[TEMP CHECK] Add FBTC to Aave v3 Main Instance on Ethereum

[TEMP CHECK] Add FBTC to Aave v3 Main Instance on Ethereum Author: @ACI Date: 2024-11-01

Summary The proposal aims to onboard Ignition’s FBTC, to the Aave v3 protocol Main Market on Ethereum.

Motivation FBTC is a cross-chain BTC protocol that uses the Threshold Signature Scheme network to enable secure, decentralized Bitcoin scalability across multiple blockchains. By leveraging multi-party computation, FBTC strengthens bridge security, safeguarding user assets and ensuring robust cross-chain interoperability. This setup also integrates a cross-chain hub, allowing seamless BTC transfers while reducing issues linked to Bitcoin L2 growth.

This new asset will broaden opportunities for Bitcoin holders aiming to participate in DeFi on Aave v3. The introduction of FBTC offers users more flexibility in leveraging their Bitcoin, enhancing liquidity and driving increased engagement within the Aave protocol.

With $480M in total value locked (TVL), FBTC is emerging as a compelling solution in Bitcoin bridging, supported by its upcoming Chainlink Oracle integration to accelerate growth across EVM networks. Aave stands to gain significantly as a primary partner in this expansion, following the successful playbook of cbBTC, which quickly scaled through similar collaborative efforts.

Specification Ticker: FBTC

Contract address on mainnet: 0xC96dE26018A54D51c097160568752c4E3BD6C364

Chainlink oracle: upcoming

Project: https://fbtc.com/

Reserves addresses: Bitcoin Reserve Address | FBTC

Proof of Assets dashboard: FBTC proof of assets dashboard

GitHub: GitHub - fbtc-xyz/fbtc-contract

Docs: https://docs.fbtc.com/

Audit: fbtc-contract/audits at main · fbtc-xyz/fbtc-contract · GitHub

Twitter: x.com

Risk Parameters will be provided by Risk Services Providers at the earliest possible and ARFC will be updated with that feedback.

Disclosure The ACI is not directly affiliated with Ignition and did not receive compensation for creation this proposal.

Next Steps If consensus is reached on this [TEMP CHECK], escalate this proposal to the Snapshot stage. If the Snapshot outcome is YAE, this proposal will be escalated to ARFC stage. Publish a standard ARFC, collect community & service providers feedback before escalating proposal to ARFC snapshot stage. If the ARFC snapshot outcome is YAE, publish an AIP vote for final confirmation and enforcement of the proposal Copyright Copyright and related rights waived via CC0.