wBTC Mint & Burn

wBTC Mint & Burn refers to the process of creating (“minting”) and destroying (“burning”) Wrapped Bitcoin (wBTC) tokens on the Ethereum network. Each wBTC token is backed 1:1 by real BTC held in custody, ensuring that every minted token corresponds to an equivalent amount of BTC locked up, and every burn reduces that supply accordingly. Key Insights

  1. 1:1 Backing: Minting increases the wBTC supply and requires locking the same amount of BTC as collateral, while burning releases BTC from custody.

  2. Bridging Ecosystems: wBTC allows Bitcoin holders to participate in Ethereum-based DeFi, combining BTC’s liquidity with smart contract functionality.

  3. Supply & Demand Signals: A rise in minting can indicate growing demand for DeFi participation, whereas increased burning may reflect a shift back to native BTC holdings.

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