Ethereum
Classic Enters DeFi via Wrapped ETC
Ethereum Classic has gained a
new bridge into the $13 billion decentralized finance (DeFi) market through
the launch of Wrapped Ethereum Classic (WETC), an ERC-20 token pegged to the
value of ETC.
Ethereum Classic Labs, the ETC
blockchain’s biggest supporter, announced the launch of the new token
detailing Ethereum Classic users who were previously unable to access the
Ethereum DeFi ecosystem will now be able to do so. James Wo, founder and
chairman of ETC Labs, was quoted as saying:
“We wanted to make sure ETC could
go to a different ecosystem and use different applications on top of that
ecosystem. I expect at least 10% of ETC holders will want to participate and
use WETC.”
While other wrapped tokens,
like WBTC, are guaranteed and backed by BitGo, a centralized entity, Wo noted
that for ETC a smart contract was created so “people can easily exchange ETC
for WTC using a smart contract which is totally decentralized.” This is
similar to Thesis’ tBTC and Ren’s renBTC.
The move follows the release of
the DAI-ETC bridge, which allows ETC users to gain access to MakerAO’s
popular DAI stablecoin.
