Image Source - modified
DeFi or decentralized finance was a remarkable success in the field of cryptocurrency in this summer. The idea of eliminating the third party or middle man in DeFi really caught the public attention. ‘Yield farming’, a term which was nonexistent sometimes back, has become the talk of the town today. The projects like MakerDao, Compound established their distinctness long ago since 2017-2018 but the recent growth story seems to be really amazing. DeFi started on Ethereum. The first DeFi experiment was ‘The Dao’ but it ended up in disaster. DAI was launched during the Bitcoin bull run of 2017 and slowly but steadily it grew to become a super hit. DeFi can’t be imagined without DAI now as it is the lifeline of DeFi. Majority of DeFi activity is happening on Ethereum only. Bitcoin had to arrive on Ethereum to take part in DeFi. It wasn’t possible to ignore the numero uno cryptocurrency. Presently WBTC, an Ethereum wrapped Bitcoin token, is the top asset of DeFi.
Image from defipulse
DeFi is really happening. $2.92B is locked in DeFi now. WBTC dominance is 47.41%. But the arbitrary gas fee of Ethereum has been a problem of DeFi. Due to this reason, many other blockchains are having high potential to grab the opportunities in DeFi. EOS is one blockchain where DeFi activities are shaping up in lightning speed. Recently, pTokens launched pBTC which is a cross-chain DeFi composable token. A good chunk of pBTC is on EOS chain and 70% of pBTC on EOS chain is trading on Defibox.
”pTokens are a tool enabling cross-chain composability. It is an essential component enabling Decentralized Financial (DeFi) DApps to be compatible with any crypto asset. The pTokens technology was designed to overcome the inherent “walled garden” limitation of blockchain protocols. The world of open finance grows larger and more sophisticated by the day. Yet this decentralized economy still suffers from a major drawback - a lack of cross-chain interoperability. In an ideal DeFi system, cryptocurrencies will move freely and seamlessly between exchanges, DApps and wallets. pTokens aim to solve the liquidity and interoperability riddle - a technology to connect any token with any blockchain.” – ptokens website
Source - How ptokens work
pBTC is pegged to BTC i.e. 1 pBTC is always worth 1 BTC. pBTC can move freely and seamlessly between exchanges, DApps and wallets. The pTokens DApp enables anyone to issue and burn pBTC - you can find it at here. pTokens’s infrastructure is the combination of two cutting-edge technologies: blockchain and trusted computing sandboxing techniques (TEEs). The technology guarantees a secure and fully auditable execution of processes. This means transparency is maintained across the whole cross-chain process.
Source - Bitcoin in DeFi
Swapping pBTC on Defibox
pBTC can be obtained by swapping EOS or EOS tokens on Defibox, the EOS version of Uniswap. EOS + pBTC is an active market there and 24 hrs swap volume is 19.25K EOS currently. Swap also provides you with some BOX tokens, the governance token of Defibox. When the transaction mining weight of a certain liquidity pool > 0, the smart contract releases BOX every second for the transaction mining of the liquidity pool. You can claim BOX anytime.
Providing liquidity to pBTC markets on Defibox
If you want to be a market maker with your pBTC, you can do that and earn commissions from the swaps conducted by the users. Providing liquidity to DeFibox is rewarding as when you provide liquidity in DeFibox, the smart contract releases 0.024 BOX per second for liquidity mining. BOX amount obtained by liquidity mining per second = 0.024 × 70% × the proportion of your liquidity asset value to the total liquidity asset value. You can claim the BOX rewards anytime. You earn commissions + Box mining reward.
Defibox is a successful DAPP. Although it was launched very recently, the swap volumes are ever-increasing. It needed more liquidity. pBTC can provide enormous liquidity to it. The initial feedbacks are encouraging. The swaps are taking place with minimum slippage. EOS transactions don’t consume any gas like Ethereum. It is more economic to swap on EOS with Defibox. Do we need more pegged coins on EOS? If pBTC succeeds, it’ll pave the way to embrace the whole crypto world on EOS chain.