tBTC is a decentralized bridge to bring BTC to DeFi.
Team Members and Qualifications:
Threshold was formed by the first-ever decentralized network “merger” between NuCypher and Keep. The founders of NuCypher are MacLane Wilkison and Mikhail Egorov, who later founded Curve Finance. The founder of Keep is Matt Luongo.
Threshold contributors have a track record of shipping multiple Top 100 projects with meaningful adoption, as referenced above. Other projects built by former or current NuCypher/Keep core team members include Fold, Taho Wallet, Curve Finance, Entropy, and Sunscreen.
Unfortunately, new users are limited to two links per post, so URLs intentionally broken.
Do You Acknowledge That Your Team Will Be Subject to a KYC Requirement?:
Requested Grant Size:
750K ARB (Siren)
$10000 per month, denominated in Threshold Network Token (T), for a 12 month period, for a total of $120000.
Bribes on Curve and Balancer via Hidden Hand (and potentially other relevant protocols), to incentivize rapid Bitcoin TVL growth on Arbitrum.
Funding Address Characteristics:
Threshold Treasury Guild 5-of-9 multisig on Arbitrum.
Aggressively grow the TVL of decentralized Bitcoin on Arbitrum, to make the Arbitrum DeFi ecosystem more robust and less reliant on centralized WBTC.
Key Performance Indicators (KPIs):
tBTC TVL (currently ~150 BTC) growth to 600 BTC, or $15M.
How will receiving a grant enable you to foster growth or innovation within the Arbitrum ecosystem?:
A grant will enable us to incentivize tBTC pools on Arbitrum, via Hidden Hand and encourage tBTC TVL and volume growth on Arbitrum. In turn, this will make tBTC an attractive integration target for additional protocols (e.g. lending, derivatives, etc.).
Justification for the size of the grant:
BTC is the largest crypto asset and most pristine collateral. Currently, the Arbitrum DeFi ecosystem is excessively reliant on WBTC (~10,000 BTC TVL), of which the backing BTC is custodied by a central party. This exposes BTC DeFi on Arbitrum to significant counterparty risk.
A highly liquid, permissionless, censorship-resistant alternative will significantly benefit the Arbitrum ecosystem and reduce counterparty risk of BTC DeFi.
To attain this goal, this application is designed to support a long-term tBTC liquidity incentive program, and continue the growth of tBTC on Arbitrum.
The program will run for 12 months (T incentives persist after ARB is fully distributed), with a target to reach a tBTC TVL of 600 BTC.
Threshold DAO currently incentivizes the following Arbitrum pools via Warden protocol:
Curve WBTC-tBTC curve(dot)fi/#/arbitrum/pools/factory-v2-98/deposit
Threshold DAO will migrate our Arbitrum bribe program to Hidden Hand, an Arbitrum native protocol. This will require ~$10k of T token to be bridged to Arbitrum per month, which is an opportunity to create a virtuous flywheel of T incentives driving further tBTC volume and adoption.
To capture this potential, we will create a T/tBTC pool on Arbitrum Balancer, as part of the incentives program.
ARB incentives will be allocated as follows:
- ~35% Balancer tBTC-WETH
- ~25% Balancer WBTC-tBTC
- ~25% Curve WBTC-tBTC
- ~15% Balancer 80T-20tBTC
The grant will be managed by the Threshold Treasury Guild’s Arbitrum multisig.
An Arbitrum grant will enable us to increase the incentives on those pools and potentially expand incentives to other protocols.
ARB incentives will be distributed linearly during the grant period, with a monthly distribution of 250000 ARB for a total of 750000 ARB.
Do you accept the funding of your grant streamed linearly for the duration of your grant proposal, and that the multisig holds the power to halt your stream?
Is the Protocol Native to Arbitrum?:
No, although the tBTC contracts deployed on Arbitrum are native/canonical contracts, not wrapped variants.
On what other networks is the protocol deployed?:
Ethereum, Base, Optimism, Polygon, Solana
What date did you deploy on Arbitrum?:
March 31, 2023 arbiscan(dot)io/tx/0x34004f22f4d206717368f941ddb7d389898240d86568f5bc71131136fd123f4a
TVL metrics: dune(dot)com/threshold/tbtc
Volume metrics: dune(dot)com/sensecapital/tbtc-liquidity
Bridge activity: tbtcscan(dot)com
tBTC is fully deployed and functional. Future enhancements may include:
Migrate to Schnorr signatures, using ROAST/FROST and GJKR RFC 10 (github(dot)com/keep-network/tbtc-v2/pull/601) to avoid the complexities of threshold ECDSA implementations.
Whitelist the canonical Arbitrum bridge to the tBTC minter contract (currently only Wormhole is whitelisted).
Native tBTC minting and redemption from Arbitrum
Is your team prepared to create Dune Dashboards for your incentive program?:
Does your team agree to provide bi-weekly program updates on the Arbitrum Forum thread?
All incentives will happen on-chain, so deployment according to the planned schedule will be verifiable. Progress towards objectives is also verifiable on-chain.
Does your team acknowledge that failure to comply with any of the above requests can result in the halting of the program’s funding stream?: