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Can you trade BTC/USDC or BTC/ETH on any of them?

• rglullis 4y ago
  Yes. You can trade one of the many ERC-20 tokens that wrap bitcoin (e.g, WBTC, renBTC) and later you can swap these tokens for "real" BTC, also just by executing the smart contracts from the wrappers.
  • FabHK 4y ago
    Thanks. Do you have some good link to explain the mechanics, particularly the "unwrapping" of eg. WBTC? That involves a trusted third party, doesn't it?
    • rglullis 4y ago
      > That involves a trusted third party, doesn't it? For most cases, yes. Binance, Gemini and some others provide a version of their token that can run in multiple chains. It's supposed to be 1:1 backed by BTC, but you have to trust them fully. It's a little bit better for WBTC [0]. WBTC is a consortium of 30+ crypto projects who keep the BTC under their control through a multi-sig wallet, and that can be audited on-chain. In this case, the majority of the signers would have to conspire in order to steal the funds or do anything malicious. renBTC is even more decentralized. It is part of the ren "network" [1], which provides inter-blockchain applications. I haven't looked yet how it works exactly, but my understanding is custody of BTC happens though a proper dapp. Last year I wanted to get rid of all my BTC, and I did it though ren. It was BTC -> renBTC -> DAI. [0]: https://wbtc.network https://wbtc.network [1]: https://renproject.io https://renproject.io