easoncream.eth

List oBTC as Collateral Asset

Voting ended about 5 years agoSucceeded

A proposal by BoringDAO community, Contact us: info@boringdao.com

Summary

List oBTC as the collateral asset.

For : List oBTC as a collateral asset Against : Do nothing

Background

Launched by: BoringDAO

Backed by: oBTC is backed by BTC in 1:1 ratio

Smart Contract:

oBTC

0x8064d9ae6cdf087b1bcd5bdf3531bd5d8c537a68

BTC P2SH multi-signature contract:

BTC

33ZibwpiZe4bM5pwpAdQNqqs2RthLkpJer

Audited by: PeckShield

oBTC is an ERC-20 token issued by BoringDAO representing a 1-to-1 peg to actual Bitcoin, which can be minted or redeemed by anyone. It is built to unlock the productive value of Bitcoin on the Ethereum network and bring additional collateral to DeFi. Unlike other wrapped versions of Bitcoin, oBTC adopts a triple pledged mechanism (Underlying Bitcoin + Pledged Collaterals + Insurance) that maximizes its safety. What it means is that any oBTC is backed by at least 150% collateralized asset + insurance.

For the securitization of the underlying Bitcoin, we are using a multi-sig wallet that is controlled by the community. On the smart contract layer, oBTC tunnel operators provide wETH, USDT, DAI, BOR, and other ERC-20 Assets as collateral assets. In the instances of black swan events (such as the loss of the underlying Bitcoin), the collateralized assets will be liquidated and used to compensate oBTC holders. Therefore, oBTC holders are 100% asset protected.

For insurance, BoringDAO has partnered with both Cover Protocol and Nsure to provide boringDAO coverage. These decentralized insurance protocols can provide extra protection to the underlying Bitcoin if needed. In summary, every minted oBTC is backed by 1 Bitcoin (100%) + extra ERC-20 asset (50%) + decentralized insurance.

One unique feature that differentiates BoringDAO from other wrapped BTC is that it uses the”OP_Return” feature from Bitcoin wallets to link Users’ BTC address to their Ethereum address. This approach ensures that there is a low risk of single-point failure as we do not use centralized servers.

Motivation

In the 3 weeks since launch, BoringDAO has managed to receive USD25mm TVL and minted 603 oBTC for its users. This exceptional performance has propelled us to the 7th most popular BTC-pegged token on DeBank.

Concurrently, Boring community has also partnered with DODO, Nsure, Bounce and Cover, to add more use cases for oBTC. BoringDAO’s near term goal is to facilitate more oBTC minting by adding more incentives and security measures for our users (expand multi-sig signers from 3 to 5 and integrate with more decentralized insurance protocols).

We believe add oBTC as collateral will be synergistic to both parties. BoringDao will be able to gain wider audience exposure, while C.R.E.A.M can unlock borrowing volume and fees to its holders as it participates in our growth.

Overall, BoringDAO is actively seeking more use cases for oBTC and could bring more users and volume to DeFi protocol.

Benefits for C.R.E.A.M

Bring extra BTC assets and liquidity to C.R.E.A.M.
Provide multiple BTC options for C.R.E.A.M to improve overall robustness.
Establish a channel between oBTC users, making C.R.E.A.M the default lending protocol.

The whole community would love to see oBTC could obtain better liquidity through C.R.E.A.M, so that users would have more usage scenarios. This proposal would bring spread income and incentives to the C.R.E.A.M protocol.