BadgerDAO and Lido Team Up to Introduce eBTC Synthetic Bitcoin Token
Badgerdao, in collaboration with Lido, has introduced eBTC, a synthetic bitcoin token backed by ether, with the aim of improving decentralization and capital efficiency in decentralized finance (defi).
The decentralized autonomous organization (DAO), dedicated to integrating bitcoin into defi, revealed the launch of eBTC, which allows users to borrow synthetic bitcoin using staked or non-staked collateral without upfront fees or interest. eBTC is pegged to the price of bitcoin and operates on the Ethereum network, leveraging Lido’s staked Ether (STETH) as its collateral.
Badgerdao’s protocol focuses on the ETH/BTC ratio, aiming to transition trading and strategic activities involving this pair to onchain transparency. The team emphasizes eBTC’s security measures, involving key stakeholders in protocol development to mitigate risks associated with code and economic modeling. This launch aligns with the rise of derivative tokens like STETH and wrapped bitcoin (WBTC) dominating the crypto market.
Clever Robot News Desk 27th March 2024
