RFP-45: Onboard cbBTC on Base

Abstract

RFP-45 proposes integrating cbBTC (Coinbase Bitcoin wrapper) as a full collateral and borrow market within Radiant Capital's Base deployment.

Motivation

Radiant Capital aims to provide a decentralized platform for lending and borrowing cryptocurrencies, offering users an efficient and secure means to access financing and generate yields. As the DeFi market evolves, expanding the platform's offerings by incorporating new, high-quality assets as collateral and borrowing options is essential.

This new asset will diversify the options available for Bitcoin holders looking to participate in DeFi activities on Radiant. Introducing cbBTC to Radiant will give users more choices for utilizing their Bitcoin holdings, increasing liquidity and engagement within the protocol.

This governance proposal seeks approval to integrate cbBTC as an accepted form of collateral and as a borrowing market within Radiant Capital's Base deployment. This expansion aligns with Radiant Capital's vision of offering its users a comprehensive and diverse set of assets.

Key Terms

• cbBTC - Coinbase wrapped Bitcoin

• Max LTV - The Maximum LTV ratio represents the maximum borrowing power of a specific collateral. For example, if a collateral has an LTV of 75%, the user can borrow up to 0.75 worth of ETH in the principal currency for every 1 ETH worth of collateral.

• Liquidation Threshold - This represents the threshold at which a borrow position will be considered undercollateralized and subject to liquidation for each collateral. For example, if a collateral has a liquidation threshold of 80%, it means that the position will be liquidated when the debt value is worth 80% of the collateral value.

Specifications

• Add cbBTC as a full collateral and borrow market on Base

• Chaos Labs will provide risk parameters as soon as possible.

Steps to Implement

• Chainlink Integration: To list cbBTC, a Chainlink feed for cbBTC must be integrated. This feed will provide accurate, real-time data for the cbBTC token.

• Smart Contract Implementation: Based on the defined parameters, the Radiant team will implement the necessary updates to enable the integration of cbBTC as a collateral and borrow market. This implementation will involve coding and testing the smart contracts to ensure their functionality and security.

• User Interface Update: The Radiant Capital user interface will be updated to reflect the addition of cbBTC as a collateral and borrow market. This includes providing users with the option to select cbBTC as collateral and borrow assets and displaying relevant information such as cbBTC exchange rates, available loan options, and associated risks.

Overall Cost/Impact

Minimal.

Timeline

Integration is expected to occur swiftly, subject to the following stages:

• Local Testing: The Radiant team will conduct thorough testing of the implementation in a local environment to ensure its functionality, security, and compatibility within the Base ecosystem.

• Staging: Following Chainlink Feed integration, the implementation will proceed to a staging phase, where further testing will verify the integrity and functionality of the cbBTC collateral and borrow market.

Voting

• In Favor: Supportive of RFP-45, adding cbBTC to the Base deployment of Radiant

• Against: Against implementation of the RFP-45 proposal

• Abstain: Undecided, but contributing to quorum