Badgerdao, in partnership with Lido, has launched eBTC, an ether-backed synthetic bitcoin token that aims to increase the decentralization and capital efficiency of bitcoin lending in the decentralized finance (defi) space.
Badgerdao and Lido Enter Partnership to Launch eBTC
Badgerdao, a decentralized autonomous organization (DAO) committed to integrating bitcoin (BTC) into defi, has announced the launch of eBTC in collaboration with liquid staking platform Lido.
The new token allows users to leverage staked or unstaken collateral to borrow synthetic bitcoins without upfront fees or interest. eBTC tokens are pegged to the price of bitcoin (BTC) and are built on the Ethereum network, utilizing Lido-staken Ether (STETH) as the sole collateral.
"By using reward-generating STETH as collateral, eBTC provides the most transparent, secure, and capital-efficient method for borrowing BTC," the team said of eBTC's claim X.Badgerdao differentiates itself by being the first protocol to focus exclusively on ETH ratios /BTC, which aims to shift the majority of trading and strategic activity involving this pair from off-chain and centralized counterparties to onchain transparency.
On Tuesday, the team explained that the protocol operates on immutable, non-custodial smart contracts and reduced governance Badgerdao further emphasized its strict approach to security with the introduction of eBTC.
The launch of eBTC coincides with a period in which various ether and bitcoin derivative tokens have grown to dominate the crypto economy. For example, STETH's market capitalization places it among the top ten, while wrapped bitcoin (WBTC) secures a position in the top 20.
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