Badgerdao, in partnership with Lido, has unveiled eBTC, an ether-backed synthetic bitcoin token aimed at enhancing the decentralization and capital efficiency of borrowing bitcoin in the decentralized finance ( defi) space.
Badgerdao Introduces a New Ether-Backed Synthetic Bitcoin Token
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Badgerdao and Lido Forge Partnership to Launch eBTC
Badgerdao, a decentralized autonomous organization (DAO) committed to integrating bitcoin ( BTC) into defi, has announced the launch of eBTC in collaboration with the liquid staking platform Lido. The new token allows users to leverage staked or non-staked collateral to borrow synthetic bitcoin without any upfront fees or interest.
The token eBTC is soft pegged to the price of bitcoin ( BTC) and built on the Ethereum network, utilizing Lido’s staked Ether (STETH) as its sole collateral. “By using reward-generating STETH as collateral, eBTC provides the most transparent, secure, and capital-efficient method for borrowing BTC,” the team remarked on X.
Badgerdao’s eBTC claims to distinguish itself by being the first protocol focused exclusively on the ETH/ BTC ratio, aiming to shift most trading and strategic activities involving this pair from off-chain, centralized counterparties to onchain transparency. On Tuesday, the team explained that the protocol operates on immutable, non-custodial, and governance-reduced smart contracts.
Badgerdao further emphasized its rigorous approach to security with the introduction of eBTC. “Key stakeholders have been involved in the protocols development since inception, informing key architectural decisions while helping to avoid potential risks associated with both the code and economic modelling,” the team noted on X.
The launch of eBTC coincides with a period where numerous ether and bitcoin derivative tokens have grown to dominate the crypto economy. For instance, the market capitalization of STETH ranks it among the top ten, while wrapped bitcoin (WBTC) secures a position in the top 20.
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