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How tBTC Lets People Use Bitcoin on Compound

2020-05-11

tBTC lets people use Bitcoin to act on the Ethereum blockchain. One of the first things people will be able to do with their TBTC is an integration with Compound, an Ethereum-based algorithmic money market protocol that lets users earn interest or borrow assets. Compound represents over 12% of the total defi market.

To use Compound with your BTC, you first need to mint TBTC. Read the guide for exchanging BTC for TBTC here.

tBTC lets users earn interest without middlemen, reducing counterparty risk and friction.

tBTC is trustless, allowing users to convert TBTC to BTC at any time with no intermediary. It uses threshold ECDSA, which is audited and used by major crypto wallets and exchanges including Binance. Users can track their BTC at all times. Because tBTC is open source, the code and fee structure are transparent.

Compound uses cTokens to represent the underlying asset, earn interest, and act as collateral. Once you have your TBTC, you can transfer it to cTBTC. Through this chain -- BTC >> TBTC >> cTBTC -- the underlying BTC is accruing interest on Compound.

Join the tBTC mailing list for project updates, and ask questions on the #tbtc Discord channel.

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