Author

Chaos Labs

Overview

Chaos Labs supports listing tBTC as a borrowable asset pool on Gearbox’s Ethereum deployment. Below is our analysis and initial risk parameter recommendations.

Technical overview

tBTC is a trustless bridge between Bitcoin and Ethereum, and its token tBTC, backed 1:1 by Bitcoin, is redeemable at any time. 

To mint tBTC, a user deposits BTC into a designated wallet address generated by the Threshold Network. This deposit is monitored by a permissioned group of participants known as Minters, who validate the transaction. The Minters are chosen among the most well-respected protocols in DeFi. Upon approval and after a review by Guardians, a larger group drawn from the ThresholdDAO and the wider DeFi community, the equivalent amount of tBTC is minted on the Ethereum blockchain and transferred to the user's wallet. Conversely, burning tBTC involves the user sending tBTC tokens to a burn address, triggering the release of the corresponding BTC back to the user's Bitcoin address.

While the tBTC-specific Coverage Pool has been sunsetted following a governance proposal, a loss in the underlying assets is now backstopped by the Threshold DAO treasury assets as specified here.

Burning and redeeming the underlying backing of tBTC is expected to take 3 to 5 hours, making it one of the fastest processes among the BTC wrappers available on the market.

Price oracle

• tBTC (0x18084fba666a33d37592fa2633fd49a74dd93a88)

  • Main: Chainlink BTC/USD (0xF4030086522a5bEEa4988F8cA5B36dbC97BeE88c)
    • trusted: True Compatibility:

• Curve LPs with ZERO_PRICE_FEED:

  • tBTC/WBTC (0xb7ecb2aa52aa64a717180e030241bc75cd946726)

• Balancer LP with ZERO_PRICE_FEED:

  • eBTC/WBTC (0xda17f3663c5d04c0b316cfa1a04aa53ebbc8c12c0000000000000000000006e7)

IRM

Parameter	Proposed value
r0	0
r1	1
r2	1.5
r3	20
U1	70
U2	90
isBorrowingMoreU2Forbidden	true

Pool parameters

Parameter	Value
symbol	dTBTCV3
name	tBTC v3
underlying	tBTC
accountAmount	100,000
totalDebtLimit	1,000

Farming contract: Not required.

Quoted tokens

Asset	eBTC	LBTC	PT-LBTC-27MAR2025	PT-corn-eBTC-27MAR2025	pumpBTC	WETH	stETH	USDC
Quota Limit	55	190	190	65	60	180	180	180
minRate	0.05%	0.05%	0.05%	0.05%	0.05%	0.05%	0.05%	0.05%
maxRate	10%	20%	15%	15%	20%	12%	12%	12%

• Compatibility:
  • WBTC
  • Curve LPs tBTC/WBTC, eBTC/LBTC/WBTC, LBTC/WBTC, pumpBTC/WBTC, eBTC/WBTC;
  • Balancer LPs eBTC/WBTC, pumpBTC/WBTC

Parameter	Value
Quota Limit	0
minRate	0.01%
maxRate	0.01%

Credit Managers

tBTC Correlated Tier 1

Parameter	Value
minDebt	6
maxDebt	120
feeInterest	0.15
feeLiquidation	0
liquidationPremium	0.01
feeLiquidationExpired	0
liquidationPremiumExpired	0.01
poolLimit	20000000

Collateral tokens:

Token	LT
eBTC	90%
LBTC	90%
PT-LBTC-27MAR2025	85%
PT-corn-eBTC-27MAR2025	87%
pumpBTC	90%

• Compatibility:
  • WBTC
  • Curve LPs tBTC/WBTC, eBTC/LBTC/WBTC, LBTC/WBTC, pumpBTC/WBTC, eBTC/WBTC;
  • Balancer LP eBTC/WBTC, pumpBTC/WBTC

Parameter	Value
LT	0%

Adapters

• Curve
  • tBTC/WBTC (0xb7ecb2aa52aa64a717180e030241bc75cd946726)
  • eBTC/LBTC/WBTC (0xabaf76590478f2fe0b396996f55f0b61101e9502)
  • LBTC/WBTC (0x2f3bc4c27a4437aeca13de0e37cdf1028f3706f0)
  • pumpBTC/WBTC (0xea659b615b48ec6e2d55cd82fcbe5f43d79aeea0)
  • eBTC/WBTC (0x7704d01908afd31bf647d969c295bb45230cd2d6)
• Uniswap V3
  • tBTC/WBTC 0.01% (0x73A38006d23517a1d383C88929B2014F8835B38B)
  • tBTC/WBTC 0.05% (0xdBAc78BE00503d10ae0074e5E5873a61fc56647c)
  • WBTC/pumpBTC 0.05% (0xf469fbd2abcd6b9de8e169d128226c0fc90a012e)
  • WBTC/LBTC 0.05% (0x87428a53e14d24Ab19c6Ca4939B4df93B8996cA9)
• Pendle
  • eBTC Corn 27Mar Market: 0x2c71ead7ac9ae53d05f8664e77031d4f9eba064b
  • LBTC 27Mar Market: 0x70b70ac0445c3ef04e314dfda6caafd825428221
• Balancer
  • pumpBTC/WBTC (0x2238ab6c8c58473a5e81b86ec352322fb3f5edd80000000000000000000006de)
  • eBTC/WBTC (0xda17f3663c5d04c0b316cfa1a04aa53ebbc8c12c0000000000000000000006e7)

