Written by: J1N, Techub News Recently, the issue of the transfer of control of the wBTC project has caused widespread discussion and concern in the community. What is the point of concern to the community? In addition to wBTC, what other wrapped Bitcoins can be used? First, let's review what happened? The cause of the incident was that on August 6, the cryptocurrency asset service provider BitGo announced a joint venture with the global custody platform BiT Global to accelerate the global strategic expansion of the wBTC business, so as to realize the transformation of its wBTC business into a cross-jurisdictional and cross-institutional custody business. At the same time, the control of the wBTC project will be transferred from BitGo to Justin Sun and BiT Global-related institutions within 60 days. This move has caused concern to MakerDAO, a stakeholder of wBTC. The security team pointed out that after Justin Sun took control of TUSD, its operating procedures and transparency deteriorated, the former management team resigned, the implementation of the reserve certificate was interrupted, and TUSD was severely decoupled several times in the redemption service, and the RWA project associated with Justin Sun claimed to hold US Treasury reserves, but did not provide clear audits or evidence. Comprehensive evaluation of Sun Yuchen as a person related to the new wBTC joint venture is too risky for MakerDAO, so MakerDAO decided to limit the risk exposure of wBTC. As the stablecoin issuance protocol ranked first in the entire network by TVL, MakerDAO's move will undoubtedly attract market attention. Regarding whether MakerDAO will continue to use wBTC as collateral for the stablecoin DAI, its security team requires BiT Global to disclose detailed information about the company, including specific location, company number, directors and employees, ownership structure, private key management information, and strategic joint ventures and whether Sun Yuchen is involved in the company's operations. Although Sun Yuchen later promised on Twitter that he would not use BitGo's reserves, he still did not respond positively to MakerDAO's request. In addition to wBTC, is there any packaged Bitcoin that allows users to participate in DeFi? Yes, that is dlcBTC. Unlike wBTC, dlcBTC adopts the Bitcoin protocol Discreet log contracts to allow for self-encapsulation casting in self-custodial wallets, fully realizing self-custody without worrying about the current wBTC custody risk.Compared with wBTC, dlcBTC has the following advantages:
Self-wrapping: dlcBTC is self-wrapped by depositors (dlcBTC merchants) who lock BTC in DLC. Self-wrapping means that DLC can only be paid to the original depositor, so that BTC cannot be stolen in a hack or confiscated by government action.
Fully automated: Due to the manual steps in the BitGo custody process, wBTC minting or destruction takes 3-12 hours. dlcBTC is fully automated and can be minted or destroyed within 3-6 BTC block confirmations.
Flexible Fees: Since DLC.Link is not a custodian, dlcBTC has lower overhead, providing more competitive minting and burning fees.
On Jasper Vault, an on-chain options protocol that will not cause margin calls, wBTC and dlcBTC trading products are supported. The products are divided into intraday options for retail investors that aim to lower the entry threshold, and American options for professional investors. Two delivery modes, physical delivery mode and differential profit delivery mode, are provided to adapt to continued rising and volatile markets.
dlcBTC on the Jasper Vault protocol currently has trading time periods ranging from 2 hours to 24 hours, with leverage up to 300x without the risk of liquidation.
Jasper Vault stated that if customers are worried about the unstable price of wBTC, they can use put options on the Jasper Vault protocol to hedge risks, or buy high-leverage put options to make a profit, or they can choose to directly trade dlcBTC call and put options. dlcBTC has seen a significant increase in trading volume as the platform has recently offered a large number of free NFTs for users to try trading dlcBTC.
