Victor Ugochukwu · Dec 14, 2020 . 5min read
Alameda Research Issues highest amount of WBTC Tokens
While the DeFi ecosystem is constantly in limelight Synthetic Token, WBTC witnesses the highest issue by Alameda Research to date.
By Komal Joshi · Sep 25, 2020 . 6min read
On Friday (25), crypto trading company Alameda Research carried out the most massive issue of wrapped bitcoin tokens ( WBTC ) in history. Synthetic token, WBTC is a standard ERC-20 token (transferable) and backed by bitcoin in a 1: 1 ratio. The largest issue was 2,317 WBTC (about $ 25 million). Recently the crypto hedge fund Three Arrows Capital issued (25): 2,316 WBTC on Thursday.
The newest largest mint ever! Turns out @SBF_Alameda was also feeling cute. https://etherscan.io/tx/0x12d379736f13bf25f764bb38ae9355f2bcdc38d0911a499da3ce85c5becd3bc0Wrapped BTC on Twitter
Synthetic Token WBTC with respect to providing liquidity
WBTC delivers greater liquidity to the Ethereum ecosystem, including decentralized exchanges (DEXs) and financial applications. Recently, the majority of trading volume takes place on centralized exchanges with Bitcoin. WBTC transforms that, bringing Bitcoin’s liquidity to DEXs and making it feasible to utilize Bitcoin for token trades. WBTC regulates Bitcoin to the ERC20 format, building smart contracts for Bitcoin. This makes it simpler to write smart contracts that combine Bitcoin transfers.
According to on-chain data, there’s now 69,836 synthetic bitcoin tokens (over $700 million) circulating on the Ethereum blockchain. Further, out of the six synthetic bitcoin token projects, wrapped bitcoin commands the largest number of coins with over 63% and 44,622 wrapped bitcoin. However, Alameda Research is the largest minter of WBTC to date, with 37,609 tokens. Moreover, CoinList and imToken are ranked second and third, having minted 28,162 and 8,991 wrapped bitcoin tokens, respectively.
According to Sam Bankman-Fried, founder of Alameda Research, the company is witnessing robust demand for WBTC. However, the reason behind increased demand appears to be a proliferation in the DeFi sector. He further elucidates that low yet prominent DeFi yield shows lots of demand for bitcoins on other blockchains. He further states that wrapped bitcoin is one of the most comprehensive among them. Moreover, it has extended adherence in DeFi and yield farming, so there is still demand for BTC.
Earlier, Alameda Research collaborated with TradAir, a provider of technology solutions. The collaboration provides Alameda to participate in TradAir’s network of OTC cryptocurrency liquidity providers. While this partnership will concentrate on delivering FX-style liquidity for TradAir’s cryptocurrency offering, it also opens up access to Alameda’s new trading opportunities.
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