DeFi won’t last long without unlocking Bitcoin’s $250B treasure chest
While we have seen Ethereum-powered projects such as Uniswap, Aave and Compound champion the DeFi space, the community is beginning to show signs of demand for solutions that incorporate Bitcoin (BTC). There are two ways that Bitcoin can be used in DeFi products: Wrapped representations of BTC can be used on separate blockchains (like WBTC on Ethereum) or native smart contracts can come to the Bitcoin blockchain itself.
However, Bitcoin’s recent move onto Ethereum as a wrapped asset signals market demand for BTC in DeFi. Taking a valuable asset like Bitcoin and putting it in a smart contract such as an ERC-20 token that shares the security properties of Ethereum can be an uneasy concept for Bitcoin holders.