Bitcoin entering Decentralized Finance is quite a pitfall.
Look at WBTC, BTC.b, and renBTC; they are all called "Bitcoin" on the surface, but what is the reality? Some are purely custodial models, where your coins are locked in someone else's vault; some are semi-decentralized, which sound safe but are actually questionable; and others rely on cross-chain bridges to transfer back and forth, leaving you unaware of the path your BTC takes.
Encapsulation ≠ Security. The same BTC, different packaging methods, risks vary tremendously. No matter how good the liquidity is, you must understand the underlying logic - who actually holds your coins? How can redemption be guaranteed? If you don't clarify these issues, you're just gambling.
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MemecoinTrader
· 11h ago
ngl the wrapped btc game is literally just playing russian roulette with different custodians lmao... who's actually watching your keys tho
Reply0
JustHereForAirdrops
· 11h ago
I no longer believe in the trap of manipulating WBTC; who dares to guarantee the redemption?
View OriginalReply0
Anon32942
· 12h ago
Damn, I've been tired of that WBTC trap for a long time. To put it bluntly, it's just handing over your coins to someone else for safekeeping, then calling it "Decentralization", what a joke.
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NotAFinancialAdvice
· 12h ago
Really, you only understand after stepping into this pit. The play with WBTC is tempting in terms of liquidity but the risks are huge.
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Gambling on luck? We've been gambling for a long time, just didn't realize it.
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The seemingly safe wrapped coins are actually just changing shells, the money is still controlled by others.
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Cross-chain transfers back and forth, those who have lost coins understand that feeling.
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If you rush in without understanding the underlying logic, you deserve to be played people for suckers.
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I just want to ask, who can guarantee that these custodians won't rug?
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The price of BTC is the same, but the risks are worlds apart, that's the most frustrating part.
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You need to clarify who holds the coin before taking action.
View OriginalReply0
MetaverseMigrant
· 12h ago
Another "safe" trap, in the end, it still depends on who won't Rug Pull.
Bitcoin entering Decentralized Finance is quite a pitfall.
Look at WBTC, BTC.b, and renBTC; they are all called "Bitcoin" on the surface, but what is the reality? Some are purely custodial models, where your coins are locked in someone else's vault; some are semi-decentralized, which sound safe but are actually questionable; and others rely on cross-chain bridges to transfer back and forth, leaving you unaware of the path your BTC takes.
Encapsulation ≠ Security.
The same BTC, different packaging methods, risks vary tremendously. No matter how good the liquidity is, you must understand the underlying logic - who actually holds your coins? How can redemption be guaranteed? If you don't clarify these issues, you're just gambling.