Threshold News

As part of TIP-48 (https://forum.threshold.network/t/tip-48-liquidity-bootstrappening-part-3-threshold-dao-x-wormhole/571), a liquidity provider committed to provisioning 25,000 BTC of deposits into the tBTC system. Unfortunately, the liquidity provider has reneged on the agreement, as part of a broader shutdown of their on-chain crypto and DeFi operations. While this is frustrating in the short-term, there is still a clear path forward for aggressively scaling tBTC TVL.

Fortunately, many of the pieces for growth are already in place, including a bond program (https://app.bondprotocol.finance/#/tokens/1/0xcdf7028ceab81fa0c6971208e83fa7872994bee5) to build the DAO’s Bitcoin POL and a proposal (https://boardroom.io/threshold/proposal/cHJvcG9zYWw6dGhyZXNob2xkOm9uY2hhaW46NTI1OTQ3MTM1MDYxMzExNjYxNDI4MDI0OTUyNzAzNjQ3MjMwNzUzMTM0NTA0NDY5ODE1NzkyNzEyMTAzMTIyODI1MTY5MTUzNDczOTk=) for tBTC minting rebates.

For the committed 25,000 BTC liquidity provision, the DAO is exploring alternative liquidity providers. If it isn’t able to secure a satisfactory alternative provider, the T tokens earmarked for the liquidity provider’s warrants (~5% of supply) provide a significant amount of optionality. At the DAO’s discretion, the tokens can be used for a large-scale liquidity mining program to encourage TVL growth. If well-designed, it’s feasible this program could be more capital-efficient than the original TIP-48.

In the short-term, the Treasury Guild intends to focus on building base layer (Ethereum L1) demand, liquidity, and yield opportunities for tBTC, which is critical to growing TVL. This means increased incentives on major stableswap pools and onboarding tBTC as collateral for stablecoins and lending protocols like Ajna (WBTC [https://summer.fi/ethereum/ajna/borrow/TBTC-WBTC#setup] and USDC [https://summer.fi/ethereum/ajna/borrow/TBTC-USDC#setup] pools already live), crvUSD (https://github.com/curvefi/curve-stablecoin/commit/1095e261b9fb9aadedec501a89b2d041bf4a4f00), and thUSD (pending launch).

A tBTC-wBTC pair (https://curve.fi/#/ethereum/pools/factory-crvusd-16/deposit) based on the new Curve stableswap implementation is deployed and will be incentivized pending a gauge approval vote. To help drive incentives on Curve, the Treasury Guild has secured a $500,000 OTC allocation of CRV at $0.40/CRV from Curve founder (and NuCypher cofounder + Threshold Councilmember), Michael Egorov.

Additionally, a tBTC-wBTC stableswap pair on Balancer has been deployed (https://app.balancer.fi/#/ethereum/pool/0xe4e72f872c4048925a78e1e6fddac411c9ae348a0000000000000000000005bc).

The above describes the DAO’s high level strategy. Many of the above priorities fall within the scope and discretion of the Treasury Guild but for anything that requires broader DAO approval, implementation details will be included in followup proposals on the forum.

As the only permissionless path to use Bitcoin in DeFi, tBTC remains… inevitable.

www.tg-me.com/us/Threshold News/com.nucypher_alerts/294

2.3K viewsAug 18, 2023 at 19:54

As part of TIP-48 (https://forum.threshold.network/t/tip-48-liquidity-bootstrappening-part-3-threshold-dao-x-wormhole/571), a liquidity provider committed to provisioning 25,000 BTC of deposits into the tBTC system. Unfortunately, the liquidity provider has reneged on the agreement, as part of a broader shutdown of their on-chain crypto and DeFi operations. While this is frustrating in the short-term, there is still a clear path forward for aggressively scaling tBTC TVL.

Fortunately, many of the pieces for growth are already in place, including a bond program (https://app.bondprotocol.finance/#/tokens/1/0xcdf7028ceab81fa0c6971208e83fa7872994bee5) to build the DAO’s Bitcoin POL and a proposal (https://boardroom.io/threshold/proposal/cHJvcG9zYWw6dGhyZXNob2xkOm9uY2hhaW46NTI1OTQ3MTM1MDYxMzExNjYxNDI4MDI0OTUyNzAzNjQ3MjMwNzUzMTM0NTA0NDY5ODE1NzkyNzEyMTAzMTIyODI1MTY5MTUzNDczOTk=) for tBTC minting rebates.

For the committed 25,000 BTC liquidity provision, the DAO is exploring alternative liquidity providers. If it isn’t able to secure a satisfactory alternative provider, the T tokens earmarked for the liquidity provider’s warrants (~5% of supply) provide a significant amount of optionality. At the DAO’s discretion, the tokens can be used for a large-scale liquidity mining program to encourage TVL growth. If well-designed, it’s feasible this program could be more capital-efficient than the original TIP-48.

In the short-term, the Treasury Guild intends to focus on building base layer (Ethereum L1) demand, liquidity, and yield opportunities for tBTC, which is critical to growing TVL. This means increased incentives on major stableswap pools and onboarding tBTC as collateral for stablecoins and lending protocols like Ajna (WBTC [https://summer.fi/ethereum/ajna/borrow/TBTC-WBTC#setup] and USDC [https://summer.fi/ethereum/ajna/borrow/TBTC-USDC#setup] pools already live), crvUSD (https://github.com/curvefi/curve-stablecoin/commit/1095e261b9fb9aadedec501a89b2d041bf4a4f00), and thUSD (pending launch).

A tBTC-wBTC pair (https://curve.fi/#/ethereum/pools/factory-crvusd-16/deposit) based on the new Curve stableswap implementation is deployed and will be incentivized pending a gauge approval vote. To help drive incentives on Curve, the Treasury Guild has secured a $500,000 OTC allocation of CRV at $0.40/CRV from Curve founder (and NuCypher cofounder + Threshold Councilmember), Michael Egorov.

Additionally, a tBTC-wBTC stableswap pair on Balancer has been deployed (https://app.balancer.fi/#/ethereum/pool/0xe4e72f872c4048925a78e1e6fddac411c9ae348a0000000000000000000005bc).

The above describes the DAO’s high level strategy. Many of the above priorities fall within the scope and discretion of the Treasury Guild but for anything that requires broader DAO approval, implementation details will be included in followup proposals on the forum.

As the only permissionless path to use Bitcoin in DeFi, tBTC remains… inevitable.

BY Threshold News