- Tron enters new collaboration to improve participation in DeFi
- The Blockchain network will bring Wrapped Ether and Bitcoin to its DeFi space
- Cryptocurrency users on the Tron network can now borrow stablecoins
Tron News Today – in a bid to improve participation in the DeFi (Decentralized Finance) market, one of the leading Blockchain-based network’s, Tron has entered a new partnership. Per the report, Tron entered the partnership to onboard WBTC (Wrapped Bitcoin) and (WETH (Wrapped Ether) to its blockchain.
This report is an important one for Tron’s followers, considering that WBTC is a well used Bitcoin token. With this report, Tron has stepped up its ambition of expanding its DeFi ecosystem. The announcement comes at a time when there has been a high demand for Bitcoin token has risen across the DeFi market overall.
Tron to Bring Wrapped Bitcoin and Ether its DeFi
According to the announcement from Thursday, the Ether rival entered a strategic collaboration with BitGo. BitGo is a well known qualified digital currency custodian. Wrapped Bitcoin is reportedly a joint initiative between BitGo, Ren (formerly known as Republic Protocol), Kyber Network, and a host of others. Although the project is currently being managed by WBTC DAO (Decentralized Autonomous Organization).
BitGo holds the crypto reserve when BTC is wrapped. Hence, the custodian will hold the underlying digital asset, Bitcoin, and Ether, which will allow the Tron community to wrap the tokens as TRC-20 tokens. The digital assets can be used compatibly on Tron’s Blockchain, and help to unlock more opportunities for community members allowing them to participate in the currently-booming DeFi market.
Tron Expands Ethereum Weak Point
While speaking on the development, Justin Sun, the founder of the Tron network and CEO of BitTorrent, said:
“Users can now use their BTC/ETH and enjoy the many benefits that the TRON DeFi ecosystem offers without the issue of high gas fees on Ethereum. We are happy to expand the DeFi potential of the Tron network by partnering with BitGo (an industry leader) to bring integral cross-chain solutions like WBTC (Wrapped Bitcoin) and WETH (Wrapped Ether) to the Tron ecosystem.”
Among many pressing issues, digital currency users on the Tron network can now borrow stablecoins. Users on Tron can also lend on DEXs (decentralized exchanges), and perform other activities on the Tron ecosystem. All of these can be done with the Wrapped Bitcoin and Wrapped Ether. It is important to note that this token will bear the value of the Ether or Bitcoin deposited on BitGo via a 1:1 ratio. There are currently many Bitcoin tokens, including the TBTC that was relaunched recently. WBTC has Bitcoin worth over $820 million in custody.