Propose to add tBTC v2 as collateral to borrow MIM

💡Idea Discussions
1

Summary

  • Keep and NuCypher recently merged networks to create Threshold Network
  • tBTC v2 is launching on the Threshold Network
  • tBTC v2 is the only decentralized Bitcoin in Ethereum bridged by the Threshold Network
  • Add tBTC v2 as collateral to borrow MIM
  • Set up a Threshold x Abracadabra community AMA to discuss tBTC v2 being added as collateral in Abracadabra

The Proposal

1- This proposal aims to add tBTCv2 as collateral by opening a cauldron (dedicated smart contract) in Abracadabra to enable the borrowing of MIM. The Collateral Ratio could be set at 60-80%, to be defined at a later stage)
2- deployed v2 on silent mode, few communities know about this launch right now. Offering Abracadabra as part of this hidden launch should attract far more liquidity when the mint contract gets fully deployed by early next year.
3- Set up a Threshold x Abracadabra community AMA to discuss tBTC v2 and how our communities can work together.

Benefits

1 - For Abracadabra (Spell Holders): Additional revenue from Cauldron fees.

2 - For the DeFi Ecosystem: Further support the growth of MIM, the decentralized StableCoin of DeFi with decentralized collateral that is censorship-resistant.

3 - For Threshold Network: Provide additional utility for tBTC by participating in the fastest growing decentralized StableCoin

tBTC

The tBTC v2 token is an upgrade from the current v1 token, it is an ERC-20 token created from our upcoming bridging protocol (the tBTC v2 Bridge) on the Threshold Network — the network formed from the merger of Keep Network and NuCypher.

tBTC v2 is an ERC20 token supply pegged 1:1 by BTC and collateralized by a Coverage Pool. The v2 token is live today, and holders of tBTC v1 can upgrade directly through the Keep Dashboard.

When the tBTC v2 Bridge is launched on the Threshold Network after Keep Network’s merge with NuCypher, anyone will be able to mint tBTC v2 simply by depositing BTC. This will be similar to minting tBTC v1, but simpler, cheaper, and with no foreseeable upper limit on minting.

Our v2 tBTC bridge will be as convenient and easy to use as WBTC, but trustless and transparent — unlike anything else on the market. Once the tBTC v2 bridge is released users will be able to mint tBTC v2 directly with BTC. This protocol will have 100x the scalability of the original tBTC v1 protocol. In addition to its intrinsic trustlessness and transparency, tBTC v2 will compete with WBTC when it comes to liquidity, convenience, and speed.

References

Threshold Blog - https://blog.threshold.network/

TBTC Website → https://tbtc.network/

Threshold Network - https://threshold.network/

Technical spec: tBTC: A Decentralized Redeemable BTC-backed ERC-20 Token

Developer documentation: https://tbtc.network/developers/

TBTC github: http://github.com/keep-network/tbtc

Audits

ChainSecurity

Certik

Consensys

Trail of Bits

Sergi Delgado

TBTCv2 token contract

TBTCv2 coverage

5 Likes
2

I would love to see Abracadabra be a part of the tBTC hidden launch. While trustlessness is not at the forefront currently, it will be soon and tBTC is ultimately the most secure and only truly decentralized bridge for Bitcoin. An AMA to explore all of the opportunities between the Abracadabra and Threshold communities would be very informative and is a great exposure opportunity for everyone involved. I look forward to working with the MIM community. 🪄

5 Likes
3

A way for BTC holders to use MIM without selling their BTC, all decentralized - sounds amazing!

An AMA sounds like a good way to learn more and generate some buzz

5 Likes
4

tBTC V2, fully decentralized/trustless (compared to the other BTC bridges; wBTC, renBTC, etc…) would enable it’s users to participate in DeFi with the most secure BTC in the ecosystem by means of it’s Random Beacon.

Would love to hear more about how tBTC would benefit the Abracadabra community.

Would it be possible to do an AMA with the Threshold (Nu/Keep) Team?

4 Likes
5

Great proposal!

Thanks for writing and posting it @evandro.saturnino.

There are clearly many benefits for both communities so I also am in support.

5 Likes
6

+1
Using tBTC to spell some MIM and start leveraging positions is so interesting.
Awesome proposal.

7

Sounds like an excellent collaboration and i’m all in favor!

8

TBTC V2 is an excellent tool to leverage Bitcoin. V2 is set to go live on the Threshold Network very soon, further enhancing this tool with reduced minting fees. This is a perfect opportunity to add TBTCv2 as collateral, bringing icing on the cake with additional Cauldron fees. I really like this proposal.

9

I’m in support of this proposal. I think tBTC v2 can bring a lot of additional capital and investors to the space, and having abacradabra as one of the early places to start using it would be a win-win.

10

A wonderful proposal, and would benefit both communities. It would be great to set up an AMA with both sides to discuss the potential here. I would love to see this happen!