Introducing eBTC: A Novel Bitcoin-pegged Stablecoin Offering by BadgerDAO and Lido Finance
Tuesday, 26 March 2024, 13:20
New Stablecoin Enters DeFi
The collaboration between BadgerDAO and Lido Finance introduces eBTC, a stablecoin providing users with the ability to borrow Bitcoin at a 0% interest rate, utilizing Ethereum deposits as collateral. This novel approach diverges from traditional wrapped Bitcoin mechanisms by using stETH as collateral, aiming to mitigate the risks associated with cross-chain bridges.
Customizable Collateralization and Early Adoption Incentives
- eBTC allows users to choose their collateralization ratios, boosting the system’s resilience by automatically liquidating positions that drop below the prescribed threshold.
- Lido’s Liquidity Observation Lab incentivizes early adoption by distributing 15 stETH as rewards within a month, promoting participation and reducing transaction fees.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.