The amount of locked Bitcoin in decentralized finance (DeFi) reached a new record level by increasing 1000 BTC in just one day.
The amount of Bitcoin locked in decentralized finance (BTC) has had a big leap recently and reached a new record level.
DeFi Pulse data shows that on May 12, this amount rose from 2235 BTC to 1000 BTC, rising to 3235 BTC. That is, 1000 BTCs were added to locked BTCs in DeFi in just one day.
Where does the increase come from?
As crypto research firm Arcane Research has noted in its latest report , a deep review shows that this increase is due to WBTC, not normal BTC. WBTC is an ERC-20 token that supports 1: 1 with Bitcoin and makes Bitcoin available on the Ethereum network .
The transaction is thought to be related to the introduction of WBTC as a collateral in Maker recently. Accordingly, possibly a customer deposited BTC on the lending platform Nexo to get credit. Nexo also sent BTC to CoinList to create WBTC. Then Nexo took WBTC and sent it to Maker and locked it as collateral. The company then bought DAI in exchange for sending it to the customer or selling it for dollars before giving the customer a dollar.
Nexo is a BlockFi-like lending platform. The platform allows users to obtain credits by depositing their crypto money or deposit their current crypto money.
On the other hand, with the last move of 1000 BTC, the amount of locked Bitcoin in WBTC tokens has significantly exceeded the Lightning Network. DeFi Pulse data shows that the locked Bitcoin in WBTC is 2235, while the locked amount in the Lightning Network remains at 916.