The BoringDAO is a blockchain project that perhaps takes inspiration from, but bears no relation to, Elon Musk’s Boring Company, which jazzed up tech by building a tunnel under LA and selling flamethrowers. For bBTC, BoringDAO received investment from eight crypto-focused VCs, including DeFiance Capital, HASHKEY and Youbi Capital. Most of the investors are based in Singapore.
bBTC is very, very similar to offerings such as tBTC or renBTC, other protocols into which you can deposit Bitcoin and receive an Ethereum-based version of Bitcoin in return.
bBTC is also similar to Wrapped BTC (wBTC), a synthetic Bitcoin product that holds 73% of the market share, apart from the fact that bBTC, like tBTC and renBTC, are non-custodial, while blockchain company BitGo holds your Bitcoin while you’re exchanging it for wBTC.
What is Bitcoin DeFi, and How Does It Work?
Wrapped Bitcoin, incidentally, just crossed above $1 billion in market capitalization earlier this week. All in all, the Bitcoin on Ethereum market stands at about $1.3 billion, according to data from Dune Analytics.
The idea of all of these coins is to port Bitcoin onto Ethereum to make the most of Ethereum-specific decentralized finance protocols. Also known as DeFi , decentralized finance refers to non-custodial lending protocols, exchanges and other synthetic derivatives like stablecoins, into which investors have poured about $10 billion since June, according to DeFi Pulse.