sCIP#34 - Add mStable BTC Metapool

Summary

This proposal would see the addition of an [mBTC, [sBTC]] Metapool.

Abstract

mStable’s new mAsset, mBTC, unites various Bitcoin-pegged ERC20 tokens. The mBTC token can be minted with wBTC, RenBTC and sBTC, and you can redeem it for those three Bitcoin tokens. mAssets benefit from capped risk, with max-weights and an incoming insurance policy provided by the system token MTA. mBTC would be the second mAsset with a Metapool on Curve, with the [mUSD, [3Pool]] having been an active and relatively high yielding pool over the past few months (https://www.curve.fi/musd), with multiple active derivatives on yEarn.

Motivation

mBTC has been launched for 3 weeks, and has been seeing consistent demand since launch which is set to continue as the system matures. There is an exponentially increasing TVL cap, which is set to expire after 7 full weeks (source: Dune https://explore.duneanalytics.com/dashboard/mbtc).

While there is demand, there are a lack of liquid/efficient markets for mBTC. Having mBTC listed on Curve would provide mStable users with an on-ramp and provide the following for Curve users:

• Another option for yield seekers on Curve
• Increased revenue for sBTC LP holders from a meta pool with a positive growth trajectory
• Increased fee revenue for veCRV holders

Useful links

• Official: https://mstable.org/
• Code: https://github.com/mstable/mstable-contracts
• mBTC contract: https://etherscan.io/address/0x945Facb997494CC2570096c74b5F66A3507330a1
• Documentation: https://docs.mstable.org/
• Forum: https://forum.mstable.org/
• Dune analytics: https://explore.duneanalytics.com/dashboard/mbtc