Cryptocurrencies
Bitcoin Rally Gets Added Boost From ‘Wrapped’ Crypto Tokens
- Bitcoin is being used as collateral on Ethereum network
- WBTC can be used to speculate on Ethereum-based DeFi apps
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As Bitcoin rallied to its highest level in almost three years, it was getting some unlikely support from advocates of its biggest rival.
Fans of decentralized finance, or DeFi applications, which strive to let people lend and borrow without intermediaries, are using Bitcoin as collateral on the Ethereum blockchain. In so-called Wrapped Bitcoin, or WBTC, transactions users are placing the coin into popular apps like Compound that are generating returns even greater than the almost 90% gains posted this year by Bitcoin.