Compound Protocol Approves 40% Collateral Factor for Wrapped Bitcoin

Wrapped Bitcoin (WBTC), an ERC-20 token that tracks the price of bitcoin (BTC) can now be used on DeFi protocol Compound (COMP) with a 40% collateral factor. A community proposal floated by Compound holders in May 2020 has finally received the green light to add WBTC as collateral on the lending protocol.

The go-ahead of the proposal means users of the Ethereum-based Compound protocol will now be able to use WBTC to borrow other assets on the DeFi platform. Now, Compound protocol’s users will not only be able to loan WBTC while using 40% of its value as collateral but also have the option to avail a bitcoin-based product for collateral usage.

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