Proposal for BTC Support on Orbiter One Deployment on Moonbeam Network

Overview

This proposal aims to decide which version of Bitcoin (BTC) should be supported on Orbiter One Lending Protocol operating on Moonbeam Network. The chosen version will serve as collateral and will be available for both supply and borrow functionalities. Additionally, once our Cross-Chain Deposits and Loan Teleporting features are activated, this BTC version will be used for cross-chain interactions with BTC on other chains.

Options

WBTC.wh (Wormhole’s Wrapped WBTC)

Pros:

• Established and widely used in the DeFi ecosystem. • Backed by WBTC, which is pegged 1:1 to Bitcoin.

Cons:

• Bridge Risks: Known as the honey pot risk, WBTC is originally an Ethereum-based asset. This exposes users to potential vulnerabilities associated with cross-chain bridging.

xciBTC (Interlay’s Native BTC on Polkadot)

Pros:

• Native to Polkadot and Moonbeam, ensuring smooth interaction and reduced fees. • No Honey Pot Risk: Being native eliminates the security risks associated with bridging assets from different chains.

Cons:

• Less established compared to WBTC, which could impact liquidity and adoption initially.

Considerations for Future Cross-Chain Features

Whichever BTC version is chosen will also be integrated into our upcoming Cross-Chain Deposits and Loan Teleporting features. The decision should factor in this long-term strategy for Orbiter One.

Conclusion and Voting

This proposal serves as a critical decision point for the future of Orbiter One on Moonbeam Network. The community is urged to weigh the pros and cons carefully, considering both immediate and long-term implications.

To vote, please visit our DAO governance portal.

Thank you for your participation. We are excited to continue building the future of decentralized finance together!