Wrapped Bitcoin Token Launched On Cardano Testnet
- Antwan Koss
- April 24, 2023
- Bitcoin, Crypto, news
- Cardano, Crypto, News, Wrapped tokens
- 0 Comments
Cardano developers are trying to attract Bitcoin (BTC) investors into the Cardano DeFi ecosystem by launching wrapped Bitcoin tokens cBTC. Using this facility, users can mint cBTC tokens from the anetaBTC protocol and they can use those tokens to trade, fund or provide liquidity to the Cardano testnet protocol. This is mainly done to provide Bitcoin’s liquidity to the Cardano ecosystem. These tokens are a very close representation of Bitcoin but it is built on the Cardano ecosystem.
Easy To Transfer Value Among Blockchains
Using wrapped tokens, it will be very convenient for users to transfer value among blockchains as they do not require the native token of a protocol and still they can access different DeFi protocols. This was not possible earlier due to a lack of interoperability.
Not just Cardano, anetaBTC has also developed testnet for the Ergo protocol. Earlier, in January the public testnet for Ergo protocol was released by anetaBTC. This is anetaBTC’s plan to capture the DeFi popularity of these two leading blockchain platforms.
anetaBTC is all set to build top-notch infrastructure in its testnet platform. This will include writing smart contracts that will enable Bitcoins to reach the vault if any user is keen on minting the cBTC.
The new protocol will have three phases V1, V2 and V3. V1 has a vault where the Bitcoins will be sent. At first, V1 will not be decentralized as it will be governed by anetaBTC. Whereas, after V3 is implemented, it will completely decentralize the previous version V1.
ADA whale, a Cardano-focused Twitter account believes that this step will drive the next bull market of ADA which will be based mainly on governance, DeFi and scaling. The tweet from ADA whale clearly demonstrates the narrative.