Borrowing against Bitcoin often requires wrapping it first, CryptoSlate says
CryptoSlate says borrowers can keep exposure to Bitcoin’s price without selling, but add dependencies on a custodian, the wrapper’s redeemability and the lending protocol avoiding liquidation.
TLDR
CryptoSlate reports that borrowing against Bitcoin can avoid a sale, but the BTC often has to be wrapped first. Borrowers retain exposure to Bitcoin’s price while depending on a custodian to hold the actual BTC, the wrapper to stay redeemable and the lending protocol to avoid liquidation.
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