Opportunities for Earning with Bitcoin Loans Unveiled Through Lido and Badger Partnership
A groundbreaking collaboration between Lido and BadgerDAO has led to the creation of eBTC, a Bitcoin-backed stablecoin that offers users the chance to obtain loans in Bitcoin without incurring extra costs while also receiving rewards. This innovative approach leverages the liquid-weighted ETH token provided by Lido, ensuring a seamless and efficient borrowing process for crypto enthusiasts.
BadgerDAO Introduces eBTC for Effortless Bitcoin Loans
โ BadgerDAO, a prominent player in the Bitcoin (DeFi) sector with over $3.5 billion in BTC deposits, recently announced the launch of eBTC, a synthetic stablecoin pegged to Bitcoin.
โ The token is backed by staked ETH (stETH) from Lido, offering users a secure and reliable way to access Bitcoin loans.
โ Unlike conventional DeFi lending platforms that impose various fees, eBTC allows users to deposit Ethereum as collateral for obtaining loans in Bitcoin.
โ The protocol operates with a 0% interest rate and no repayment or initiation fees, enabling users to earn interest on their collateral instead of paying fees for the loan.
โ By pegging its ETH with Lido (via stETH), eBTC ensures a capital-efficient alternative to traditional bitcoin wrapped instruments, enhancing security and reducing risks associated with custody services and cross-chain bridges.
Revolutionizing DeFi on Ethereum and Bitcoin
โ Lidoโs Liquidity Observation Lab (LOL) will provide early adopters with an additional 15 stETH rewards during a one-month incentive period.
โ Additional rewards will be distributed through an airdrop at the end of the incentive period, allowing users to redeem rewards hassle-free.
โ DeFi Master, DeFiYaco, acknowledges the exceptional use case of Lido Staked ETH in the eBTC protocol, highlighting its capital-efficient borrowing option.
โ With over $36 billion in deposits, Lido emerges as the primary liquid staking solution on Ethereum, with stETH as the largest decentralized financial token by market capitalization.
โ BadgerDAOโs founder, Spadaboom, expresses excitement over the launch of eBTC, emphasizing its uniqueness and transparency in enabling anyone to borrow Bitcoin effortlessly.
Emphasizing Security and Functionality
โ BadgerDAO prioritizes high-level security in the development of eBTC, setting a new standard in the DeFi space following a front-end bug two years ago.
โ The team collaborated with security partners such as RiskDAO and Spearbit for economic risk assessment and smart contract auditing, ensuring a secure platform.
โ eBTC operates under a minimal governance model to resist centralized control, reflecting a commitment to a trustless DeFi environment.
โ Future enhancements to the eBTC protocol include user-friendly features like one-click leverage and looping capabilities to improve user experience and platform functionality.
โ BadgerDAO aims to continuously enhance eBTC, focusing on user-centric features and operational excellence to provide a seamless borrowing experience while promoting platform growth.
Hot Take: Badger Partners with Lido to Enable Users to Earn Through Bitcoin Borrowing
News: Badger partners with Lido to allow users to earn by borrowing in Bitcoin.
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