The Wrapped Bitcoin (WBTC) synthetic asset, an ERC-20 token on the Ethereum blockchain that is backed by Bitcoin on a 1:1 basis, has been used to mint $4M DAI stable tokens. Some observant users have managed to link this unusually large minting by Nexo, which they say is a sign that it will soon support WBTC.

Rune Christensen, the founder of MakerDAO, said this is indicative of DeFi acting as a vacuum for non-ETH assets,

The WBTC asset is a joint effort started by Kyber Network (KNC), Ren (REN), and BitGo, launched in 2019 and made with the express purpose of making it easier to get smart contracts and Bitcoin to work together. Users can begin generating DAI on the Oasis Borrow portal.

WBTC growth has spiked since May 2020. Source

Decentralized finance (DeFi) stakeholders have spoken positively of the potential of WBTC, saying that it could bring a great deal of liquidity to the space and increase application possibilities. The asset has grown three times in value in the past 10 days, growing from roughly $11 million on May 12 to standing at $35 million at the time of publishing. Just under 4000 WBTC has been locked into DeFi.

The MakerDAO governance community recently voted in favour of the proposal that brought Bitcoins to Ethereum, making Bitcoin the 4th asset capable of generating DAI, joining Ethereum (ETH), Basic Attention Token (BAT) and USD Coin (USDC).