Wrapped Bitcoin
WBTC
Evaluation Score
Overall rating on a scale of 0-10
Crypto Token Health Score Explained
Our AI-powered health score evaluates on-chain metrics, community support, tokenomics, and more. This helps DeFi investors understand risk, compare tokens, and make informed decisions. Learn how to analyze DeFi tokens' risk and use these insights for DeFi portfolio risk management.
AI Analysis
Comprehensive evaluation of the token
Overall Analysis
WBTC is the dominant tokenized Bitcoin on Ethereum, offering deep liquidity and seamless DeFi integration. Its smart-contract code is well-audited and stable, though active development is moderate with a small core team. Community engagement is steady but infrastructure-focused rather than grassroots. Tokenomics are strong—each WBTC is 1:1 backed by on-chain BTC reserves with transparent audits. Market demand remains high as BTC holders seek DeFi exposure, making WBTC the go-to bridge despite centralization trade-offs. Governance is consortium-based and off-chain, posing some counterparty risk, but multi-sig controls and frequent proofs of reserves mitigate many concerns. Security history is clean with multiple top-tier audits.
Pros:
- Unmatched liquidity (largest TVL among wrapped BTC)
- Robust security and proof-of-reserves
- Widespread DeFi usage (DEXs, lending, yield farming)
Cons:
- Centralized custodial model (BitGo, merchant signers)
- Limited community vibrancy beyond institutional/developer circles
- No token-holder governance or native yield
Detailed Analysis by Category
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Wrapped Bitcoin (WBTC)
Wrapped Bitcoin (WBTC)
Symbol: WBTC
Standard: ERC-20
Peg: 1 WBTC = 1 BTC
Wrapped Bitcoin (WBTC) is a fully backed ERC-20 token that brings Bitcoin liquidity to the Ethereum ecosystem. Each WBTC token is backed 1:1 by Bitcoin held in custodial reserves and can be used across Ethereum-based decentralized applications.
Key Features
- Bitcoin on Ethereum: Seamlessly use BTC in DeFi protocols, smart contracts, and dApps.
- Custodian-backed: Each WBTC is minted only when an equivalent BTC deposit is held by licensed custodians.
- Audited & Transparent: On-chain proof of reserves and regular third-party audits ensure full backing.
Common Use Cases
- Decentralized Exchanges: Provide BTC liquidity for trading on platforms like Uniswap and SushiSwap.
- Lending & Borrowing: Collateralize WBTC in protocols such as Aave, Compound, and MakerDAO.
- Yield Farming & Liquidity Mining: Earn rewards by supplying WBTC to liquidity pools and DeFi strategies.
Integrations & Support
WBTC is supported across leading DeFi platforms, wallets, and analytics tools, including:
- Uniswap
- SushiSwap
- Aave
- Compound
- MakerDAO
- Yearn Finance
- Metamask
- Etherscan
Note: Wrapped Bitcoin enables BTC holders to participate in Ethereum’s DeFi landscape by leveraging the security of Bitcoin’s value and the programmability of ERC-20 tokens.
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