Wrapped Bitcoin’s Supply Has More Than Doubled, but the BadgerDAO Hack Exposed Risks of Moving Bitcoin to Ethereum

Posted on by American Coins & Gold

Wrapped Bitcoin’s Supply Has More Than Doubled, but the BadgerDAO Hack Exposed Risks of Moving Bitcoin to Ethereum
Last week’s hack on decentralized finance (DeFi) protocol BadgerDAO put a major but less talked-about cryptocurrency in the spotlight once again.Wrapped bitcoin, an ERC-20 token on the Ethereum blockchain that is collateralized 1-to-1 with bitcoin, has more than doubled its supply from a year ago, as traders and investors seek alternative high yield opportunities in DeFi.This rapidly growing demand for WBTC comes as yields for bitcoin borrowing and lending have grown less competitive compared to the lucrative DeFi lending market. But a recent hack on BadgerDAO, which focuses on high yields on wrapped bitcoin, has raised concerns around the security…