Tezos Welcomes Wrapped ETH To Win Over DeFi Uses

Tezos welcomes wrapped ETH onto its blockchain thanks to StableTech that brought this solution in a bid to try and win over the DeFi users that are sick of high fees on Ethereum so let’s find out more in today’s Tezos news.

StableTech is a Tezos development group that has launched wrapped Ethereum tokens this week and allowed the value of the coin to be transferred to the Tezos blockchain. Tezos targeted DeFi users that were frustrated with the high fees and slow transactions on the ETH network. Tezos welcomed wrapped ETH after the seed funding round back in October that aimed to speed up Defi development and win over the uses before ETH 2.0 is fully operational.

Wrapped tokens already purchased millions worth of value to the ETH blockchain but Tezos is trying a similar strategy by debuting wrapped Ethereum on the Tezos blockchain to get on the DeFi train. ETHtz tokens went live on the Tezos mainnet a few days ago and allow Tezos users to trade native tokens that were pegged to the price of ETH according to the post by Wealthchain CEO Kevin Mehrabi. Wealthchain is also one of the companies that make up StableTech as a group of developers that are dedicated to advancing Defi on the XTZ blockchain.

With exchanges, block explorers, and wallets already running, the addition of wrapped ETH is the latest effort from Tezos to draw Defi activity away from the ETH network into the blockchain as a lower-fee alternative. DeFi on the other hand is a group of blockchain-based apps that replicate or enhance the functions of traditional financial institutions without having to rely on a centralized third party like a bank. Instead, they use automated blocks of code known as smart contracts as a blockchain network to facilitate financial functions such as loan issuances, interest payments, and asset swaps.

Since June 2020, the “Total value locked” in Defi protocols increased from $1 billion to $16 billion according to the data by DeFi Pulse. The TVL measures the value of digital assets that are contributed as collateral and liquidity across the Defi ecosystem which is used to measure the overall size of the budding industry. Wealthchain CEO Kevin Mehrabi said:

“It marks the beginning of a sea change for DeFi. It’s a solution for Etheruem holders to be able to trade ETH without depleting it in outrageous gas fees. It also shows that we’re in it to win it.”