We propose to add TBTC to AAVE for lending and borrowing. TBTC is the first fully decentralized Bitcoin version on Ethereum.
Details about TBTC
tBTC is a decentralized, trustless and insured custody system for Bitcoin that creates TBTC Ethereum ERC-20 tokens, with a 1:1 BTC supply peg. Bitcoin holders who want to spend their BTC on Ethereum and DeFi don’t have to trust custodians, aka signers, because signers must deposit a bond higher than the value of the BTC they hold in custody.
The tBTC system is developed by the Keep Network.
Benefits for AAVE
TVL Growth: Bitcoin on Ethereum is a fast growing category of Assets. Bitcoin has an enormous amount of value and it is important to attract that volume to AAVE and DeFi in general.
Risk Mitigation: TBTC is decentralized and does not have a central point of failure like renBTC or WBTC. Its addition reduces systemic Risk. It supports Point 3 of the AAVE Risk Framework evaluation for adding an Asset (which talks about the risk that centralized assets bring to the AAVE protocol).
Benefits for the general DeFi Community
Bring Optionality to the DeFi Community with a decentralized Bitcoin Exposure.
Decentralized Assets are essential for DeFi to stay “Decentralized”. It is very important to keep that prospective in mind as a lot of liquidity based on Centralized Assets has flown into the DeFi Ecosystem.
Current Liquidity and Availability
Pools available in Uniswap, Mooniswap, Curve and Balancer
tBTC Website: https://tbtc.network/
Developer Resources: https://tbtc.network/developers/