DeFi for Bitcoin: a New platform offering BTC loans on Ethereum

In the second week of February, a new project by the name of tBTC was introduced, similar to the one on the Ethereum network published Wrapped Bitcoin (WBTC). tBTC, however, claims that it is an application without a depot effect that allows the users to BTC to Deposit and lend with interest.

30. January 2019, the Wrapped Bitcoin (WBTC), started the project in the Ethereum network using the ERC20-Standards. WBTC makes it possible to give secured BTC in Ethereum, but the method has a Depositary. The Depositary of WBTC is Bitgo, and the project is also supported by Kyber Network and Ren (formerly Republic Protocol).

Last August, the Software developer, Matt Luongo told on Twitter of his work, and published the tBTC specs. Luongo tweeted that the “cat is out of the bag” and he and his Team had previously worked for 10 months at tBTC. 13. February announced Luongo then, the first publication of tBTC on the Ropsten-Testnet. The Software engineer emphasized that this was the first of several “planned versions, which lead to the Mainnet. Luongo is not the result of (freely translated):

tBTC opens the entire Ethereum Ecosystem for Bitcoiners. What happens if Bitcoiners between Coinjoin and Tornado.cash can choose to ensure the fungibility?

#tBTC is live on testnet! https://t.co/k8q5WLmOFu pic.twitter.com/FxA5moyi3c

— Keep #tBTC (@keep_project) February 14, 2020

Luongos announcement was Suppoertern of Bitcoin and Ethereum community is located, although the recent Hack of Bzx has initiated this week a lot of skeptics to make the decentralised Finance (defi) in question. Eric Wall from the trading and Clearing technology company Cinnober describes on Twitter that concepts such as tBTC should be taken.

For Ethereum/DeFi as these crazy neighbors are present, the leads will always be something Good.

Wall wrote.

The project developers claim that the delivery of tBTC is always supported by an equal number of the reserved Bitcoins. Currently, the Open-Source tBTC project is to Ropsten live, so that developers can drive their own Testnet tBTC with the reference App. Since the concept of a kind of of BTC project, which is not deposited on the paper or in the Form of securities, it has, according to its Creator with an advantage over WBTC.

However, it remains for the time being, to be seen whether it can enforce the project langristig against strong competition.