Summary:
Proposal to add following pool on Arbitrum to the Gauge Controller to enable users to assign gauge weight and mint CRV:
→ tBTC/WBTC
tBTC Bridge launch back in January introduced uncapped minting plus exciting liquidity bootstrapping proposals already approved by Threshold DAO will bring enhanced liquidity and incentives being rolled out on mainnet and different L2s starting with Arbitrum.
References/Useful links:
Link to:
Threshold tBTC Bridge Launch
tBTC Crosschain integration with Wormhole
Threshold Network Site
Documentation
Github Page
Forum
Discord
tBTC Dune Dashboard
Past Proposals :
Proposal to add tBTC/sBTC2 to the Gauge Controller
Migrate [tBTC, [sBTC]] Metapool to a new [tBTCv2, [sBTC]] Metapool
Proposal to remove tBTCv1 gauge
Protocol Description:
tBTC is a trust-minimized, decentralized, scalable Bitcoin bridge that provides a permissionless way for BTC holders to participate in DeFi on Ethereum and the broader DeFi ecosystem. tBTC lets people exchange BTC for tBTC, an ERC-20 token that can be used across the Ethereum DeFi ecosystem. Each tBTC token is fully backed and matched by at least 1 BTC held in reserve.
Existing solutions bringing Bitcoin to Ethereum require you to send your Bitcoin to an intermediary, who then issues you an Ethereum token representing your original asset. This centralized model requires you to trust a third party and is prone to censorship, sacrificing Bitcoin’s promise of secure, permissionless decentralization.
Instead of centralized intermediaries, tBTC uses a randomly selected group of operators running nodes on the Threshold Network to secure deposited Bitcoin through threshold cryptography. That means tBTC requires a threshold majority agreement before operators perform any action with your Bitcoin. By rotating the selection of operators weekly, tBTC protects against any individual or group of operators colluding to fraudulently seize the underlying deposits. By relying on an honest-majority-assumption, we can calculate the likelihood any wallet comprised of a quorum of dishonest operators. An insurance backstop (the coverage pools), serves as an emergency fallback in the event a wallet is compromised.
As of this writing, the existing tBTC Curve pool on Ethereum holds over 10m in TVL and has been incentivized since it was created.
Motivation:
A gauge that earns CRV would boost the liquidity in these pools, and help tBTC bootstrap itself as a major participant in the Curve ecosystem on Arbitrum.
Threshold DAO has recently launched a L2 growth campaign with Wormhole, which has enabled a canonical tBTC bridge to Arbitrum: (Link to Article).
The DAO has budgeted T token bribes to incentivise this tBTC/WBTC pool, with the goal to attract liquidity to the pool and Curve. Threshold DAO intends tBTC to become a core component of Curve BTC liquidity on Arbitrum.
The Curve tBTCv2 pools on Arbitrum and other L2s will be a key part of this huge liquidity driving efforts. Threshold plans in this regard to launch additional pools and products that will drive significant TVL and volume to the Curve ecosystem.
Specifications:
Arbitrum tBTC/WBTC pool requesting a gauge: 0x755d6688ad74661add2fb29212ef9153d40fca46
Gauge to add: 0xd6DAcdCB438f048cF90e53415872cDb3FCC95421
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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.
Provide current information on the protocol’s governance structure. Provide links to any admin and/or multisig addresses, and describe the powers afforded to these addresses. If there are plans to change the governance system in the future, please explain. -
Oracles:
tBTC does not rely on an oracle price feed. -
Audits:
Least Authority: Audit of Keep Network tBTC Bridge v2 - Least Authority
Chainsecurity: Threshold Network Smart Contract Audit - Chainsecurity
Certik: Threshold Network - CertiK Skynet Project Insight
Immunefi Bug Bounty: Threshold Network Bug Bounties | Immunefi -
Centralization vectors:
Threshold Network governance is decentralized, and updates are ratified by the DAO.
tBTC contracts updates are currently managed by the Council multi-sig. -
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 ~700 BTC to collateralize the ~700 tBTC. tBTCv1, launched in September 2020, had also run flawless and without price divergence since then.