sCIP#15 - [pBTC, [sBTC LP]] Metapool

Summary:

This proposal would create a new Curve BTC metapool. Adding a pBTC/[sBTC/renBTC/wBTC] pool would further increase the liquidity of Bitcoin on Ethereum by enabling opportunities for BTC holders into Ethereum’s DeFi and make it easier to swap between assets.

Abstract:

pBTC is a 1:1 pegged Bitcoin representation on Ethereum. The goal of pTokens is to interconnect a variety of blockchains to enable the fluid movement of assets and contribute to the growth of the DeFi ecosystem. Currently, 9 pTokens bridges are available in production (for reference see: ptokens.io and p.network ).
pBTC is an ERC20-compatible asset pegged 1:1 with Bitcoin that can be minted and redeemed by anyone with an automated, frictionless and fast process.

For adoption to be encouraged, no peg-in or peg-out fee is applied when moving liquidity cross-chain via pTokens at this stage (generating pBTC and redeeming BTC has 0% fee).

While other tokenised BTC tokens (i.e. WBTC, renBTC) are listed on centralized exchanges with their own trading pairs, those orderbooks tend to be illiquid.
pBTC, along with other pTokens, is the first and currently the only wrapped Bitcoin token to be integrated on a centralized exchange as a direct deposit/withdrawal method for the underlying assets (i.e. BTC) (for reference see: https://www.bitfinex.com/posts/548). This means that moving BTC liquidity between CeFi and DeFi (Curve in this case) is effortless when using pTokens.

pBTC is secured by the pNetwork - a progressively decentralized governance layer enabling the cross-chain movement of assets. Full transparency on the cross-chain transactions (including the off-chain components) is guaranteed to anyone interacting with pBTC. More details on the security and on the progressive decentralisation aspects can be read here (
https://medium.com/pnetwork/pnetwork-security-and-progressive-decentralisation-c5552216ca23 ).

Introducing a Curve pBTC metapool would increase the amount of BTC moved to Ethereum, while enabling farming opportunities for pBTC. Additionally, it would increase liquidity for the Curve protocol.

Motivation:

This proposal would like to gauge interest for a pBTC/[sBTC/renBTC/WBTC] metapool within the Curve community.

Adding a pBTC/[sBTC/renBTC/WBTC] metapool would attract more liquidity to Curve and users would be able to swap between multiple BTC on ETH representations.

pBTC’s availability on multiple blockchains represents a further growth opportunity for Curve in terms of volumes. Being the biggest tokenised BTC asset on EOS, pBTC on EOS is growing quickly as the EOS DeFi ecosystem grows. Cross-chain interactions between Ethereum’s and EOS’ DeFi would be facilitated by the existence of the pBTC Curve metapool, that may serve as a delegated trading platform for those order requests that cannot be satisfied by liquidity on EOS.

Additionally, a yield farming initiative for pBTC is currently ongoing, distributing rewards for providing liquidity to the pBTC/WBTC Uniswap liquidity pool (for reference see: steroids.finance). Should a pBTC metapool be added to Curve, the option of moving such an incentives programme would be evaluated by the pNetwork community.

Poll:

https://signal.curve.fi/#/curve/proposal/QmcT7UB2fc3nmqPRNpjXXeqo9geoRShKSxtzpYjeJYDX7s

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Great! pBTC is a great platform, zero fee, and it’s really cool that it exists on both Ethereum and EOS. I’d expect volume here to be great as curve is excellent for trading stables.

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Alice from pNetwork here - happy to answer questions on pBTC if you have any.

The pNetwork team is also available on Telegram.

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