We go through the best wrapped Bitcoin BTC wBTC APY interest rates among all available savings accounts.
Wrapped Bitcoin BTC is the Bitcoin version on the Ethereum blockchain. We describe why wrapped Bitcoin exists and what benefits it can offer you.
Also, we answer questions about where to buy wBTC and who secure the Bitcoin backing up the value of the wBTC?
No Financial Advice, Information only. Do your own research
Wrapped Bitcoin Interest Rates APY
There are not many sites offering wrapped Bitcoin wBTC APY interest rates.
However, we have listed all of them, and compared the requirements to achieve the highest rate and we also have reviews for each listed company.
Midas Investment Wrapped Bitcoin
Midas Investments added wrapped Bitcoin wBTC to their portfolio list in September 2022.
Midas Investment is known as the interest-generating platform for cryptocurrencies with the highest rates in the entire crypto passive income space.
Midas Investment has been around since 2018 and has over 200M+ assets under management (AUM).
It has over 7000+ active investors and over 20 available assets to invest in.
Midas Investment also has an exchange feature where you can swap between the supported assets directly on the platform.
In addition, Midas Investment offers several CeDefi strategies where they combine different earning strategies hedging against each other to earn a high and stable yield.
Read more in our Midas Investment review.
Coinloan Wrapped Bitcoin Interest Rate APY
Coinloan offers you the opportunity to earn a good APY yield on your deposited wrapped Bitcoin wBTC.
Here, you can earn 5.2%-7.2% and the exact percentage you receive depends on how many CLT tokens you have staked on their platform according to the bullet list below.
The staking mechanism calculation is fixed. Interest rates in the Interest Account increase by 0.1% with every 125 CLT you hold:
- 125 CLT raises your Interest Account rates by 0.1%
- 375 CLT — by 0.3%
- 1,000 CLT— by 0.8%
- 1,250 CLT — by 1%
- 2,500 CLT — by 2%
The maximum bonus is 2%. Having more than 2,500 CLT won’t affect your interest rates anymore.
Read more in our Coinloan review.
What is Wrapped Bitcoin WBTC?
Wrapped Bitcoin (wBTC) is the ERC 20 version of Bitcoin.
What does this mean?
Wrapped Bitcoin allows users to interact with Ethereum’s decentralized finance (DeFi) ecosystem.
Wrapped Bitcoin History
Wrapped Bitcoin (WBTC) was launched in 2019.
All these three organizations are key players in decentralized finance (DeFi) and wanted to provide a way for Bitcoin tokens to be used on the Ethereum network.
Who secure the Bitcoin to Wrapped Bitcoin Exchange?
When you exchange your Bitcoins for wrapped Bitcoin wBTC someone must guarantee that the wBTC is possible to exchange back to BTC.
Therefore there must be some kind of organization securing all the private keys for all the BTC exchanges to wBTC.
The wBTC protocol is controlled by a decentralized autonomous organization (DAO). The wBTC DAO has several members (17 at the time of writing this) representing stakeholders from around the Defi ecosystem.
Wrapped Bitcoin DAO members each hold the key to the multi-signature wallet that secures the system.
Read more: Best Bitcoin BTC APY Interest Rate.
Where can Wrapped Bitcoin be used?
Bitcoin is isolated within the Bitcoin network with limited applications built on it.
The idea with WBTC is to make it possible for Bitcoin holders to use it on the Ethereum chain to contribute with liquidity or earn interest.
Some use cases for the WBTC include:
- Increased transaction speed: Ethereum blockchain is preferable to the Bitcoin network if you are looking for fast settlements. You wrap your BTC, send it as ERC 20 (or even layer 2 such as MATIC) and the receiver can unwrap them to BTC on the Bitcoin network.
- Increased liquidity: Decentralized exchanges, also called DEXs, often use Ethereum as the main token since most of them are built on the ETH network. Instead of having to exchange BTC for ETH and then go to a decentralized exchange for other digital assets, it’s possible to use WBTC.
- Smart contracts with Bitcoin: WBTC allows the possibility of using BTC to back smart contract transactions.
Where to Exchange Wrapped Bitcoin?
Many great altcoin exchanges list Wrapped Bitcoin markets, including Binance and Coinbase.
Binance is a great place to exchange wrapped Bitcoin with meager fees. However, they don’t accept US customers.
If you are a US citizen, you can use Coinbase instead to exchange wrapped Bitcoin.
In addition, there are decentralized exchanges, like Uniswap.
Wrapped Bitcoin VS Bitcoin
- Bitcoin BTC is the native cryptocurrency on the Bitcoin blockchain. Wrapped Bitcoin is an Ethereum-based token that has its value tied directly to that of Bitcoin.
- Wrapped bitcoin makes it possible for users to take advantage of the latest dapps without giving up the Bitcoin exposure.
- Wrapped Bitcoin also expands the possibility of earning a good yield on your Bitcoin holdings in the Defi space.