For those who missed it, Maker recently added support for wBTC as collateral, marking the fourth asset support outside of ETH, BAT and USDC which can be used to mint new Dai. While many were skeptical this would amount to much, what they didn’t see coming was the rapid increase in new wBTC being minted in the past few weeks – the vast majority of which was immediately sent and locked in Maker Vaults through Oasis Borrow.
The ~1550 WBTC mint from today was just used to generate 5 million DAI that went to @NexoFinance's wallet.
~9.5 million DAI is now being backed by 2625 WBTC (68% of the total supply of WBTC) https://t.co/R9RRmHBV9v
— Anthony Sassano | sassal.eth (@sassal0x) May 22, 2020
Underpinning this rapid shift is a US-leading exchange and token issuer – CoinList. While this may come as a surprise to some, it turns out CoinList is quickly becoming the leading provider for large Bitcoin holders to use when it comes to posting their Bitcoin as collateral to take advantage of the extensive DeFi landscape.
When asked for comment, Matthieu Jobbe Duval – CoinList’s head of financial products responsible for their WBTC operation stated:
“CoinList launched a BTC<>WBTC liquidity pool in February, allowing our users to convert BTC for WBTC (or vice versa) instantly. This supercharged the WBTC liquidity pretty much overnight. Since the launch of the pool, we have minted 3 out of 4 WBTC in existence and are involved in 20% of the global WBTC ADV.”
Interestingly enough, CoinList’s competitive advantage is said to come from the nascent nature of front-end tooling regarding the creation of WBTC. As it stands today, there is no easy portal to press a button and wrap Bitcoin. As such, large investors are turning to trusted institutions like CoinList to handle this process for them, especially with such large sums of capital at play.
Dai’s Road to Recovery
As anyone who has been keeping an eye on Maker since Black Thursday knows, Dai suffered a pretty strong setback after breaking it’s ATH in supply just a few months prior. Now, with the recent surge in WBTC volume, Dai is back on track to break its ATH despite a 0% Dai Savings Rate.
Dai outstanding is getting close to all-time high againCurrently 116 Million. Mostly as ERC20 as opposed to DSR which was most Dai at the previous peak.
WBTC in @MakerDAO went 10x this week from $1M to $10M Digital gold-backed USD, anyone?