tBTC on AAVE Smashing Through Supply Caps!

Threshold Time #24

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

#saveWBTC rolls on, AAVE tBTC usage explodes from a total market size of $280,000 the day of launch to $56 million a couple weeks later. All that, and more this month in Network Updates!

Table of Contents

Big Moves for tBTC on AAVE: What You Need to Know

Hey Threshold fam, big news this past month as tBTC has made a splash on AAVE! For those out of the loop, AAVE is the giant in the DeFi lending sphere, and it’s now opened its doors to tBTC. This is huge because it means you can now lend, borrow, and earn with your Bitcoin in a trust-minimized fashion. No middlemen, just you and your crypto.

What’s the Deal with AAVE?

AAVE isn’t just any platform; it’s the DeFi leader known for its deep liquidity and robust lending options. What makes it stand out? It’s like the Swiss Army knife of DeFi: versatile, reliable, and essential to any serious DeFi enthusiast’s toolkit.

Integration Highlights

The integration went live smoothly, and due to high demand, AAVE cranked up the supply cap for tBTC (not just once, but twice!). This adjustment wasn’t just a minor tweak—it was a full-throttle response to how much you all love using tBTC. More cap means more room to maneuver your Bitcoin in DeFi.

A Spotlight on Custody Issues

The recent changes in the Wrapped Bitcoin (WBTC) custody model have highlighted the risks associated with centralized models. Concerns surrounding Justin Sun and BitGo’s transition prompted one of AAVE’s risk providers to recommend a pause on new WBTC loans, underscoring the fragility of custodial solutions. Many DeFi protocols have had to slow down building and divert resources to reassess the risk associated with these upcoming WBTC custodian changes. In contrast, tBTC on AAVE offers a decentralized, trust-minimized alternative, ensuring your Bitcoin stays in your control.

Navigating the Fees and the Fine Print

Now, let’s talk brass tacks—fees. The good news? The Threshold DAO has set the mint fee parameter to zero for now. That means free access to minting tBTC—just cover the gas, and you’re golden. As for using tBTC on AAVE, it’s all about what you’re used to with DeFi platforms: lending earns you interest, borrowing costs you some, and your engagement level dictates your returns.

Why This Matters

In a landscape where concerns about centralized custody models are more relevant than ever, having tBTC on AAVE means your Bitcoin is as safe as it gets. You maintain control, backed by the decentralized security net of Threshold’s cryptography tech.

Get Started

Ready to get your Bitcoin working harder for you? Head over to the Threshold Dashboard to mint your tBTC and dive into AAVE today. Check out the Threshold Docs for the nitty-gritty, or join our Discord to chat with the community.

Your Bitcoin. Your rules. Let’s make the most of it.

tl;dr: tBTC is now rocking it on AAVE with increased caps due to high demand. Zero mint fees, total control, and solid security—what’s not to love? Get in, get active, and let your Bitcoin live its best life.

$150K tBTC Migration Prize Pool: HODL Phase Update

As spooky season casts its shadows, our tBTC migration campaign continues to shine brightly. A few weeks ago, we launched an ambitious initiative with a $150,000 prize pool to incentivize WBTC holders to switch to tBTC, embracing decentralization and self-sovereignty.

Campaign Recap:

  • What’s Happening: WBTC holders have been converting their holdings to tBTC via wbtc.party, supporting a move toward a decentralized future.

  • Prize Details: The $150K reward pool will be shared proportionally among those who migrated their WBTC during the conversion window.

  • Current Phase: We're two weeks into the crucial HODL period following the conversion window. It’s vital to hold your tBTC for one month from your specific migration date to qualify for your share of the rewards.

Hold Steady: For those of you who’ve joined in, remember that maintaining your tBTC holdings for one month post-migration is key to securing your slice of the prize pool. This commitment not only benefits you but also supports the broader mission of reinforcing Bitcoin’s foundational principles of decentralization and autonomy.

Clarification on Holding Period: To clarify, the holding period requirement is to keep your tBTC for one month from your migration date. For example, if you migrated on September 30th, your holding period would have concluded on October 29th. Please ensure you have held on to your tBTC for the full duration required based on your migration date to remain eligible.

What’s Next: While we don't have all the numbers just yet, the enthusiasm and participation rates have been highly encouraging. We look forward to sharing a full report next month on the campaign's outcomes. Keep your tBTC secure until then, and stay tuned for our follow-up, where we'll dive into the results and celebrate your commitment to shaping the future of DeFi!

AROUND THE DAO

TIP-090: Advancing WBTC Decentralization - A Strategic Proposal

Threshold DAO is deep into discussions on TIP-090, a forward-thinking proposal by Matt Luongo that seeks to further decentralize WBTC by integrating it with the Threshold network. This proposal builds on last month’s "let's save WBTC" initiative by MacLane Wilkinson, incorporating insights from ongoing dialogues with BitGo and outlining a comprehensive roadmap for migration and development.

