WBTC: A year in review

Wrapped Bitcoin (WBTC) is an Ethereum-based token pegged to Bitcoin. Like popular stablecoins USDC and TUSD, WBTC is asset-backed, with each outstanding token supported by a requisite number of BTC. WBTC issuance and redemption are managed by WBTC DAO members, which include popular Open Finance projects, Compound, Kyber, Maker, among others. 

Launched in January 2019, WBTC promised to provide Bitcoin-bulls exposure to Ethereum-based Open Finance products, from money markets to non-custodial exchange. However, multiple metrics indicate that WBTC has failed to maintain significant traction. The exact cause, or causes, for this muted adoption are unknown, although historical BTC-WBTC spread data suggests it is not a result of price infidelity.