Justin Sun, CEO and founder of Tron, announced measures to strengthen the DeFi ecosystem of that project. They would be related to an alizana with BitGo, a custodial firm based in California and founded in 2013.
In this sense, he explained, the introduction of two tokens related to the main cryptocurrencies will be effective. The first one is Wrapped Bitcoin (WBTC) and the other is a similar version of ETH, recently created by BitGo..
According to the explanations of the two firms, Tron and BitGo, the strategic alliance has a specific objective. It’s about strengthening Tron’s fledgling Decentralized Finance (DeFi) ecosystem.
Tron’s DeFi Ecosystem Seeks Momentum with WBTC
It’s important to put attention on WBTC has played a key role in the development of DeFi on the Ethereum network. The importance of this token is what has made it a very attractive option for Justin Sun in order to strengthen Tron’s DeFi ecosystem.
Sun, who at the time stood out on Ripple, claimed that the introduction of tokens related to the two main cryptos has a focus. In consecuense, “now people will be able to use their BTC / ETH to enjoy all the benefits of Tron’s DeFi ecosystem”He commented.
He also added that to the advantages of using the two main cryptocurrencies, the fees are added. In other words, he explained, “no longer need to spend large sums of GAS to pay fees on Ethereum”, Which are required by that Blockchain network.
This is a “win-win” relationship, both for Tron’s DeFi ecosystem and those who invest in it. In the same way, the BitGo firm will benefit, given the usability of its tokens.
JustSwap with a volume of $ 100 million USD per day
Other announcements from Sun include news related to the decentralized exchange JustSwap. According to Sun’s words, since its birth last August, it has achieved volumes of up to $ 100 million USD daily.
At the time of its release, Tron assured that the JustSwap exchange is part of the strategy to improve its DeFi platform. It is important to note that, on this exchange platform, up to 20 tokens can be traded.
With an extremely versatile Blockchain network, Tron tries to compete with the powerful Ethereum network in the realm of DeFi. For this reason, from the protocols it is developing to the decentralized exchange JustSwap, they are a reflection of this competition.
In fact, JustSwap is a Uniswap mirror of the Ethereum ecosystem. It seeks to become an alternative to this within Tron’s own DeFi.
A strengthened alliance
Among other important aspects, the enthusiasm of the CEOs of both firms, both Tron and BitGo, stands out. The first of them Justin Sun, reiterated that «are excited that the expansion of Tron DeFi will come from a partnership with the industry leader in cross-chain solutions, BitGo”.
The result of this alliance, he asserted, is the participation of WBTC tokens and the version Wrapped of ETH. At the same time, he reiterated that this momentum will allow the Tron ecosystem to become an alternative to Ethereum when it comes to DeFi.
For his part, BitGo CEO Mike Belshe expressed great enthusiasm for the results of this partnership with Tron. Similarly, he highlighted the successes that WBTC has been experiencing, which has been cause and effect of the growth of DeFi.
“Our new strategic alliance with Tron creates even greater opportunities for users to expand to other Blockchains. Thus, they will have the opportunity to tokenize their BTC in the Tron dApp ecosystem, while making transactions at a lower cost and with greater speed “Belshe sentenced.
Could Ethereum be toppled from its rung?
As the news of all the portals related to the world of the Blockchain show, Ethereum is “the king of DeFi”. If the DeFi Pulse estimates are true, the Total Blocked Value (TLV for its initials in English), is about $ 10.4 billion dollars.
Almost all of this staggering amount has been achieved so far in 2020. Although some have questioned the robustness of this DeFi edifice, its impact and scope are hard to deny. Some protocols such as Maker, Uniswamp, Aave and Curve Finance, are the most striking as they accumulate between USD 1 billion and USD 2 billion each.
Faced with these colossal sums, the question fits, Can Ethereum be taken down from its throne? There is no doubt that the aspirations of investors like Justin Sun, is for that to happen.
There are other projects that want their space in the world of decentralized finance. Some of them, like EOS and Tron itself, seem to offer alternative options for DeFi investors.
The truth of all this is that, a business that gives such high profits, hardly remains in the hands of a single firm. Although it seems uphill for some other project to compete with Ethereum in this field of DeFi, in the world of Blockchain everything is possible.
The latter should always be considered, especially if we appreciate the recent growth of Tron. Not only the cryptocurrency of Tron, but also the number of users of its Blockchain services, is expanding.
Data to take into consideration
- The WBTC token is a synthetic representation of Bitcoin. In Tron it is expressed in the form of TRC20 and is equated 1: 1 with BTC.
- The ETH Wrapped token, created by BitGo, is not the same WETH, which is normally used in Ethereum DeFi.
- Tron’s DeFi ecosystem seeks to compete with Ethereum for supremacy in this business of decentralized finance.
- JustSwap, TRON’s decentralized exchange, which is shaping up to be an alternative to Ethereum’s Uniswap, has reached trading volumes of $ 100 million USD daily.
- Some projects like EOS and TRON want to challenge the awesome power of Ethereum in the DeFi world.