[MIP-002] MultiBTC Adoption Proposal

As the volume processed by renBTC reaches over $13B and its total value locked surpasses $1.4B, it is clear that there is a need for a successor to renBTC. Users of Ren, the blockchain bridge affiliated with renBTC, are at risk of losing their money if they do not take immediate action. Ren has warned that the upcoming upgrade to Ren 2.0 may not be compatible with the prior version (Ren 1.0), and has encouraged users to burn their tokens issued by the bridge in return for their underlying assets or risk losing them altogether. This is due to the project's intention to make Ren an open-source and community-controlled project, while also severing all ties with the now-bankrupt Alameda Research.

In light of these events, we propose multiBTC, a Multichains BTC derivative, as an excellent alternative to renBTC, utilizing Multichain's already open source router technology to bridge between BTC and any other chains chosen by the community. We consider our version of multiBTC to be the superior decentralized derivative of BTC, because it will be possible to bridge between the Bitcoin Blockchain and any other chain arbitrarily and thereby offers a redemption mechanism of multiBTC into BTC on Bitcoins L1 in a trustless manner that does not require KYC.

Liquidity:

One of the main challenges that need to be addressed is the initialization of liquidity for multiBTC. To address this, we propose the following steps:

Utilizing Curve:

• multiBTC will be added to a metapool together with sBTC and wBTC. If this is successful, it may eventually be possible to turn it into a basepool, that can be used in conjunction with any other pools to create new metapools. (✓)

• To begin, the Multichain team will add some liquidity to the pool (around 40 BTC) for the sBTC, wBTC, and multiBTC pool. (✓)

• We then need to approach the Curve DAO and need to trigger a Curve DAO vote to whitelist the multiBTC-pool and add the gauge to the Curve Gauge Controller. (vote is currently ongoing under here)

• We will then need to consider whether or not we want to bribe directly or whether or not we want to accumulate strategic CRV or CVX reserves for the MultiDAO treasury that can be used to drive Curve rewards to the multiBTC-pool. We conducted an analysis to review potential bribe strategies for Multichain and MultiDAO.

• Depending on the strategy chosen, the team will either choose bribe values or even accumulate strategic reserves that allow gauge voting for our multiBTC-pool. This will even open up the possibility to drive CRV rewards to other Multichain or MultiDAO-owned Curve pools in the future.

• To incentivize adoption, we propose to start with an initial amount of $30,000 in total per month, the cost of which will be evenly split between Multichain and MultiDAO and deducted before distributing the yield to veMULTI-holders. This would mean a maximum of $15,000 in monthly expenses for MultiDAO.

• We propose a time limit of 6 months for the program.

• A mandatory evaluation that includes a cost-benefit analysis is to be done one month prior to the expiry of the time limit.

• An opinion poll should be conducted no later than 3 months after the start of the programme to make it possible for the community to voice their opinion on the chosen strategy.

• The Multichain Core Team will be responsible for the execution of the strategy.