Proposal to launch: BTC.b
Brief
BTC.b on Avalanche is a token representing BTC on Avalanche that was bridged from the Bitcoin (".b") blockchain via the Avalanche Bridge.
For example, when sending BTC over the bridge to the Avalanche Network, it will appear as BTC.b once the transaction is completed.
Background
The Avalanche Bridge (AB) can be used to transfer BTC from Bitcoin to Avalanche’s C-Chain and vice versa.
When Bitcoin is bridged to Avalanche, it is represented by an ERC20 token on the Avalanche C-chain with the symbol BTC.b. The “.b” indicates that the token was bridged from the Bitcoin network, just as Avalanche Bridge tokens bridged from Ethereum end in “.e”. Each BTC.b token is fully backed by a Bitcoin locked by the bridge enclave application.
Specification / Metrics
- BTC.b token contract can be found on Snowtrace here,
- Bridge enclave application Bitcoin address can be viewed here.
- Proof of reserves are provided by the Chainlink Oracle network: Avalanche Data Feeds | Chainlink Documentation
- BTC.b/wAVAX pair on Trader Joe
- BTC.b/wbtc.e pair on Platypus with ~ USD $ 64M
- BTC.b on BENQI Finance
Rationale
With a nine-figure market cap and massive liquidity of over half a trillion dollars, BTC is the major Web3 economy driver, supported by one of the largest crypto communities. BTC.b brings these potentialities to the Avalanche ecosystem. Currently many DeFi on Bitcoin solutions are arising (e.g. lightning network, BTC stable-backed USD, and so on). Transaction fees on Avalanche are much lower than in the BTC network, which might speed up and bolster operations and volume based on this asset.
As mentioned above, top Avalanche protocols have integrated BTC.b onto their platforms, building out organic circulation.
Nonetheless, currently there is a lack of financial solutions for holders, traders and portfolio managers to properly hedge their BTC.b allocations or use derivatives to set risk-adjusted strategies.
On the other hand, there is no protocol on the entire Avalanche ecosystem allowing the usage of leverage to get exposure to this asset with an efficient capital approach.
In my opinion, by listing perps on BTC.b, EMDX can take advantage of this nascent status of the BTC.b product and be the “first-to-market”, which will grant both economical benefits and strategic business conditions for the protocol in the near future.
Moreover, introducing perps on BTC.b, will open the path to many other financial solutions like structured products or USDC stable-BTC based, that depend on derivatives tools to rebalance prices with market neutral exposure.
Technical Specifications
For technical information you can visit: BTC Avalanche Bridge (AB) FAQ | Avalanche Support
Bridging Bitcoin To Avalanche: A Technical Overview | by Michael Kaplan | Avalanche | Jun, 2022 | Medium
Should we pass this proposal to MGV (Motion Granted for Voting)?
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- No
0 voters
12.08.22 Update:
After been approved on the CMS Phase, the proposal advanced to the MGV (Motion Granted for Voting) stage. Tokenholders can now vote on Snapshot .
14.08.2022 Update:
The Proposal passed the MGV stage and is now ready for implementation.
