Proposal to add tBTC/cbBTC [Ethereum] to the Gauge Controller

Gauge Proposals
#1

Summary:

Proposal to add gauge support for the tBTC/cbBTC pool on Ethereum.

References/Useful links:

Link to:

Protocol Description:

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.

cbBTC is a new, but already well known centralized wrapped Bitcoin.

Motivation:

This proposal aims to add a veCRV gauge for the Curve tBTC/cbBTC pool on Ethereum.

The recent launch of cbBTC, Threshold considers this pair essential for effective liquidity routing on mainnet, and expects it to attract significant liquidity.

The DAO has budgeted T token bribes to incentivise this pool, with the goal to attract liquidity to the pool and increase the overall liquidity of tBTC on mainnet.

Specifications:

1 Governance:

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.

tBTC contract deployments are currently managed via the Council multi-sig, a 6-of-9 multi sig managed by trusted community members: 0x9F6e831c8F8939DC0C830C6e492e7cEf4f9C2F5f

In the future, all contract authorities will be passed to the Governor Bravo contract.

2 Oracles:

tBTC does not rely on an oracle price feed.

3 Audits:

Links to:

Immunefi Bug Bounty: Threshold Network Bug Bounties | Immunefi

4 Centralization vectors:

Threshold Network governance is decentralized, and updates are ratified by the DAO.

tBTC contract updates are currently managed by the Council multi-sig.

5 Market History:

tBTC is a wrapped BTC token, and is pegged to the price of BTC. Since launch, tBTC’s price has not significantly diverged from that of BTC. tBTC launched in January of 2023, and currently has ~3400 BTC to collateralize the ~3400 tBTC.

The tBTC/cbBTC pool has recently been created.

Link to pool: https://etherscan.io/address/0xae6ee608b297305abf3eb609b81febbb8f6a0bb3

Link to gauge:
https://etherscan.io/address/0xc11b5bad6ef7b1bdc90c85d5498a91d7f19b5806

Value:

The new tBTC/cbBTC pool on Curve is intended to provide effective liquidity routing on mainnet, as well as boost tBTC TVL on Curve by leveraging the launch of cbBTC.

Threshold has allocated T incentives to bootstrap liquidity via incentivised bribes on Warden. Similar programs have successfully bootstrapped tBTC liquidity in the past.

Our goal is to create deep, sticky liquidity on Curve and benefit from existing orderflows. This will serve to increase TVL and volume on Curve.

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