Wrapped BTC (WBTC) is an ERC20 token that represents Bitcoin on the Ethereum blockchain. It is fully backed 1:1 with Bitcoin, meaning that each WBTC token is backed by an equivalent amount of Bitcoin held in custody by a trusted institution. The project aims to bring Bitcoin's liquidity to the Ethereum ecosystem, enabling its use in decentralized applications (dapps), decentralized exchanges (DEXs), and other financial services on Ethereum. WBTC was launched as a collaborative effort by BitGo, Kyber Network, and Ren, along with several community partners.

$WBTC is an ERC20 token on the Ethereum blockchain that is backed 1:1 by Bitcoin. This means that for every WBTC token in circulation, there is an equivalent amount of Bitcoin held in custody. The token is designed to combine the liquidity and stability of Bitcoin with the flexibility and functionality of the Ethereum network, making it easier to use Bitcoin in various Ethereum-based applications.

The primary purpose of $WBTC is to bring Bitcoin's liquidity to the Ethereum network, allowing Bitcoin holders to engage in various activities within the Ethereum ecosystem. This includes trading on decentralized exchanges (DEXs), participating in decentralized finance (DeFi) applications, and leveraging Bitcoin in smart contracts for lending, margin trading, and other financial activities. By doing so, the $WBTC token enhances the usability and integration of Bitcoin in Ethereum-based applications.

The main use cases of $WBTC include:
- Trading on Decentralized Exchanges (DEXs): $WBTC allows Bitcoin holders to trade directly on Ethereum-based DEXs such as Uniswap, KyberSwap, and Loopring without the need for centralized exchanges.
- DeFi Applications: $WBTC can be used in various DeFi platforms like Compound, MakerDAO, and Aave for lending, borrowing, and earning interest on Bitcoin.
- Smart Contracts: By converting Bitcoin to an ERC20 token, WBTC enables its use in Ethereum smart contracts for functions like collateral in lending protocols, automated trading strategies, and more.
- Dapps Integration: Decentralized applications can leverage $WBTC for payments, prediction markets, and other services that benefit from Bitcoin's liquidity.

The value of $WBTC is directly tied to the value of Bitcoin since each $WBTC token is backed 1:1 by Bitcoin held in custody. Therefore, the price of $WBTC mirrors the price of Bitcoin. Factors affecting Bitcoin's market value, such as market demand, investor sentiment, regulatory news, and macroeconomic trends, will similarly influence the value of $WBTC.

$WBTC tokens are minted based on the amount of Bitcoin deposited with custodians. There isn't a pre-mined or pre-allocated distribution to teams, investors, or community members. Instead, $WBTC is created and burned dynamically as users convert their Bitcoin to $WBTC and vice versa. The current supply distribution of $WBTC can be observed on blockchain explorers and the WBTC dashboard, reflecting the total amount of Bitcoin held in custody and the corresponding $WBTC in circulation. You may also use the “Supply Distribution” section on this page to explore the visual representation of the $WBTC token’s live distribution.

$WBTC brings several technological innovations to the ecosystem:
- Interoperability: By wrapping Bitcoin as an ERC20 token, WBTC facilitates interoperability between the Bitcoin and Ethereum blockchains, allowing Bitcoin to be used within Ethereum's DeFi ecosystem.
- Smart Contracts: WBTC standardizes Bitcoin to the ERC20 format, enabling its use in Ethereum smart contracts for decentralized financial applications.
- Transparency and Security: All WBTC transactions, including minting and burning, are fully transparent and verifiable on the blockchain, ensuring trust and security for users.
- Governance: WBTC is governed by a decentralized autonomous organization (DAO), which includes multiple institutions to manage the addition and removal of merchants and custodians.

$WBTC stands out from other cryptocurrencies due to its unique combination of Bitcoin's value and Ethereum's flexibility. Key differentiators include:
- 1:1 Bitcoin Backing: Each $WBTC token is backed 1:1 by Bitcoin, providing a stable and reliable value proposition.
- ERC20 Compatibility: As an ERC20 token, $WBTC can be easily integrated into the Ethereum ecosystem, including DApps, DEXs, and DeFi platforms.
- Decentralized Governance: WBTC is governed by a DAO, ensuring that no single entity has complete control over the token, enhancing its decentralization and community trust.
- Transparency: The project provides full transparency of reserves and transactions, allowing users to verify the backing of $WBTC tokens at any time.

The core team behind Wrapped BTC and $WBTC includes notable institutions in the blockchain space:
- BitGo: Acts as the initial custodian, responsible for holding the Bitcoin backing $WBTC tokens.
- Kyber Network: One of the initial merchants facilitating the conversion between Bitcoin and $WBTC.
- Ren (formerly Republic Protocol): Another initial merchant and a key partner in the project.

These institutions, along with other community partners, collaborate to ensure the security, transparency, and functionality of WBTC. The governance of WBTC is managed by a DAO, which includes various members from the crypto community to oversee the addition and removal of merchants and custodians.

When it comes to exploring the $WBTC token price and its live on-chain metrics on Ethereum, there’s no better place than this page. But if you are interested in the Wrapped BTC project’s progress, latest partnerships, new potential token utilities, and other announcements, then you need to check out the project’s official website, social media channels (like X (former Twitter) and Telegram), and other official outlets. You can find links to these sites in the “Wrapped BTC Links” section on this page.