BadgerDAO has partnered with Lido Finance to launch a new Bitcoin-pegged stablecoin, eBTC.
This initiative marks a novel approach to Bitcoin loans, leveraging Ethereum’s blockchain through Lido’s staked ETH token (stETH) as backing.
New Stablecoin Enters DeFi
The eBTC stablecoin emerges as a distinctive offering in the DeFi market. It aims to enable users to borrow Bitcoin at a 0% interest rate without loan initiation and repayment fees.
This system allows Ethereum deposits in various forms to serve as collateral. It also allows users to draw eBTC loans while earning rewards on their staked collateral through Lido
Furthermore, eBTC introduces customizable collateralization ratios for its users, with the lowest threshold set at 110%. This feature enhances the system’s resilience, automatically liquidating positions that fall below the stipulated collateral value to ensure ongoing protocol stability.
To incentivize early adoption, Lido’s Liquidity Observation Lab has announced it will distribute 15 stETH in rewards over a one-month period, facilitated through an airdrop, to minimize participants’ transaction fees and streamline the reward collection process.
