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Bitcoin Tokenization Aids DeFi Growth

Image by Aaron Olson from Pixabay

Bitcoin tokenization has hit the market on a large scale and it continues to reap benefits. It has combined with yield farming to aid the growth of DeFi over the past three months according to ConsenSys.

According to the Ethereum second quarter report, the tokenized BTC is overtaking the sum of BTC on its scaling solution. Around 3,000 of more than 11,000 BTC on Ethereum was tokenized through renBTC, sBTC, imBTC, and hBTC.

“Cross-chain interoperability is anti-maximalist, but is more likely the future of blockchain,” the report asserts.

The report also mentioned the increase of yield farming which is helping develop the DeFi model. According to the report, “the generation of passive returns through systematic lending of crypto assets across various DeFi protocols.

The launch of Compound’s governance token in June was a major catalyst that sparked increased interest in yield farming, with daily active DeFi users and the sum of Ether locked in DeFI protocols surging late in the month.”

ConsenSys’ data proved that the growth of yield farming has not attracted large number of users outside DeFi sectors. It shows the representation of 2000 super users.

DeFi platforms Uniswap, Lendf.me, and Bancor are the main users.

“Security incidents are inevitable in emerging technology,” ConsenSys concluded.

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