Binance Wrapped BTC

BBTC

BBTC is a synthetic version of BTC compatible with Ethereum. It is backed by BTC reserves custodied by Binance.

Risk Rating
Best
$66,259.00
6.59%
Summary
What we like
Enables users to earn yield on their idle BTC holdings across various DeFi apps on Ethereum. Provides an easy on and off-ramp through the Binance ecosystem.
What we like less
Greater centralization as Binance custodies the deposited BTC and controls the minting and redemption of BTCB. Open to manipulation as wrapping BTC cannot be automated via a smart contract.
What it means for you
BBTC is a great way to gain exposure to BTC directly on Ethereum and also an easy way to put your BTC to work for you in DeFi.
Information
Blockchain
  • Ethereum
Key Metrics
  • Fully Diluted Valluation: $191.7M
  • Total Supply: 2,900
  • Volume (24H): $811
  • ATH: $1,893,429.00 (09/23/2022)
  • ATL: $9,771.06 (09/23/2022)
Risk Assessment
Best
Asset Strength

BBTC is a low-cap, fully collateralized asset. This asset depends on a centralized entity for custody services. This asset is exposed to the underlying risks of Binance Bridge, a protocol rated as Watch out.

Asset Tokenomics

BBTC has a fixed supply. BBTC is a DeFi-compatible version of Bitcoin on Ethereum. It is backed 1:1 by BTC reserves held with Binance.

Asset Volatility

BBTC is highly correlated to the overall market.

Dependencies

Binance Wrapped BTC has no dependencies.

Things to know about BBTC

Who invented BBTC?

BBTC is a tokenized version of BTC on Ethereum and backed by BTC collateral held with the Binance exchange. Binance publishes the on-chain proof of reserves on its site for full transparency so that anyone can publically verify the amount of BBTC tokens issued matches the number of BTC deposited.

How does BBTC work?

BBTC is created and maintained by a centralized exchange, Binance. In addition, Binance created a trading pair on its centralized exchange for BBTC-BTC to provide an easy way for anyone to convert from the pegged token back into native BTC on the Binance exchange. When a buy order is filled, a new order will be placed while an equal amount of funds will be deposited from the reserve address into the Binance exchange. The sum of the buy order and funds on the published reserve address is always bigger than the total supply of BBTC to ensure it is always fully backed.

How secure is BBTC?

BBTC will never have the same level of decentralization or security as BTC since it relies on trusting people and organizations to manage the system instead of automated smart contracts. Nonetheless, BBTC publishes the reserve address for anyone to audit. Users can always independently verify if the amount of BTC reserved in the BTC address on the Bitcoin blockchain matches the amount of BBTC tokens minted on Ethereum.