Wrapped Bitcoin token cBTC has started operating on the Cardano testnet. The developers of the project aim to attract BTC users to Cardano’s decentralized finance (DeFi) ecosystem. Users can now mint cBTC tokens over the anetaBTC protocol and use the tokens to fund, trade or provide liquidity to Cardano testnet protocols. These tokens are on the Cardano blockchain even though they are Bitcoin fixed at a ratio of 1:1.
Wrapped tokens facilitate the transfer of value between blockchains that normally lack interoperability. At the same time, they allow users to access different DeFi protocols without the need for the native token of the protocol.
Various DeFi improvements have been helping Cardano rise since the beginning of 2023. In this way, the TVL of the protocol has increased from $ 50 million to $ 150 million. DeFi exchanges like Minswap, Indigo, and Wingriders hold most of the TVL in Cardano. In addition, Djed, a stablecoin project, seems to have processed over $15 million since the beginning of March.