Add cbBTC Market to Moonwell on Base

Summary

I propose the addition of a cbBTC (Coinbase wrapped BTC) market to Moonwell’s Base deployment. This proposal aims to initiate the process of listing cbBTC, allowing the Moonwell community and risk managers like Gauntlet to prepare for its imminent launch. By positioning Moonwell as an early adopter of this significant asset, we align ourselves with Base’s vision of becoming a major hub for Bitcoin DeFi and further catalyzing the growth of the world’s largest onchain economy.

Background

• cbBTC is an upcoming wrapped Bitcoin derivative expected to launch on the Base network very soon.
• It aims to become the dominant Bitcoin variant on Base, replacing WBTC as the trusted solution for Bitcoin DeFi following the announcement of WBTC custodian BitGo’s new ownership structure.
• Jesse Pollak, creator of Base, has emphasized his desire to build a massive Bitcoin economy on the network.

Objectives

1. Initiate the listing process for cbBTC on Moonwell.
2. Prepare the Moonwell community and risk managers for the asset’s launch.
3. Ensure Moonwell is among the first onchain finance apps to support cbBTC on Base.

Benefits to the Moonwell Community

1. Early Adoption Advantage: Position Moonwell as a leader in supporting Coinbase’s onchain initiatives and work to build substantial liquidity for cbBTC early in the asset’s life cycle.
2. Market Diversification: Expand Moonwell’s offerings, introducing the first Bitcoin-based lending market on Moonwell’s Base deployment.
3. Increased TVL and Revenue Potential: Leverage the popularity of Bitcoin collateralization, as evidenced by WBTC’s performance on Moonbeam, which is the largest Moonwell market by TVL on the network.
4. Strategic Alignment: Support Base’s vision of becoming a hub for Bitcoin DeFi and further building out of the onchain economy.

Implementation Roadmap

1. Community Engagement

• Gather feedback and refine the proposal based on community input.
• Update with new information about cbBTC as it becomes available.

2. Preliminary Approval

• Conduct a Snapshot signal vote vote to gauge community support.

3. Risk Assessment

• Engage Gauntlet to perform risk analysis if Snapshot vote is successful and once cbBTC is deployed onchain.
• Develop initial risk parameters based on this assessment.

4. Formal Onchain Proposal

• Submit a Moonwell Improvement Proposal to activate the cbBTC market.
• Incorporate Gauntlet’s recommended initial risk parameters.

Token Details

• Asset Name: cbBTC (Coinbase Bitcoin)
• Network: Base
• Purpose: To serve as a liquid, trusted Bitcoin representation on Base, enabling people to utilize their BTC holdings in the onchain economy.

Additional Information

• Websites:
  • Coinbase: https://www.coinbase.com/home
  • Base: https://base.org
• Social Media:
  • Coinbase: https://x.com/coinbase
  • Followers: 6M
• Base: https://x.com/base
  • Followers: 810k

Proposal Author

• Name: coolhorsegirl
• Email: coolhorsegirl@tally.xyz
• Role: Delegate @ Moonwell
• Relationship with cbBTC: No relationship

Market Risk Factors

As cbBTC is not yet live onchain, we currently lack specific data for traditional risk metrics. However, as a community we recognize the importance of these factors in assessing the asset’s suitability for listing on the Moonwell Protocol. I commit to providing additional market risk information as soon as it becomes available post-launch.

Key metrics will include:

• Market Capitalization
• Total Supply and Circulating Supply
• CEX/DEX Trading Volume and Liquidity Depth
• Oracle Information
• Price Volatility
• Number of Holders
• Distribution of Holdings
• Slippage Analysis on DEXs

Conclusion

While we eagerly await cbBTC’s launch on Base, initiating this proposal now is critical to cementing Moonwell’s position as a leader in the rapidly evolving onchain economy. This proactive approach not only demonstrates our commitment to innovation but also ensures we are fully prepared to integrate cbBTC swiftly and safely once it goes live.

The addition of cbBTC to Moonwell represents more than just another new market—it’s a strategic move that aligns our community with Base and our protocol with the future of Bitcoin DeFi. By being among the first to support cbBTC, we have the opportunity to help shape the landscape of onchain finance and further establish Moonwell as a cornerstone of the Base ecosystem.