Wrapped Bitcoin is coming to Hiro Developer tools and Stacks Ecosystem this Fall

Becomes tradable as xBTC throughout the DeFi ecosystem on the Stacks network

Coming soon this fall, Stacks users around the world will be able to use native Wrapped Bitcoin across the network, and in parallel, Stacks developers will have access to programmable xBTC with the help of Hiro’s developer tools. Wrapped Bitcoin on Stacks (xBTC), will be fully backed 1:1 with Bitcoin using a qualified custodian.

Wrapping assets immediately offers users and developers more utility: With xBTC, developers will have the security of Bitcoin combined with general purpose smart contracts of Stacks, enabling them to quickly and easily build DeFi applications for the bitcoin ecosystem.

Those who are interested in following along as we get closer to launch can join #xBTC on the Stacks Discord.

“xBTC is the first implementation of a Wrapped Bitcoin on Stacks. Not only is it secured by the premiere custody partner Anchorage, but the token created by Tokensoft is backed by Bitcoin given all Stacks transactions settle on the Bitcoin blockchain. This is the most native and secure implementation of wrapped Bitcoin to date, and we couldn’t be more excited to support it in the Hiro developer tool kit and Stacks ecosystem.”

— Muneeb Ali, Hiro Systems CEO and Co-founder

Over the coming weeks, we’ll be making additional announcements to share progress relating to upcoming security audits as well as news about the first dapps that xBTC will be a part of. Rumor has it there may be some xBTC yield farming around the corner, so stay tuned!

A Stacks primer for new users

Stacks is a layer-1 blockchain that connects to Bitcoin and brings smart contracts and decentralized apps to it. Smart contracts and apps developed on the Stacks platform are natively integrated with the security, stability, and economic power of Bitcoin.

Stacks implements a new mining mechanism called Proof of Transfer (“PoX”). PoX is a consensus algorithm between two blockchains. It uses an established blockchain (in this case Bitcoin) to secure a new blockchain (Stacks). PoX connects to Bitcoin with a 1:1 block ratio, meaning anything that happens on the Stacks blockchain can be verified on the Bitcoin Blockchain. Instead of burning electricity on proof of work, PoX reuses already minted bitcoins as “proof of computation” and miners represent their cost of mining in bitcoins directly.

Mining is required to make the network usable, trustworthy, and secure. Miners verify incoming transactions, participate in the consensus mechanism, and write new blocks to the blockchain.To incentivize mining, miners receive freshly minted Stacks (STX) tokens if they win the bid for becoming the leader of the next round.

Bitcoins used for miner bids are sent to a set of specific addresses corresponding to Stacks (STX) tokens holders that are actively participating in consensus (“Stackers”). Thus, rather than being destroyed, the bitcoins consumed in the mining process go to productive Stacks holders as a reward based on their holdings of Stacks and participation in the Stacking algorithm. Stackers lock up their Stacks (STX) tokens for a certain period of time in this process.

Clarity-powered smart contracts

Clarity is a new language for smart contracts on the Stacks blockchain. The Clarity smart contract language is optimized for predictability and security. Stacks anchors Clarity smart contracts to Bitcoin making it possible for smart contracts to operate based on actions seen on the bitcoin blockchain.

This enables developers to build apps and smart contracts that make the most of Bitcoin’s capital and network.

About Hiro

Hiro makes it easier for developers to build the next generation of smart contracts and decentralized apps. They build developer tools for Stacks, the open-source network which makes Bitcoin programmable. Developers can use Hiro solutions such as Clarinet to test Clarity smart contracts, the Hiro Web Wallet for authentication and transaction signing, CLIs, and much more. To get started, visit Hiro.so.

More about Stacks

Before Stacks, building new features on Bitcoin was a paradox. Bitcoin is secure because it’s stable and resistant to change. It’s secure because it has a very limited scripting language with a small attack surface, and limited space for transactions.

That said, introducing new features to the Bitcoin core protocol is hard and not desirable as these features add complexity.

Stacks solves this with Proof of Transfer, Mining, and Clarity. It’s designed so that builders can benefit from Bitcoin’s properties without modifying Bitcoin itself.

Learn more by visiting stacks.co.

More about Wrapped

Wrapped lets investors use their digital assets to lend, borrow, and trade on all major DeFi platforms. Each wrapped asset is fully-collateralized and held with a qualified custodian.

Are you ready to get wrapped up in something?

🌎 https://wrapped.com/

🐦 https://twitter.com/wrappedfi

✈️ https://t.me/wrappedfi/

⚖️ https://forums.wrapped.com/

Disclaimer

Past performance is no guarantee of future results. If purchasing Wrapped Bitcoin (xBTC), the price should be similar to BTC as xBTC has the exact same economic characteristics of BTC. As a result, the price of xBTC should track BTC most of the time. Be aware, however, because the market for xBTC is different from BTC, there may be times where the price of xBTC does not converge with BTC.

This material is for informational purposes only and is (i) not an offer or solicitation to invest in or buy or sell interests of shares or to otherwise participate in any investment or trading strategy, (ii) not intended to provide accounting information, legal advice, or tax advice or investment recommendations or (iii) not a statement of any kind from Wrapped as to the future performance of any digital asset, financial instrument, or other market or economic measure.

When wrapping or unwrapping, the transaction size is determined by calculating the size of the wrapping or unwrapping transaction when converted to USD as described in more detail at www.wrapped.com. The conversion to USD will occur in reference to the price of the underlying wrapped asset publicly available at www.cryptocompare.com (as primary source) or www.coingecko.com (as secondary source if price is unavailable from primary source) at the time a quote is received requesting the wrapping or unwrapping of the underlying asset.

The information is believed to be current as of the date indicated within these materials. Please consult your own advisers and perform your own due diligence before making any investment decision. Wrapped and/or related entities may have financial interests in or connected with some of the entities and/or publications discussed or mentioned in the material. Certain links provided in the materials are provided for your convenience and do not imply endorsement by Wrapped or related third-party sites or their content.