3. Curve added a new HBTC liquidity pool to its decentralized trading platform, but within a week of its release, the pool only added $1,300 worth of HBTC.
