MakerDAO included token anchored to bitcoin as asset collateral, but what is it in reality?

Key facts:

The community decided this Sunday to add WBTC to provide “greater liquidity to the protocol”.Although it is presented as an option to bring bitcoin to the network Ethereum, it is not so.The community of MakerDAO approved this Sunday, may 3, include the token WBTC (ERC-20) as the fourth asset collateral warranty on its platform. With this decision the users of the protocol can generate DAI with a criptoactivo anchored to bitcoin in the network Ethereum.Through a statement released on their official blog, MakerDAO reported that the choice of WBTC will provide “greater liquidity” to the ecosystems of finance decentralised (DeFi) exchanges and decentralized (DEX).”The addition of WBTC means that holders of bitcoin can now convert your BTC to WBTC (bring bitcoin to the chain of blocks of Ethereum), and then use them to generate the DAI (…) The flexibility of the protocol Maker means that almost any type of asset that can be tokenizado, you can add as collateral in the system, provided that the risk parameters appropriate and is approved by the governance of the Maker”, it was reported Sunday.At this point there is to make clear certain aspects. In the first place, that the decision of the community is not “bringing bitcoin” to the network Ethereum as you want to promote. The goal of the ad might be more related to an advertising strategy to promote the use of DAI and not a new integration by means of a token that only serves as a marker of precio.De this way, when you say that you try to bring more liquidity to the protocol, is supported, indirectly, that the intention is to “sell” the end product, which in this case is the stablecoin GIVES All this in the midst of what will represent the pr├│ximamoel halving of bitcoin, a significant event within the community of the cryptocurrencies that captures attention from the international media.To say that bitcoin is reaching out to Ethereum by means of a token CKD-20 to buy DAI is, at least, somewhat misleading. In the blog MakerDAO sold the idea that enthusiasts can now generate DAI with bitcoin. But this is something that is not entirely true and that could generate greater confusion, aspects that before encourage a wider adoption could generate an opposite effect.

Promoting companies

Behind the token WBTC (ERC-20) are the enterprises of custody of criptoactivos BitGo and the houses of change decentralised Kyber Network and Republic Protocol, a fact that was also questioned by the users.In social networks there was a discussion on the possibility of the generation of DAI would be centralised, a fact that would go against the nature of the protocol. Therefore, one of the comments was the of @DegenSpartan, who published on Twitter.”As of now, around 10% of $DAI comes from $USDC (as an asset) as collateral. According to the current parameters, 21% of DAI can be backed by assets that rely on individual entities, Circle (USDC) or BitGo (WBTC). What happens when it is 30%? 50%? 90%? ┬┐at what point in DAI, it goes from being decentralised to being centralised?”, wrote the user in the social network.The decision of MakerDAO occurs less than two months after the approval of the inclusion of the stablecoin USDC as back-up collateral in the operations of the platform. Consequently, now there are four underlying assets that are included in the protocol taking into account also ETH and BAT.Disclaimer: the views and opinions expressed in this article belong to the author and do not necessarily reflect those of Breaking News.

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