Onboard Tbtc
01Summary
Proposal to onboard Threshold Network's tBTC (a decentralized Bitcoin bridge asset) to Aave v3 on Ethereum with specific risk parameters including 73% LTV, 550 tBTC supply cap, 275 tBTC borrow cap, and borrowing enabled.
- Type
- protocol addition
Key changes
- Add tBTC as a new collateral and borrowable asset to Aave v3 Ethereum(high)
- Configure tBTC with 73% LTV and 78% liquidation threshold(high)
- Set supply cap at 550 tBTC and borrow cap at 275 tBTC(high)
- Enable tBTC as flashloanable asset with 0% debt ceiling(medium)
- Set variable borrow rate parameters with 0% base rate, 4% slope 1, and 300% slope 2(medium)
Notable concerns
- High liquidation penalty of 300% variable slope 2 rate for utilization above 45% optimal level
- tBTC is a newly launched asset with reliance on Threshold Network's threshold cryptography security model
Generated by Kvorum
02Description
Simple Summary
The proposal aims to onboard Threshold Network’s tBTC, to the Aave v3 protocol on Ethereum.
Motivation
tBTC is Threshold’s decentralized and permissionless bridge to bring BTC to the Ethereum network. tBTC has been designed to allow Bitcoin holders to participate in Ethereum’s Decentralized Finance (DeFi) applications. Users wishing to utilize their Bitcoin on Ethereum can use the tBTC decentralized bridge to deposit their Bitcoin into the system and get a minted tBTC token in their Ethereum wallet.
tBTC was created by a decentralized effort of contributors at the Threshold Network DAO, and extensively utilizes the Threshold Network’s threshold cryptography to create a secure BTC asset. tBTC is a product launched on Threshold Network, on which many other decentralized applications are being built.
Specification
The table below illustrates the configured risk parameters for tBTC
| Parameter | Value |
|---|---|
| Isolation Mode | false |
| Borrowable | ENABLED |
| Collateral Enabled | true |
| Supply Cap (tBTC) | 550 |
| Borrow Cap (tBTC) | 275 |
| Debt Ceiling | USD 0 |
| LTV | 73 % |
| LT | 78 % |
| Liquidation Bonus | 7.5 % |
| Liquidation Protocol Fee | 10 % |
| Reserve Factor | 20 % |
| Base Variable Borrow Rate | 0 % |
| Variable Slope 1 | 4 % |
| Variable Slope 2 | 300 % |
| Uoptimal | 45 % |
| Stable Borrowing | DISABLED |
| Flashloanable | ENABLED |
| Siloed Borrowing | DISABLED |
| Borrowable in Isolation | DISABLED |
| Oracle | 0xF4030086522a5bEEa4988F8cA5B36dbC97BeE88c |
References
- Implementation: AaveV3Ethereum
- Tests: AaveV3Ethereum
- Snapshot
- Discussion
Copyright
Copyright and related rights waived via CC0.
03Mismatch analysis
The decoded calldata consists of a single generic execute() call to a payload contract address, which is the standard pattern used by Aave governance proposals (via aave-proposals-v3 repo, matching the linked implementation contract path in the description). This top-level call does not expose the granular parameter-setting logic (LTV, LT, caps, rates, oracle address, etc.) that the payload contract executes internally via delegatecall. Because of this, it is not possible to directly verify each specific numeric parameter claimed in the description (73% LTV, 78% LT, 550 supply cap, etc.) against the flat decoded action provided. However, there is nothing in the visible calldata that contradicts the description, the target contract matches the linked implementation for onboarding tBTC, and the pattern (single execute() call to a purpose-built payload) is routine and expected for this proposal type. Given the opacity of the single execute() call, confidence in a full parameter-level comparison is low, but no actual mismatch, extra action, or omission is evident from what is decoded. Overall the proposal appears consistent with its stated purpose (onboarding tBTC to Aave v3 Ethereum), acknowledging that the fine-grained parameter verification requires deeper tracing into the payload contract's internal calls, which is outside the scope of the flat action list supplied.
Generated by Kvorum
04Actions
- Target
- 0x785c…7cba
- Value
- 0 wei
- Function
- fallback()
- Arguments
{}- Calldata
05Tally
Summed from votes
06Voters
No votes recorded yet.
07Forum
No forum thread is confidently linked to this proposal.
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