And just to understand, why the amount of real BTC

Question

And just to understand, why the amount of real BTC

always higher than the wrapped BTC yea?

What causing the gap? And where does the gap goes to?

For eg, I put in 1 BTC into Defichain by wrapping it into dBTC.

I should get back 1 dBTC when I take out from defichain?

Or is it due to the fees charged in defichain when I withdraw?

#blockchain #cryptocurrency #defichain #english

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08.06.2023

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Zachary Chan · Accepted Answer

I think you are confusing a few things with these statements. Defichain does not perform the wrapping or unwrapping. Defichain does not charge in BTC for withdrawal. Everything you do on defichain is with DFI. All fees for all transactions are in DFI. dBTC is a non-native defichain wrapped crypto token, just like dETH, dUSDC, dLTC, etc. In order to maintain the value of any wrapped crypto within the defichain DEX, they are backed by real native tokens. In the current implementation of defichain, Cake Defi is the one that is performing this function. To remove your dBTC from the DEX, you send it to Cake Defi, which will ‘unwrap’ it back to BTC. The two values does not have to match because they are operated by two different entities. The dBTC defichain value is the DEX, which is whatever happens on-chain. The BTC value is the wallet maintained by Cake Defi as the holding for backed dBTC, but Cake Defi as a company has other products and services that use BTC. Maybe there are Cake users that have deposited BTC but not sent them to the DEX yet. Maybe it’s just their way of ensuring that there will always be enough BTC to cover dBTC? Regardless, it only becomes a concern if there is Less BTC than dBTC. As long as there is more, it means every dBTC on the DEX is covered.

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And just to understand, why the amount of real BTC

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