Coinbase, the big name in US crypto exchanges, just launched a new token called Coinbase Wrapped Bitcoin (cbBTC). It’s basically a Bitcoin (BTC) token that runs on the Ethereum blockchain.
What’s the Big Deal?
This means that Bitcoin holders can now use their BTC on Ethereum-based DeFi apps, like Aave, Curve Finance, and Compound Finance.
Think of it like this: You have a dollar bill, but you want to use it at a store that only accepts euros. cbBTC acts like a converter, turning your dollar into a euro so you can spend it.
How Does it Work?
Coinbase makes it super easy. When you send your BTC from Coinbase to an Ethereum or Base address, it’s automatically converted to cbBTC. And when you get cbBTC back in your Coinbase account, it’s swapped back to BTC.
So, what can you do with cbBTC?
- Lend it out: You can use your Bitcoin to earn interest by lending it out on DeFi platforms.
- Borrow other crypto: You can use your Bitcoin as collateral to borrow other crypto assets.
This opens up a whole new world of possibilities for Bitcoin holders!
Disclaimer:
This is not financial advice. Always do your own research before investing in crypto. /p>