tBTC Correlated Tier 2

Parameter	Value
minDebt	0.3
maxDebt	6
feeInterest	0.15
feeLiquidation	0
liquidationPremium	0.03
feeLiquidationExpired	0
liquidationPremiumExpired	0.03
poolLimit	20000000

Collateral tokens:

Token	LT
eBTC	90%
LBTC	90%
PT-LBTC-27MAR2025	85%
PT-corn-eBTC-27MAR2025	87%
pumpBTC	90%

• Compatibility:
  • WBTC
  • Curve LPs tBTC/WBTC, eBTC/LBTC/WBTC, LBTC/WBTC, pumpBTC/WBTC, eBTC/WBTC;
  • Balancer LP eBTC/WBTC, pumpBTC/WBTC

Parameter	Value
LT	0%

Adapters

• Curve
  • tBTC/WBTC (0xb7ecb2aa52aa64a717180e030241bc75cd946726)
  • eBTC/LBTC/WBTC (0xabaf76590478f2fe0b396996f55f0b61101e9502)
  • LBTC/WBTC (0x2f3bc4c27a4437aeca13de0e37cdf1028f3706f0)
  • pumpBTC/WBTC (0xea659b615b48ec6e2d55cd82fcbe5f43d79aeea0)
  • eBTC/WBTC (0x7704d01908afd31bf647d969c295bb45230cd2d6)
• Uniswap V3
  • tBTC/WBTC 0.01% (0x73A38006d23517a1d383C88929B2014F8835B38B)
  • tBTC/WBTC 0.05% (0xdBAc78BE00503d10ae0074e5E5873a61fc56647c)
  • WBTC/pumpBTC 0.05% (0xf469fbd2abcd6b9de8e169d128226c0fc90a012e)
  • WBTC/LBTC 0.05% (0x87428a53e14d24Ab19c6Ca4939B4df93B8996cA9)
• Pendle
  • eBTC Corn 27Mar Market: 0x2c71ead7ac9ae53d05f8664e77031d4f9eba064b
  • LBTC 27Mar Market: 0x70b70ac0445c3ef04e314dfda6caafd825428221
• Balancer
  • pumpBTC/WBTC (0x2238ab6c8c58473a5e81b86ec352322fb3f5edd80000000000000000000006de)
  • eBTC/WBTC (0xda17f3663c5d04c0b316cfa1a04aa53ebbc8c12c0000000000000000000006e7)

Trade tBTC Tier 1

Parameter	Value
minDebt	0.3
maxDebt	6
feeInterest	0.15
feeLiquidation	0
liquidationPremium	0.04
feeLiquidationExpired	0
liquidationPremiumExpired	0.04
poolLimit	20000000

Collateral tokens:

Token	LT
WETH	90%
stETH	90%
USDC	90%

• Compatibility:
  • WBTC
  • Curve LPs tBTC/WBTC, ETH/stETH

Parameter	Value
LT	0%

Adapters

• Curve
  • tBTC/WBTC (0xb7ecb2aa52aa64a717180e030241bc75cd946726)
  • stETH/ETH (0xdc24316b9ae028f1497c275eb9192a3ea0f67022)
• Uniswap V3
  • tBTC/WBTC 0.01% (0x73A38006d23517a1d383C88929B2014F8835B38B)
  • tBTC/WBTC 0.05% (0xdBAc78BE00503d10ae0074e5E5873a61fc56647c)
  • WBTC/WETH 0.05% (0x4585FE77225b41b697C938B018E2Ac67Ac5a20c0)
  • WBTC/USDC 0.3% (0x99ac8cA7087fA4A2A1FB6357269965A2014ABc35)

Partial liquidation bot

Give PLB of address 0x0f06c2bD612Ee7D52d4bC76Ce3BD7E95247AF2a9 permissions to add collateral, decrease debt and withdraw collateral in "Trade tBTC Tier 1", "tBTC Correlated Tier 1" & "tBTC Correlated Tier 2" CM.

Transaction log

Txs log can be found here Md5 checksum is 612953466ecfe029fe12b7013505b351