3 ms·
"wrapped bitcoin (wBTC) and a type of staked ether derivative (stETH)." Wtf is all if this crap? Feels like 2008 with piles of CDOs and weird derivatives
by fourseventy 4y ago
"wrapped bitcoin (wBTC) and a type of staked ether derivative (stETH)." Wtf is all if this crap? Feels like 2008 with piles of CDOs and weird derivatives
- wmf 4y agoCreating cool derivatives is one of the purposes of DeFi. BTC only exists on the Bitcoin blockchain but since Bitcoin doesn't really have smart contracts people "wrap" it into wBTC on Ethereum. I guess this is akin to a eurodollar. stETH is like a bond or certificate of deposit where you can lend ETH to be staked and receive a liquid claim against it.