As Bitcoin on Ethereum exceeded $8 billion, another competitor entered the market

Up to now, Ethereum has a total of 1,73032 bitcoins, which is equivalent to 3.74% of the market value of Ethereum, or 8.2 billion US dollars. Of these, $6 billion only exists as one token: WBTC, also known as Wrapped Bitcoin.

Now, another company hopes to seize the opportunity in this growing market.

A mStable company that calls itself a " stable coin" today launched mBTC, a cryptocurrency linked to the price of stable coins. This is the company's second stablecoin after the company launched mUSD in May.

Bitcoin stablecoin is a cryptocurrency, usually based on Ethereum, which is linked to the price of Bitcoin. Although the value of these stablecoins is as unstable as Bitcoin, their value is always the same as Bitcoin.

They are designed to allow Bitcoin holders to invest their wealth in Ethereum's decentralized financial smart contracts, such as lending agreements and non-custodial exchanges.

Anyone who holds the three Ethereum-based Bitcoin stablecoins, wBTC, RenBTC and sBTC, can make mBTC. And any one of these three tokens can be used to exchange mBTC. Next month, mBTC will join Binance's bBTC.

Bitcoin is a cryptocurrency usually based on Ethereum and is linked to the price of Bitcoin. Although the value of these stablecoins is as unstable as Bitcoin, their value is always the same as Bitcoin.

Bitcoin was born to allow Bitcoin users to invest their wealth in Ethereum's decentralized financial smart contracts, such as lending agreements and non-custodial transactions.

Anyone who holds the three Ethereum-based Bitcoin stablecoins, wBTC, RenBTC and sBTC, can mint mBTC. And any one of these three tokens can be used to exchange mBTC. Next month, mBTC will join Binance's bBTC.

However, if the Bitcoin stablecoin is already available in the Ethereum market, what is the point of mStable?

The company stated that mStable's advantage lies in its structure: its value is linked to all bitcoins.

The company stated in a blog post that if one of the stablecoins crashes, holders of mStable will not lose all their money. Unlike mUSD-based stablecoin companies, mStable claims that it is decentralized and non-custodial, which means users can control their own funds.

In addition, mStable's tokens can earn interest in its applications, just like bank accounts. The agreement automatically calculates interest rates. The website stated that there is not enough data to determine the interest rate of the only liquidity pool on SushiSwap, but its mUSD pool generates a return rate of 50% to 70% per year (note: this number is fluctuating).

mStable was created by James Simpson in 2018. The decentralized protocol launched mUSD in May; so far, users have created about 400 million US dollars in mUSD.