BTC on Ethereum diversified
BTC++ it’s a weighed allocation between the different representations of Bitcoin on the Ethereum.
There is a race for bridging Bitcoin to the Ethereum Network. a number of projects have made steps in that direction with adopting solutions that go from 100% custodian services to mechanism design that might result in economic finality for a trustless swap of BTC<->ETH.
Each project has different tradeoffs in terms of security, even assuming the assumptions are correct the risk associated with bugs on the system makes holding those tokens risky in isolation.
- Users who want to have controlled exposure to different BTC on Ethereum don't have to deal with complicated and/or expensive rebalancing procedures.
- Holders of WBTC/pBTC/imBTC/sBTC.. who have those tokens sitting idly in a wallet can now put them to work so they can effortlessly earn fees.
| Token | Custodian | Initial Allocation |
|---|---|---|
| wBTC | wBTC Network | 0.25 |
| pBTC | Provable Things | 0.25 |
| imBTC | The tokenized Bitcoin | 0.25 |
| sBTC | Synthetix | 0.25 |
- Arbitrageurs can easily profit by leveling market inefficiencies between DEXs and even CEXs on BTC coins by confidently keep exposure to BTC only in the pools.
- Ethereum Smart Contracts seeking liquidity for a variety of other use cases (liquidation positions, trading, etc.) have a single point to look at for all their Bitcoin liquidity needs.
| Liquidity Provider | DAO |
|---|---|
| 0.2 | 0 |
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