Proposal to add eBTC/tBTC to the Gauge Controller

Gauge Proposals
#1

Summary: This proposal, submitted on behalf of BadgerDAO and Threshold, seeks to add the eBTC/tBTC pool’s gauge to the Gauge Controller on the Ethereum network.

References/Useful links:

Protocol Description:

  • eBTC: eBTC is a collateralized crypto asset, soft pegged to the price of Bitcoin and built on the Ethereum network. It is backed exclusively by Lido’s stETH and powered by immutable smart contracts with minimized counterparty risk. Designed to be the most decentralized synthetic Bitcoin in DeFi, eBTC allows anyone in the world to borrow BTC at no cost.
  • tBTC: tBTC is a permissionless wrapped Bitcoin, that is 1:1 backed by mainnet BTC. tBTC is trust minimized and redeemable for mainnet BTC without a centralized custodian.

Motivation:
Incentivizing the eBTC/tBTC pool is essential to provide deep liquidity for both eBTC and tBTC, promoting their usage within the DeFi ecosystem. This will enhance the trading experience for users, ensuring low slippage and high availability for both tokens. Additionally, it will support the broader adoption of decentralized Bitcoin solutions in DeFi, fostering a more robust and diverse ecosystem.

BadgerDAO and Threshold have committed to co-incentivizing the eBTC/tBTC pool to ensure its success and sustainability. This strategic collaboration aims to attract a significant amount of liquidity, thereby enhancing the pool’s depth and efficiency.

Specifications:

  1. Governance:

    • eBTC: eBTC’s Minimized Governance framework is detailed in this forum post. The protocol’s contracts are immutable, with minimal parameters that can be modified via two Timelocks with 2 or 7-day delays. Only parameters that do not violate users’ trust assumptions can be changed.
    • tBTC: tBTC operates on Threshold DAO’s decentralized threshold encryption protocol. Threshold DAO is governed by the network’s work token, T. T token holders govern the DAO via proposals raised to the Threshold forum, which can be raised to a vote via Snapshot, as well as the on-chain Governor Bravo module via Boardroom. In the future, all contract authorities will be passed to the Governor Bravo contract.

  2. Oracles:

    • eBTC: The eBTC Protocol primarily relies on Chainlink for price data and is adding a secondary (fallback) oracle via governance. Details on the Chainlink Oracle setup can be found here.
    • tBTC: tBTC does not rely on an oracle price feed.

  3. Audits:
    eBTC:

  1. Centralization vectors:
  • eBTC: The protocol has no major centralization vectors. Minimal governance is conducted transparently and distributedly, with robust timeclocks and monitoring. Contracts are immutable, and collateral types cannot be changed.
  • tBTC: Threshold Network governance is decentralized, and updates are ratified by the DAO. tBTC contracts updates are currently managed by the Council multi-sig.
  1. Market History: Both eBTC and tBTC have maintained a consistent and tight peg to BTC for most of their history. For the case of tBTC, even though some depegs were observed during its early history, it’s price hasn’t deviated more than 1% for almost a year, making it one of the most stable BTC wrappers in the market:
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#2

Vote posted on-chain:
https://dao.curve.fi/vote/ownership/769
https://crvhub.com/governance/ownership/769
https://vote.convexfinance.com/#/proposal/0x595a745fa1114e4716dfcccbbbf4b01690657846697fe463e46911561c72cb85

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