The Dubai-based, multi-currency spot and futures trading platform, BTSE, is tokenizing its native currency, BTSE, to participate in the blossoming DeFi space as per a press release on Sep 7. By conforming to the ERC-20 standard and introducing a custodial model, every wrapped BTSE token in existence will always tally with the amount held in custody at a 1:1 ratio.
Attracted by Ethereum Opportunities and DeFi
This is a deviation away from their initial plans. BTSE supports Liquid. However, the trouble is, Liquid—in their view, has zero traction on exchanges and doesn’t support DeFi.
By giving users the option to support Ethereum and strategically conforming to the ERC-20 token standard, BTSE token stands to be more liquid. The wrapped ERC-20 token is now available for trading on Uniswap and the exchange has provided the required liquidity.
BTSE will still Support Liquid
Still, BTSE won’t abandon as their privacy features remain attractive.
BTSE will continue to lock tokens representing the number of wrapped BTSE tokens in Ethereum effectively linking the two platforms. For tracking, they will publish a treasury address.
Part of the statement read:
“By letting users choose the Ethereum network, we open up the possibilities to get listed on decentralized exchanges such as Uniswap or Sushiswap. We are not abandoning Liquid, and its privacy features.”
Listing on Uniswap
Ethereum remains popular because of the depth of its tooling and undoubtedly, the rise of open finance dApps.
The tokenization of BTSE, as per the announcement, will eventually help in bringing more liquidity to DEXes consequently opening up more opportunities to holders who can participate in lending or the provision of liquidity.
The minting on new wrapped BTSE tokens will be done by the custodian but will be initiated by the merchant. Since it is based on Ethereum, all newly minted tokens can be transparently tracked.
For accountability, the merchant is the only entity permitted to burn once the conversion to ERC-20 tokens is complete.
In August, BTSE integrated xDai’s ERC-20 token, STAKE, enabling its users to take advantage of the growing DeFi ecosystem.
As BTCManager reported in Nov 2019, BTSE launched the Monero (XMR) Futures contracts making it the first mainstream exchange to support the derivatives product of the privacy-focused coin.
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