wrapped collateral asset
WBTC
Wrapped Bitcoin is tracked as collateral exposure with issuer, redemption, deployment, and dependency assumptions separated from protocol-level findings.
partialhigh
Exposure
$5.50B
Mapped usage across reviewed markets.
Deployments
5
Ethereum
Controls
4
Issuer, admin, wrapper, and redemption controls.
Market usage
6
Protocol markets referencing this asset.
Asset facts
Typed fields that define the asset risk surface.
NameWrapped Bitcoin
IssuerWBTC merchants and custodian network
Typewrapped
Canonical chainEthereum
BackingBitcoin-backed ERC-20 with merchant and custodian processes outside Ethereum.
RedemptionBurn-and-release through merchant/custodian flows rather than permissionless onchain redemption.
Review statuspartial
Deployments
Canonical chain and cross-chain deployment footprint.
| Chain | Role | Settlement | L2 stage |
|---|---|---|---|
| Ethereum | canonical | Ethereum L1 | Not applicable |
| Arbitrum One | deployment | Ethereum L1 | Stage 1 |
| Base | deployment | Ethereum L1 | Stage 1 |
| OP Mainnet | deployment | Ethereum L1 | Stage 1 |
| Polygon PoS | deployment | Ethereum contracts + validator set | Not documented |
Protocol market exposure
Markets where this asset is accepted as collateral.
| Protocol | Market | Chain | LTV | Liquidation | Supply cap | Borrow cap | Utilization |
|---|---|---|---|---|---|---|---|
| Aave V3 | Ethereum core pool | Ethereum | 78% | 83% | $8.00B | $5.20B | 74.0% |
| Compound III | Ethereum USDC Comet | Ethereum | 79% | 85% | $1.30B | $900.0M | 67.0% |
| Sky / Maker | DAI/USDS backing system | Ethereum | 66% | 72% | $6.00B | $3.80B | 62.0% |
| Uniswap V3 | Major Ethereum pools | Ethereum | 0% | 0% | $2.40B | $0 | 57.0% |
| Wormhole | Bridged asset routes | Ethereum | 0% | 0% | $900.0M | $0 | 64.0% |
| Across | Cross-chain bridge liquidity | Ethereum | 0% | 0% | $640.0M | $0 | 58.0% |
Risk findings
Asset-level assumptions with explicit evidence and outcome text.
| Severity | Dimension | Finding | Outcome | Evidence | Sources |
|---|---|---|---|---|---|
| high | asset issuer | Custodial backing path | Funds can be frozen or redemption can halt. | WBTC relies on off-chain custody and merchant flows for mint and redemption. |
Dependency edges
Issuer, wrapper, backing, bridge, oracle, and protocol paths touching this asset.
| Severity | Direction | Edge type | Dependency path | Analyst label |
|---|---|---|---|---|
| high | inbound | accepts collateral | Aave V3 -> WBTC | Aave V3 Ethereum core pool accepts WBTC as collateral or core liquidity |
| high | inbound | accepts collateral | Compound III -> WBTC | Compound III Ethereum USDC Comet accepts WBTC as collateral or core liquidity |
| high | inbound | accepts collateral | Sky / Maker -> WBTC | Sky / Maker DAI/USDS backing system accepts WBTC as collateral or core liquidity |
| high | inbound | accepts collateral | Uniswap V3 -> WBTC | Uniswap V3 Major Ethereum pools accepts WBTC as collateral or core liquidity |
| medium | outbound | settles on | WBTC -> Arbitrum One | WBTC deployment inherits Arbitrum One chain assumptions |
| medium | outbound | settles on | WBTC -> Base | WBTC deployment inherits Base chain assumptions |
| medium | outbound | settles on | WBTC -> OP Mainnet | WBTC deployment inherits OP Mainnet chain assumptions |
| medium | outbound | settles on | WBTC -> Polygon PoS | WBTC deployment inherits Polygon PoS chain assumptions |
| medium | outbound | depends on | WBTC -> WETH | WBTC liquidation depth depends on ETH and stablecoin markets during stress |
| low | outbound | settles on | WBTC -> Ethereum | WBTC deployment inherits Ethereum chain assumptions |
Blast radius
Highest-severity mapped paths that could propagate asset risk.
| Severity | Direction | Edge type | Dependency path | Analyst label |
|---|---|---|---|---|
| high | inbound | accepts collateral | Aave V3 -> WBTC | Aave V3 Ethereum core pool accepts WBTC as collateral or core liquidity |
| high | inbound | accepts collateral | Compound III -> WBTC | Compound III Ethereum USDC Comet accepts WBTC as collateral or core liquidity |
| high | inbound | accepts collateral | Sky / Maker -> WBTC | Sky / Maker DAI/USDS backing system accepts WBTC as collateral or core liquidity |
| high | inbound | accepts collateral | Uniswap V3 -> WBTC | Uniswap V3 Major Ethereum pools accepts WBTC as collateral or core liquidity |
| medium | outbound | settles on | WBTC -> Arbitrum One | WBTC deployment inherits Arbitrum One chain assumptions |
| medium | outbound | settles on | WBTC -> Base | WBTC deployment inherits Base chain assumptions |
| medium | outbound | settles on | WBTC -> OP Mainnet | WBTC deployment inherits OP Mainnet chain assumptions |
| medium | outbound | settles on | WBTC -> Polygon PoS | WBTC deployment inherits Polygon PoS chain assumptions |
| medium | outbound | depends on | WBTC -> WETH | WBTC liquidation depth depends on ETH and stablecoin markets during stress |
| low | outbound | settles on | WBTC -> Ethereum | WBTC deployment inherits Ethereum chain assumptions |