Authors: - Contributor and Threshold Committee member / @Ethan - tLabs Head of Business Development
Date: 2025-05-30
Current ARFC has been updated on 2025-08-19 under Skywards by ACI to reflect latest Risk Service Providers parameters and to proceed with the governance next step.
Summary
This proposal seeks to onboard tBTC to Aave v3 on Base following a successful launch on Mainnet (Aave - Open Source Liquidity Protocol).
As proposals for onboarding assets already onboarded in other Aave instances does not require a TEMP CHECK it is presented as an Aave Request for Comment (ARFC).
Motivation/Background
tBTC is Threshold’s decentralized and permissionless bridge to bring BTC to Ethereum, Base and 7 other chains. Users wishing to utilize their Bitcoin on Ethereum & Base can use the tBTC decentralized bridge to deposit their Bitcoin into the system and get a minted tBTC token in their EVM wallet.
Threshold Network has recently brought direct minting of tBTC to Arbitrum and Base. It is live on Aave, Compound, GMX, EigenLayer, Synthetix, Morpho, Symbiotic and has strong, sticky liquidity to support liquidations.
Following its approval on AAVE 3 Ethereum, tBTC’s initial supply cap was reached within 72 hours, prompting an increase to meet the overwhelming demand and now sits at over 2,200 BTC TVL. This rapid adoption underscores the market’s appetite for trust-minimized BTC solutions in DeFi.
tBTC on AAVE v3 Arbitrum is just lacking an AIP and has already passed on ARFC and relevant risk analysis.
tBTC on Base has a current supply of 116 BTC worth $12M at current price.
Benefits for Aave
High User Demand, since its initial deployment on Aave’s Ethereum market, tBTC reached its initial 500 BTC supply cap within the first week. The cap has been increased multiple times, now sitting at 2200 BTC, highlighting strong user interest. Something we hope to replicate on Base.
Easy, direct onboarding of BTC capital via Threshold’s Base direct minting.
Further decentralization and trust minimisation in the Aave stack.
A range of lending options for those who wish to earn yield on their BTC.
Preferable yields on tBTC through active incentive participation, boosting Aave protocol use, fees and TVL.
Specification
Ticker: TBTC
Contract Address:Base: 0x236aa50979D5f3De3Bd1Eeb40E81137F22ab794b
Chainlink Oracle:Base: 0x6D75BFB5A5885f841b132198C9f0bE8c872057BF
Risk parameters
Risk Parameters have been updated on 2025-08-19 Following the above analysis, we recommend the following parameter settings:
| Parameter | Value |
|---|---|
| Isolation Mode | No |
| Borrowable | Yes |
| Collateral Enabled | Yes |
| Supply Cap | 130 |
| Borrow Cap | 13 |
| Debt Ceiling | - |
| LTV | 73% |
| LT | 78% |
| Liquidation Bonus | 7.5% |
| Liquidation Protocol Fee | 10% |
| Variable Base | 0% |
| Variable Slope1 | 4% |
| Variable Slope2 | 60% |
| Uoptimal | 45% |
| Reserve Factor | 20% |
| Stable Borrowing | Disabled |
| Flashloanable | Yes |
| Siloed Borrowing | No |
| Borrowable in Isolation | No |
Symbol: TBTCBase Contract Address: 0x236aa50979D5f3De3Bd1Eeb40E81137F22ab794b
Useful Links:
Project: https: //www.threshold.network/Minting Dashboard: https://dashboard.threshold.network/tBTC/mintBridge to other Chains: https://portalbridge.com/tbtc-bridge/GitHub: https://github.com/keep-network/tbtc-v2Docs: https://docs.threshold.network/applications/tbtc-v2Audit: AboutImmunfi Bug Bounty: https://immunefi.com/bounty/thresholdnetwork/Llama Risk Report: https://hackmd.io/@LlamaRisk/tBTCTwitter: https://twitter.com/thetnetworkDiscord: https://discord.gg/threshold
Dune: https://dune.com/threshold/tbtc
Disclaimer:
This proposal is powered by Threshold Network. The authors are FREDY (Contributor and Threshold Committee member) and @Ethan (tLabs Head of Business Development)
Next Steps:
Since proposals for onboarding assets already onboarded in other Aave instance does not require a TEMP CHECK it can go straight to an Aave Request for Comment (ARFC).
Publication of this ARFC, collect community and service providers feedback before escalating the proposal to the ARFC Snapshot stage.
If the ARFC Snapshot outcome is positive, publish an AIP vote for final confirmation and enforcement of the proposal.
Copyright:
Copyright and related rights waived under https://creativecommons.org/publicdomain/zero/1.0/
Off-Chain Vote
YAE
890.75K AAVE100%
NAY
0.01 AAVE0%
Abstain
156.39 AAVE0%
Discussion
Timeline
Aug 19, 2025Proposal created
Aug 20, 2025Proposal vote started
Aug 23, 2025Proposal vote ended
Feb 03, 2026Proposal updated