Wrapped Bitcoin

What is Wrapped Bitcoin?

A token called Wrapped Bitcoin (wBTC) replicates the value of Bitcoin (BTC). Decentralized applications created on the Ethereum network can communicate with it. Wrapped Bitcoin, which was introduced in 2019, tracks the price of genuine Bitcoin, hence the value of each wBTC token is inversely proportional to Bitcoin.

Staking is typically not supported by proof-of-work cryptocurrencies like Bitcoin. Staking is a way for investors to profit by assisting with the protection of a proof-of-stake network. In an event known as "the merge," Ethereum transitioned from a proof-of-work protocol to proof of stake in September 2022. Investors with Bitcoin can now stake their wBTC on the Ethereum network if they're looking for passive income opportunities in the cryptocurrency market.

wBTC can also be borrowed, lent, and traded utilizing DeFi Ethereum network services like Uniswap or MakerDAO for other ERC-20 compliant coins.