RealT Chief Operating Officer: DeFi's "trustless" feature comes from collateral

RealT Chief Operating Officer David Hoffman talked about the role of Bitcoin (TBTC) on Ethereum and the feedback loop phenomenon in the latest podcast show. Speaking of the trustless nature of DeFi and collateral, he said: "No trust comes from collateral. In order for tBTC to come to Ethereum, Ethereum contracts need ETH collateral. Therefore, for every Ethereum TBTC worth one bitcoin has 150% ETH equivalent to one bitcoin as collateral. "Hoffman went on to emphasize that this has led to Ethereum being used as collateral by Bitcoin, not the other way around.