WBTC is in a trust crisis. Can tBTC take advantage of the situation and rise up

Author：Token Analyst

Author: crv.mktcap.eth, encrypted KOL; Translation: 0xxz@

Last week, BitGo announced that it would hand over control of WBTC, sparking concerns over the health of packaged BTC over the following weekend.

Why do some people worry that Justin Sun has greater strategic power in WBTC?

The DeFi generation may still remember Sun Chenyu's previous Bitcoin packaging product HBTC, but its performance was poor. Currently, its trading price is closer to USDT than BTC.

This time will be different, right.

The shrewd Sun Chenyu quickly clarified his exact role in the ecology. Nevertheless, DeFi users have initiated a serious discussion about the role of WBTC in the ecosystem.

WBTC has been criticized for its relative centralization, however, the largest BTC packaging product stands out in the competition. Last cycle,

CurveFinance has specifically merged WBTC with Ren's renBTC and Synthetix's sBTC, both of which no longer exist.

Are there any other options besides WBTC? So far, there is no perfect solution.

A tempting option is frxBTC, rumored to be ready soon. Although tempting, Degens' demand is' now, immediately, immediately '.

Avax also has a custody solution for BTC B。

The most obvious alternative to WBTC is tBTC from Threshold Network. In addition to being more decentralized, tBTC also exhibits the Lindy effect in terms of scale:

V1: 4 years

• v2: 1.5 years

After BitGo's announcement, MakerDAO had a heated debate about closing all WBTC debts. Then, with approximately 10% of DAI support, abandoning WBTC will require a strong alternative. It is not surprising that tBTC has entered people's sight:

TBTC has a good DeFi adoption rate. It is widely used in Curve Finance. In addition to actively trading in major stability and volatility pools, tBTC also supports crvUSD stablecoin.

Some traders have started rotating trades:

Will this storm really cause a sharp drop in tBTC/WBTC? Shortly after the announcement, the hourly chart showed some price changes. But we expect that a sharp decline will not happen immediately.

In the past week, the market value of both packaged BTC tokens has been quite stable. Even though widely discussed, neither has shown significant inflows or outflows.

The market value of the two is significantly different:

WBTC: 155000 BTC

tBTC：3000 BTC

This is indeed a 'crazy moat!' WBTC operates with the thinnest profit margin. The net profit commission for BTC worth $9 billion is only $12.7 million.

Therefore, WBTC is unlikely to disappear soon. The liquidity and integration accumulated over so many cycles will not be quickly replaced, especially if the representative continues to operate and maintain the hook.