TIP-240: Add cbBTC and wBTC as collaterals to Overtime

id	Title	Status	Author	Description	Discussions to	Created
TIP-240	Add cbBTC and wBTC as collaterals to Overtime	Vote Pending	Danijel	Add cbBTC (Base) and wBTC (Arbitrum) as collaterals to Overtime	Discord	2025-02-06

Simple Summary

This TIP proposes to add Bitcoin pegged collaterals as natively supported on Overtime

Motivation

The addition of wBTC on Arbitrum and cbBTC on Base as supported collateral types on Overtime sportsbook aims to increase platform volume and attract a broader range of users. Both assets have significant circulating supply on their respective networks—wBTC (~8,000 on Arbitrum) and cbBTC (~7,000 on Base)—indicating potential demand for their utilization beyond simple holding. By allowing users to place bets with these assets, Overtime can tap into the BTC-backed liquidity on L2s, enhancing engagement and expanding its user base.

Specification

wBTC on Arbitrum and cbBTC on Base will be integrated as collateral options for betting on Overtime. Smart contract adjustments will ensure seamless deposit, wagering, and withdrawal functionalities for these assets. New contracts for corresponding liquidity pools will be deployed. Risk parameters and liquidity provisioning mechanisms will be assessed to ensure sustainable integration, mostly matching the current limits on USDC and WETH pools. UI/UX updates will reflect the availability of wBTC and cbBTC as betting currencies.

Optimism wBTC is not initially included due to much lower circulating supply at the time of writing (~1000 wBTC), but pDAO can add it at its discretion if deems that it brings value.

Rationale

Bitcoin-backed assets are among the most liquid and widely recognized tokens in DeFi, yet their utility is often limited to lending and staking. Supporting wBTC and cbBTC on Overtime sportsbook provides a new, practical use case for BTC holders while boosting platform adoption. Arbitrum and Base are key L2 ecosystems with growing user engagement, and enabling BTC-backed betting will likely drive additional traffic, positioning Overtime as a more versatile and competitive sportsbook in the market.

Implementation

N/A

Copyright

Copyright and related rights waived via CC0.

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