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Announcing WBTC On FiRM

Patb
Patb

Head of Growth

FiRM

2 min

Cover Image for Announcing WBTC On FiRM

What Is WBTC?

Wrapped Bitcoin (WBTC) is Bitcoin (BTC) that has been converted for use on the Ethereum ecosystem. It’s an ERC-20 (Ethereum) token that’s backed one-to-one by Bitcoin (BTC), which means that one WBTC will usually equal one bitcoin. 

Who Created WBTC?

The initial developers of the wrapped Bitcoin protocol were BitGo Inc, Kyber Network, and Ren. Their consortium released a wBTC whitepaper and launched WBTC in January 2019. The wBTC protocol today is controlled by a DAO. 

How does WBTC Work?

Wrapped Bitcoin DAO members each hold a key to a multisig wallet that secures the system, allowing members to vote to add or remove members and to make changes to the smart contracts on which the system is built. 

BitGo audits the system regularly and initiates a proof of reserve transaction on the Bitcoin blockchain, which allows users to verify the validity of their Bitcoin reserves.  

How Do I Deposit and Borrow Against WBTC In FiRM?

To get started, you simply deposit WBTC as collateral in order to borrow DOLA. FiRM does not custody the collateral, instead it is locked in a personal escrow under the user’s control. The personal escrow allows the user to maintain custody of their collateral while still subjecting it to the rules of FiRM, enabling replenishments and liquidations. 

One brilliant aspect of FiRM is the ability to combine deposits, borrows, looping, and the purchase of DBR for maximum convenience in FiRM’s interface. Prepare the position as you prefer and FiRM will let you confirm approvals and transactions in sequence when you’re done. 

Looping, btw, is very cool: you can multiply the borrowing against your WBTC position in this same transaction using our Accelerated Leverage Engine. Huge gas savings vs. doing this in consecutive transactions.

After your position has been created, you You can perform any of these actions individually after the position has been created. To reduce the position, just click the “Unstake” button.

DYOR

It is important to do your own research (DYOR) before depositing your WBTC tokens into FiRM. There always is some risk involved in any investment, and you should make sure that you understand the risks before you proceed. 

If you have any other questions, please feel free to ask in Discord. You can find more detailed information in our docs and here is a link to a more general FiRM & DBR explainer. 


Patb
Patb

Head of Growth


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