What is cWBTC
The full meaning of the above acronym is compound wrapped bitcoin. Before we go into what that entails, let us briefly look at the meaning of this two terms
1. Wrapped crypto
2. Compound
Wrapped crypto
The concept of wrapping crypto was introduced in a bid to promote liquidity and interoperability of tokens across platforms. They are also the go to choice for users interested in the defi and dapps space.
Wrapped cryptos are prototypes or smart contracts representing collaterals of an original token locked away in a digital vault on a separate blockchain.
Wrapped bitcoin is a perfect example of wrapped crypto. Crypto users wrap their tokens if they want to be able to use it for DeFi transactions, or if they are interested in dapps.
Compound Finance
Compound in the crypto space is a decentralized marketplace for crypto investors which offers functionalities for lending and borrowing digital assets.
Compound tokens or Comp tokens like cWBTC are ERC 20 tokens providing representation of a user’s funds in the Compound blockchain.
The Compound protocol supports lending and borrowing of cryptocurrencies by crypto investors.
It is an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications
Wbtc is one of the few crypto coins supported for lending and borrowing by Compound finance.
The rest are
- Ether (ETH)
- USD Coin (USDC)
- Wrapped BTC (WBTC)
- Sai (SAI)
- Dai (DAI)
- Basic Attention Token (BAT)
- Tether (USDT)
- 0x (ZRX)
- Augur (REP)
cWBTC Founders
cWBtc is simply an acronym for compound wrapped bitcoin
cWBTC was first tradable on 24th Jul, 2020. It has a total supply of 159,290. As of right now cWBTC has a market capitalization of USD $86,322,703,547.97. The current price of cWBTC is $541921.67
BTC was founded in 2009 by an anonymous Satoshi Nakamoto
How Does cWBTC Work
Compound is a protocol on the Ethereum blockchain that establishes money markets, which are pools of assets with algorithmically derived interest rates, based on the supply and demand for the asset.
Suppliers (and borrowers) of an asset interact directly with the protocol, earning (and paying) a floating interest rate, without having to negotiate terms such as maturity, interest rate, or collateral with a peer or counterparty.
cWBTC is one of the few crypto coins supported by the Compound protocol
Where to Buy cWBTC
cWBTC is listed in many top cryptocurrency exchanges even though it cannot be bought with Fiat money.
The best bet is to buy bitcoin first with your fiat money in a fiat to crypto exchange.
You already need to have Bitcoin (BTC) or Ethereum (ETH) to trade with.
Top exchanges to buy cWBTC are Binance, coin base, Coinex, Coinspace etc.
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