To provide Bitcoin (BTC) and Ethereum (ETH) holders with unprecedented exposure to decentralized financial instruments (DeFis), Tron Foundation (TRX) has joined hands with leading digital payments ecosystem BitGo. Wrapped Bitcoins (wBTC) and Wrapped Ethereums will go live as Tron-based TRC-20 tokens.
Wrapped Bitcoins, Wrapped Ethers will be available on Tron
According to the press release shared with U.Today, Tron will add Wrapped Bitcoins (WBTC) and newly minted Wrapped Ethers as TRC-20 tokens within the framework of the collaboration with BitGo digital assets payments vendor.
BitGo will serve as reliable custody for users' Bitcoins (BTC) and Ethereums (ETH) once assets are "wrapped," i.e., created on Tron (TRX) blockchain. Thus, the BTC and ETH of Tron users will be utilized in numerous DeFi use cases, including collateralizing, "yield farming," lending and borrowing operations, and decentralized cryptocurrencies exchange.
According to Mr. Justin Sun, CEO of Tron Foundation (TRX) and founder of BitTorrent (BTT), the new partnership will allow DeFi market participants to avoid the main disadvantages of the Ethereum (ETH) network:
Everyone may now use their Bitcoins and Ethereums to enjoy all the benefits of the TRON DeFi ecosystem without the high gas fees on Ethereum!
As covered by U.Today previously, Ethereum (ETH) gas fees printed a number of new records in Q3, 2020. Due to the hype around red-hot DeFi applications like Yearn.Finance (YFI), Yam Protocol (YAM) and Uniswap (UNI), the median Ethereum (ETH) transaction fee surpassed $15 in a few days.
Tron Foundation is deadly serious about DeFi
Negligible costs and low transactional latency are the two main merits of Tron Network emphasized by Mike Belsche, CEO of BitGo:
Our new strategic alliance with TRON creates even greater opportunities for users to expand to other chains and tokenize their BTC on the TRON dApp ecosystem, while transacting at a lower cost and faster speed.
This partnership can be one another brilliant confirmation of great DeFi ambitions showcased by Tron Blockchain. Belsche repeatedly claimed that the focus for Tron in 2020 is the decentralized financial applications segment.
As U.Today recently reported, immediately after the launch of JustSwap—the first Tron-based DeFi—Mr. Sun announced that his team had created a $10 mln fund to support and promote valuable DeFi products on the Tron blockchain.