tBTC is now Live on AAVE, while we campaign to #saveWBTC

Threshold Time #23

Author

Mark Rizzn Hopkins
October 01, 2024

Welcome to Threshold Time — a digest of the most newsworthy and exciting developments of Threshold Network.
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NETWORK UPDATES

There’s a ton of updates this go-round, but all of them are pretty bullish milestones. Getting AAVE integration is rather monumental, as is the momentum on our larger #saveWBTC campaign.

Table of Contents

tBTC on AAVE! It’s official!

Big news—Aave, the largest liquidity protocol in DeFi, has integrated tBTC, Threshold’s decentralized Bitcoin bridge. This is a massive step forward in making decentralized Bitcoin access a reality for the broader DeFi ecosystem.

Recently, BitGo’s sudden custody changes for WBTC left protocols scrambling (more on that later in the missive!), highlighting the dangers of centralized solutions. tBTC is a more decentralized alternative, and our collaboration with Aave ensures we’re steering clear of similar risks.

On top of this integration, we’ve proposed that Aave join the Threshold Network as a tBTC node operator and a member of the Threshold Council. This move would further align our protocols, creating a more secure, decentralized Bitcoin lending process.

We’re looking to delegate 40 million T tokens to Aave Chan Initiative to represent the Aave DAO in tBTC’s validation process. And by having Aave on the Threshold Council—a critical body that oversees governance and vetoes malicious proposals—they’ll play a key role in maintaining the security and decentralization of tBTC.

This partnership pushes us closer to our goal: bringing Bitcoin to DeFi in a way that’s decentralized, transparent, and fully permissionless.

#saveWBTC updates: Wildly strong DeFi community support and next steps.

We talked at great length in our newsletter about last month (dig deep into that here!). The campaign is progressing beautifully, and signatures to the petition have eclipsed 20,000, and support from the DeFi community has been overwhelming.

If you recall, Threshold DAO member MacLane Wilkison proposed moving WBTC to our community-owned protocol via minting new T tokens and giving BitGo a large voice in our governance.

Since then, a consortium of heavyweight DeFi players and key WBTC stakeholders have stepped up. They’ve offered to snap up 15% of newly minted T tokens at $0.02 apiece, pouring a cool $33.1 million into the mix. This smooths over any price wobbles for BitGo, giving them the choice to take straight cash or blend it with T tokens—whatever suits them best.

What’s in it for the consortium? Well, these tokens aren’t just sitting pretty; they’re gearing up for action in our Beta Staking program, which means these folks will be right in the thick of it, helping to secure the underlying Bitcoin and spreading out governance a bit more. Plus, several of these key players are about to grab seats on the Threshold Council. Talk about beefing up the brain trust!

It’s quite possibly motivated not just from the grassroots support that has emerged but some of the excellent reporting from Protos. We strongly suggest digging into it if you haven’t yet.

Stay tuned—this merger is just heating up, and we’re all here to see how high this rocket can fly!

Threshold DAO Launches Cross-Chain Native Minting on Arbitrum

Now you can mint tBTC directly on Arbitrum, bypassing Ethereum Layer 1 transactions and enjoying a smoother experience with an enhanced UI.

This seamless integration is driven by an off-chain relayer and the tBTC SDK extension, all part of our strategic expansion across leading Layer 2 networks, including GMX. Specifically for GMX users, we’re rolling out a tailored incentive program: 20,000 ARB + $45k in Threshold’s T tokens are earmarked for those actively minting tBTC on GMX.

But that’s not all—there's a juicy loyalty program for all tBTC liquidity providers. The more liquidity you provide in Curve and Uniswap V3 pools on Arbitrum, the greater rewards you can earn. This includes additional ARB and T token incentives, scaling with your contribution.

Jump into the native minting Dapp on Arbitrum, mint your tBTC, and start claiming your rewards.

Senior Marketing Lead Hired!

Hey! How did this update slip in here?

