BTCB on Binance Smart Chain 101

Did you know that you can use Bitcoin within the BSC ecosystem? This article introduces you to 4 ways to use BTCB, a wrapped Bitcoin on BSC, to boost your earnings.

If you don't HODL at least some BTC, it's like you don't even exist. It's the best performing asset for the last decade, and the increasing adoption and awareness indicate that it might not change anytime soon. The best and seemingly safest strategy is HODL, but what if you're a HODLer who wants to do more than sit on his stack? You use BTCB.

What is BTCB?

BTCB is a pegged bitcoin on Binance Chain and Binance Smart Chain issued by Binance.com with a 1:1 peg to BTC locked on the Bitcoin blockchain. The 1:1 peg means that the amount of wrapped BTCB is equal to the amount of BTC locked in a public address. You can verify the current supply for all locked BTC and issued BTCB through the Proof of Assets webpage. The amount of locked BTC may not be precisely the same as the wrapped BTC due to the delays caused by the extensive auditing process.

BTCB provides you with additional utilities that are not possible with Bitcoin due to its limitations.

The main advantage is clearly in holding BTC while using the BSC ecosystem with BTCB to increase your gains. Without BTCB, you'd have to sell your BTC and miss the potential price gains on BTC as you'd have to buy multiple BEP20 assets (or BNB) to use with the different dApps. When you exchange your BTC for BTCB, your BTC remains locked, and you can redeem it back at any time by depositing back BTCB.

Currently, the biggest market for BTCB is on PancakeSwap with BTCB/WBNB being the most popular trading pair with more than $1.3m in 24h volume. Just on the BSC network, there's more than 73,000 BTCB worth over $2.4 billion USD. This indicates a very strong interest in BTCB with more than 80,000 BTCB in circulation on Binance Chain, Binance Smart Chain, and Ethereum networks.

⚠️ The official and unique address of BTCB on BSC is 0x7130d2a12b9bcbfae4f2634d864a1ee1ce3ead9c ⚠️

BTCB on Binance Smart Chain

BTCB on Binance Smart Chain is like bitcoin on steroids, except it's not bitcoin. While your bitcoin is locked, you can use BTCB to experience the different dApps from the BSC ecosystem.

Some of these methods will reward you in different BEP20 tokens such as CAKE or BAKE, while others will reward you in BTCB, ultimately increasing the amount of BTC you can claim back once you decide to redeem BTCB.

Liquidity pools

Imagine this – your BTC is locked and safeguarded by Binance.com while you're earning interest on your BTCB deposited in the PancakeSwap liquidity pool. The ultimate HODL experience. Multiple platforms offer liquidity pools for BTCB, including Beefy.finance.

To earn a yield on your BTCB, all you need to do is connect to the Beefy app with a Binance Smart Chain-enabled wallet, such as Trust Wallet, approve BTCB as an asset using your wallet, and then deposit BTCB to start "harvesting" yield.

Lending

You can use your BTCB as collateral to obtain a loan and leverage your holdings or deposit your BTCB to a lending platform and earn interest on borrowing your assets to other users like you. Platforms like CREAM, ForTube, and many others allow you to add your BTCB to a lending pool where you receive an attractive interest from providing your BTCB for lending.

Minting stablecoins

Like minting of physical coins back in the days when we used to back up our money with collateral, the same principle operates when minting stablecoins on BSC. BSC projects like Venus or QIAN are crypto-backed stablecoins that use BTCB as collateral to issue more stablecoins. Your BTCB is used to give value to freshly minted stablecoins, and you're rewarded with earnings.

Trading

If you're a trader, you can use BTCB for decentralized and secure trading experience with BSC exchanges such as BiSwap DEX, PancakeSwap, or BakerySwap and more! You can also use BSC to trade Bitcoin (BTC) directly on Binance DEX. Many decentralized exchanges offer great arbitrage opportunities, increased privacy, the highest security, and a wide range of trading pairs and services.

Risk Warning: BTCB and other wrapped "BTokens" can be used in high-risk investments with increased volatility and risk of loss. Always do your own research (DYOR) before using BTCB or any other DeFi products.