Use Cases and Risks With Wrapped Bitcoin on MakerDAO


  • 223
  • 1
  • 14.312
  • Reply

  • Download Download Torrent Open in the desktop app ADD TO PLAYLIST


    Published on Jul 23, 2020
    About :

    I made a long-form LeoPedia tutorial and accompanying video explaining what Wrapped Bitcoin (WBTC) is and how it works. In it, I also mentioned a particular use case that was the original reason for me spending the time to learn about WBTC in the first place.

    MakerDAO is a lending protocol that I’ve also covered in a previous LeoPedia guide. The protocol allows you to establish a proxied vault, deposit some crypto in it and take out a loan against that collateralized crypto. All possible thanks to the Ethereum network.

    One major “problem” with MakerDAO is that it was native to Ethereum only (in fact, it still is native to Ethereum). The issue that people had with lending protocols on ETH is that you could only use ETH or ETH-based tokens to interact with collateralized positions. Many people - myself included - have wanted to setup a vault utilizing Bitcoin to take out a loan.

    I personally find Bitcoin to be a much more stable asset for collateralized loans than something like ETH or BAT.

    By leveraging WBTC, you can now have a “Bitcoin-equivalent” collaterlized in a MakerDAO vault. My favorite place to establish these vaults and manage them is at

    In this clip, I talk about the use cases of this kind of collateralized loan and also some of the risks associated with using both WBTC and MakerDAO.

    Full tutorial on WBTC:

    Listen & Subscribe to the LeoFinance Podcast!

    steemleo black token divider.png

    Our Community:

    LeoFinance is an online community for crypto & finance. We run several projects that are powered by Hive and the LEO token economy:

    Track Hive DataBlog & Earn LEOLEO FAQ
    HivestatsLeoFinanceLearn More
    Trade Hive TokensLearn & ContributeHive Witness


    Tags :

    leofinance wbtc bitcoin makerdao crypto

    Woo! This creator can upvote comments using 3speak's stake today because they are a top performing creator! Leave a quality comment relating to their content and you could receive an upvote worth at least a dollar.

    Their limit for today is $0!
    Time until khaleelkazi can give away $0 to their commenters.
    0 Days 0 Hours 0 Minutes 0 Seconds

    To comment on this video please connect a HIVE account to your profile: Connect HIVE Account

    17 views a week ago $

    More Videos

    65 views 3 years ago $
    1 views 7 months ago $
    6 views 2 years ago $
    0 views 3 months ago $
    83 views 2 years ago $