Summary
BadgerDAO and Lido Finance have partnered to launch eBTC, a new Bitcoin-pegged stablecoin in DeFi. It allows users to borrow Bitcoin at 0% interest rate using Ethereum deposits as collateral through Lido’s stETH token. The stablecoin aims to reduce risks associated with traditional wrapped Bitcoin mechanisms and offers customizable collateralization ratios. Early adopters can earn rewards through an airdrop by Lido’s Liquidity Observation Lab.
Key Points
1. BadgerDAO has partnered with Lido Finance to launch a new Bitcoin-pegged stablecoin, eBTC. This initiative leverages Ethereum’s blockchain through Lido’s staked ETH token (stETH) as backing for Bitcoin loans.
2. The eBTC stablecoin allows users to borrow Bitcoin at a 0% interest rate without loan initiation and repayment fees. It also enables users to draw eBTC loans while earning rewards on their staked collateral through Lido.
3. eBTC introduces customizable collateralization ratios for users, with the lowest threshold set at 110%. This feature enhances the system’s resilience by automatically liquidating positions that fall below the stipulated collateral value to ensure ongoing protocol stability.