Key Highlights:

  • The proposal envisions transitioning WBTC’s custody from a centralized model to a robust, distributed setup across Threshold’s network, enhancing security and reducing points of failure.

  • It proposes a strategic mint of T tokens to align incentives with BitGo, BitGlobal, and other WBTC stakeholders, bringing them into Threshold’s governance and community framework.

  • The roadmap includes further technological development, such as the implementation of Schnorr signatures and BitVM, to strengthen the decentralized finance infrastructure.

Continued Discussion and Nuance:

  • There’s significant nuance in the ongoing discussions, particularly around the terms of decentralization and the specifics of stakeholder integration.

  • DAO members are encouraged to dive into the forum thread to fully grasp the complexities and contribute to shaping the proposal. Read the full proposal and join the discussion here.

Engagement and Participation:

  • This is a crucial time for community input as the proposal not only aims to transform WBTC’s operational structure but also to integrate significant DeFi stakeholders into Threshold’s operational and governance layers.

  • Your insights and engagement are essential as we refine this pivotal initiative. Explore detailed community feedback and add your voice.

TIP-083: New Intern Role Approved!

We're thrilled to announce that the Threshold DAO community has unanimously approved the hiring of a new intern, Diddy (@badc_23), who will be joining our team to boost our operational capabilities. This new role is set to enhance our marketing and integration efforts, ensuring that Threshold’s initiatives continue to develop smoothly and efficiently.

Strategic and Cost-Efficient Hiring:

  • Affordable Expertise: In response to community discussions about cost efficiency, Diddy will be joining us at a lower hourly rate, reflecting our commitment to fiscal responsibility while still expanding our team's capacity.

  • Role Impact: This strategic addition aims to fill crucial gaps in our operations, allowing us to maintain and expand our reach in the DeFi space without significantly increasing overhead costs.

The community's strong support for this proposal underscores our collective commitment to enhancing our organizational strength and efficiency in a cost-effective manner.

TIP-089: Seeking Your Input on Hiring a thUSD Product Marketing Lead

We're considering a new role to lead thUSD's marketing and product strategy and need your insights! The proposal is currently open for discussion on the Threshold forums.

What’s Involved: The role involves developing marketing strategies and leading go-to-market efforts for thUSD, in close collaboration with the thUSD Steering Committee and broader DAO community.

Current Status: The discussion is live, and we encourage all community members to participate before we move to the snapshot voting phase.

Get Involved: Share your thoughts and feedback on the Threshold Network forums to help us refine this critical role. Your input is crucial as we shape the future of thUSD together!

TIP-091: Exploring Partnership with Anthias Labs for Enhanced Risk Management

Threshold DAO is assessing a proposal for a three-month engagement with Anthias Labs to augment risk management capabilities, focusing on new partnerships and integrations for tBTC and thUSD.

Proposal Overview:

  • Purpose: Anthias Labs would provide risk assessments, monitor key metrics, and aid in strategic integrations, ensuring our expansions are secure and beneficial.

  • Scope: The focus is on bolstering the due diligence process for external partnerships to protect and enhance our network's integrity.

Discussion Points for the Community:

  • Value Alignment: Reflect on how Anthias Labs' expertise could complement our existing risk management efforts and contribute to our strategic objectives.

  • Investment Rationale: Consider the proposed expenditure in light of the potential to improve our platform's resilience and stakeholder confidence.

  • Collaborative Approaches: Think about the benefits of having external expert assessments in ensuring thorough evaluations of new partnerships.

Invitation to Engage: Your perspective is crucial. Please review the details of the proposal and share your thoughts on how best to integrate external expertise into our risk management framework. Review the proposal and participate in the discussion here.

Join Threshold at Devcon and Beyond: Innovate and Collaborate with Us!

This November, the blockchain community gathers for Devcon, Ethereum’s premier event, from November 12th to 14th. It's a cornerstone week for developers, innovators, and leaders across the Ethereum ecosystem. Threshold is thrilled to participate and highlight key events where we’re making an impact.

Devcon Main Event Highlights Catch the main stage action from November 12th - 14th. Expect a robust lineup of speakers, engaging panels, and a showcase featuring sponsors and booths—all crafted for a developer-centric audience. It’s the perfect place to see the future of Ethereum unfold.

Spotlight on Encode Club Hacker House (with $$$$ prizes!) As a significant side event and a staple at major conferences, the Hacker House is where Threshold shines. We’re back as sponsors, focusing on practical applications with our tBTC SDK and orchestrating a spirited 2-day hackathon. It’s your chance to dive deep into code and innovation with us.

ETH Global Bangkok: Closing Out a Stellar Week Our commitment continues at Eth Global Bangkok, where Threshold’s spirit of support and collaboration flourishes. After Devcon, join us to round off a week of intensive networking and development. Notably, Nico will hack away as a participant, while Ryan guides as a mentor, showcasing our deep involvement in nurturing the Ethereum community.

Connect With Us:

We’re excited to share this journey with you—stay tuned for updates, insights, and tales from these events!

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?

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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!