Mhairi
March 2, 2022, 1:16pm
1
This UMIP will add Wrapped Bitcoin (WBTC) to the supported collateral currencies on the global whitelist contract, allowing the usage of WBTC as collateral currency.
# Headers
| UMIP-45 | |
|------------|------------------------------------------------------------------------------------------------------------------------------------------|
| UMIP Title | Add Wrapped Bitcoin as a collateral currency |
| Authors | Logan (logan@opendao.io) |
| Status | Approved |
| Created | Feb 2, 2021 |
| Link to Discourse | https://discourse.uma.xyz/t/adding-wbtc-as-collateral-umip/123 |
## Summary (2-5 sentences)
This UMIP will add Wrapped Bitcoin (WBTC) to the supported collateral currencies on the global whitelist contract, allowing the usage of WBTC as collateral currency.
## Motivation
The motivation for adding WBTC as a supported collateral in the global whitelist contract is to add utility to the UMA architecture; access to WBTC as a collateral currency creates opportunities for partner projects to better leverage the protocol.
Wrapped Bitcoin (WBTC) is an ERC-20 token on the Ethereum blockchain that represents Bitcoin. Each WBTC is backed 1:1 with Bitcoin. Wrapped Bitcoin allows for Bitcoin transfers to be conducted quicker on the Ethereum blockchain and opens up the possibility for BTC to be used in the decentralized finance ecosystem. The Bitcoin collateral is held in custody by the centralized custodian, BitGo. Bitcoin can be converted to Wrapped Bitcoin and vice versa quite easily.
At the time of writing, WBTC is trading at $33,767.47 with a 24-hour trading volume of $346,285,873. There is a circulating supply of 116,870 WBTC coins with a max supply of 116,870. Uniswap is the current most active market trading it.
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