Proposed by the BoringDAO team
The BoringDAO team proposes adding a [oBTC, [sbtc pool]] Metapool. Adding a oBTC pool will further increase the liquidity of Bitcoin on Ethereum and make it easier to swap between assets.
Hi Everyone, I’m Enki Yan, the project lead for BoringDAO and oBTC. The intention for this post is to (1) introduce oBTC to the Curve community, and (2) source for feedback on the inclusion of oBTC as one of the wrapped BTC variants on the CRV platform.
oBTC is an ERC-20 token issued by BoringDAO representing a 1-to-1 peg to actual Bitcoin, which can be minted or redeemed by anyone. It is built to unlock the productive value of Bitcoin on the Ethereum network and bring additional collateral to DeFi. Unlike other wrapped versions of Bitcoin, oBTC adopts a triple pledged mechanism (Underlying Bitcoin + Pledged Collaterals + Insurance) that maximizes its safety. What it means is that any oBTC is backed by at least 150% collateralized asset + insurance.
For the securitisation of the underlying Bitcoin, we are using a multi-sig wallet that is controlled by the community. On the smart contract layer, oBTC tunnel operators provide wETH, USDT, DAI, BOR and other ERC-20 Assets as over-collateral assets. In the instances of black swan events (such as, the loss of the underlying Bitcoin), the collateralized assets will be liquidated and used to compensate oBTC holders. Therefore, oBTC holders are over-100% asset protected.
For insurance, BoringDAO has partnered with both Cover Protocol and Nsure to provide boringDAO coverage. These decentralized insurance protocols can provide extra protection to the underlying Bitcoin if needed. In summary, every minted oBTC is backed by 1 Bitcoin (100%) + extra ERC-20 asset (50%) + decentralised insurance.
One unique feature that differentiates BoringDAO from other wrapped BTC is that it uses the”OP_Return” feature from Bitcoin wallets to link Users’ BTC address to their Ethereum address. This approach ensures that there is a low risk of single-point failure as we do not use centralized servers.
In the 3 weeks since launch, BoringDAO has managed to receive USD 25M TVL and minted 603 oBTC for its users. This exceptional performance has propelled us to the 7th most popular BTC-pegged token on DeBank.
Concurrently, we have also partnered with DODO, Nsure, Bounce and Cover, to add more use cases for oBTC. Our near term goal is to facilitate more oBTC minting by adding more incentives and security measures for our users (expand multi-sig signers from 3 to 5 and integrate with more decentralized insurance protocols). We believe a Curve pool will be synergistic to both parties. BoringDao will be able to gain wider audience exposure, while Curve can unlock trading volume and fees to its holders as it participates in our growth.
This proposal is to create a [oBTC, [sbtc pool]] Metapool. We would like to offer 3% of total BOR token supply to the pool as incentives to bootstrap liquidity for the first 6 months.
Additional Details on oBTC & BoringDAO can be found here:
Compared with other AMM-based DEXs, Curve’s stablecoin/pegcoin pair has smaller transaction slippage and impermanence losses. oBTC can obtain better liquidity through metapool so that users can use it in more places. We hope this pool will help bring more fees and incentives to the Curve protocol.
BoringDAO & oBTC is fully open source and has been audited by Peckshield. See details here：https://github.com/BoringDAO/boringDAO-contract/blob/master/peckshield-audit-report-boringdao-v1.0rc.pdf
Current oBTC supply：603
BTC on-chain validation:
ETH on-chain validation： https://etherscan.io/token/0x8064d9ae6cdf087b1bcd5bdf3531bd5d8c537a68