Coinbase launches wrapped versions of Litecoin and Cardano in its base network

The Exchange announced cbada and CBLTC, New tokenized versions compatible with the ecosystem DEFI on the network Base.

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• Tokens are backed 1: 1 by Ada and LTC in custody of Coinbase.
  
• They will allow us to use Ada and LTC In apps DEFI as Aave and UNISWAP.
  
• cbada It already has USD $ 1.7 million in circulation in just 24 hours.

Coinbase has launched new wrapped versions (Wrapped) Cardano (ADA) and Litecoin (LTC) on your network Base, A layer 2 solution on Ethereum. The measure aims to increase interoperability and facilitate the use of these cryptocurrencies in decentralized finance applications (Defi), As reported by the company in an official announcement through its channels.

The wrapped versions, called CBADA AND CBLTC, They are type tokens ERC-20 that are backed 1: 1 by Ada and LTC in custody through Coinbase. This structure allows users to transfer their currencies from their accounts in the exchange to directions on the network Base, where they automatically become wrapped tokens.

The process of “Wraping” It consists of blocking the original assets, such as Ada either LTC, and issue an equivalent representation in a different network, in this case Ethereum. This allows coins to natively incompatible with certain networks to reach these ecosystems and be used in products and services, for example, in the sector DEFI.

Inversely, when a user sends cbada either CBLTC Back to your account in Coinbase, Tokens redeem again for their original assets, also at a 1: 1 rate. This mechanism is supported by public reserve evidence provided by Coinbase.

Integration with applications DEFI

Thanks to this format, wrapped tokens can be used on platforms DEFI popular like Aerodrome, Uniswap, Aave, Compound and Morpho. This represents a significant step for Cardano and Litecoin, whose native networks are not directly compatible with Ethereum.

Until now, the ecosystem DEFI was dominated by assets like Eth, USDC or WBTC, while coins like ADA and LTC They were largely excluded. With CBADA AND CBLTCthese cryptocurrencies can now generate performance or be used as a guarantee in decentralized loans.

The rise of wrapped tokens

With these new releases, Coinbase adds a total of five assets wrapped in the network Base. CBADA AND CBLTC They follow the recent integration of CBXRP and CBDOGE, And to the pioneer CBBTC, launched in September 2023.

According to the reservation test data of Coinbase, cbada A supply of approximately USD $ 1.7 million in its first 24 hours, while CBLTC It approaches USD $ 1 million. Compared, CBXRP and cbdoge They currently accumulate USD $ 9.8 million and USD $ 2.3 million, respectively. For its part, CBBTC exceeds USD $ 4.9 billion.

However, Wrapped Bitcoin (WBTC), that independently operates to Coinbase, It is still the wrapped token of BTC larger, with a market capitalization of USD $ 13.9 billion.

The network Base, developed by Coinbase and built on Optimism, It has positioned itself as the most active layer 2 network of the ecosystem Ethereum.

This level of activity has become Base on an ideal platform to experiment with new wrapped assets and solutions DEFI accessible. The inclusion of Ada and LTC Not only increases liquidity in Base, but also diversify the options for crypto users.

Implications for the future

The expansion of wrapped assets is a trend that could transform interoperability between networks Blockchain. As more tokens are integrated into ecosystems such as Ethereum Through wrapped versions, access to decentralized financial services is expanded.

The early success of cbada and CBLTC I could drive a Coinbase to continue launching wrapped versions of other cryptocurrencies, consolidating its role as a bridge between networks Blockchains.

The ability to participate in DEFI Without abandoning Coinbase nor depend on centralized exchanges represents a strategic advance for long -term users of Ada and LTC, who can now put their assets to work in a new environment.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain

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