A warm welcome from myself to myself, the new Senior Marketing Lead! Bringing years of crypto and DAO experience, I’m here to amplify our initiatives like the #saveWBTC campaign and deepen our educational outreach.

In my first month, I’ve focused on generating awareness for key initiatives like the #saveWBTC campaign and supporting our tBTC integration proposal with Aave (as well as hard at work on building a massive educational funnel for tBTC).

Dive into my journey and the exciting road ahead in my only slightly self-indulgent blog post over on Twitter.

AROUND THE DAO

TIP-086: Making tBTC Omnichain with LayerZero Labs

Live now: Discussion.

LayerZero Labs has proposed using their Omnichain Fungible Token (OFT) standard to make tBTC an omnichain asset. This would allow tBTC to expand from 8 to over 80 supported networks, with unified liquidity that eliminates wrapped assets and fragmentation.

The proposal also introduces modular security, allowing Threshold DAO to set up a Decentralized Verifier Network (DVN) for better control over transaction verification. LayerZero Labs is committed to supporting the implementation with engineering resources and a custom tBTC bridge front-end, plus collaboration on growth initiatives like marketing and community events.

TIP-087: 90M T to accelerate tBTC growth, including Base

Live now: Discussion, Governance.

The Treasury Guild has proposed allocating 90M T to boost tBTC adoption, especially on Layer 2 networks like Base, Coinbase’s Layer 2 solution. This initiative follows a successful campaign on Arbitrum and aims to fund direct and indirect marketing activities to expand tBTC’s liquidity and market share, leveraging partnerships with major protocols.

With Coinbase launching cbBTC, the proposal views this as an opportunity, not competition. tBTC could integrate with Coinbase Wallet, collaborating on incentives, liquidity, and marketing for cbBTC/tBTC pairs. The goal is to support seamless tBTC adoption for DeFi users and institutions, including migration from other Bitcoin wrappers.

This initiative capitalizes on market opportunities while entrusting the Treasury Guild with discretion over fund deployment. Regular updates and transparent reporting of used funds will be provided. The snapshot vote passed with 100% in favor, moving the proposal to Governor Bravo for final approval​.

TIP-088: Aave “Handshake” with Threshold

Live now: Discussion.

Big news! As we talked about at the top of the newsletter, tBTC is now listed on Aave—the heavyweight champ of decentralized BTC lending—we're looking to take our partnership to the next level. Why? Because strong bonds between lending platforms and major asset teams are not just nice to have—they’re crucial for new TVL growth.

Here’s what is being proposed:

  • Governance Integration: We want to delegate 40 million T tokens to a node run by the Aave DAO. This gets the Aave community hands-on with tBTC validation and lets them earn staking rewards, beefing up their T treasury.

  • Council Seat for Aave: We're pitching a permanent seat for Aave on the Threshold Council. Given their hefty role in BTC lending, it’s only right they have a say in our network’s upgrades and safety measures.

This move is more than just partnership—it is attempting to weave Aave into the fabric of our governance, ensuring tBTC remains safe and sound under collective watch.

INTERACT WITH THRESHOLDERS

All are meetings are accessible via Discord (except as noted): go to Voice Channels and click on Cryptogarden.

Meeting times can change, so always good to confirm in Events (at the very top of the Discord server’s left navigation).

Integration Guild weekly call: Mondays at 4pm EST
Treasury Guild weekly call: Wednesdays at 8am EST
Weekly Community call: Tuesdays at 11am ET
Marketing Guild monthly call: Tuesdays at 9am EST

ADDITIONAL RESOURCES

WHAT DO YOU THINK?

Got thoughts or feedback on the newsletter? Let us know! Take a quick minute to fill out our survey — your insights are invaluable.

Want to dive deeper? Join us on the Threshold Network discord . To become part of the Threshold Marketing Guild, head over to the #claim-a-role channel, click the emoji, and you’ll unlock access to our guild channels. Check out the Integrations and Treasury guilds while you're there!

Feel free to share your ideas, questions, or just say hi—we're all ears!