KVORUM
aaveSource: Aave governance v3 · #168

Onboard Tbtc

executedSep 22, 2024, 10:37 AM UTCby570x57ab…2922

01Summary

AISummary by Kvorumclaude-haiku-4-5

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
Contracts0x785c44862ed5026bbe4dcd1f7103b1d30cbf7cba
Generated by Kvorum
model: claude-haiku-4-5
provider: anthropic
profile: anthropic-fast-v1
prompt: v1.0
generated: 2mo ago
Read the description ↗

02Description

301 words

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

ParameterValue
Isolation Modefalse
BorrowableENABLED
Collateral Enabledtrue
Supply Cap (tBTC)550
Borrow Cap (tBTC)275
Debt CeilingUSD 0
LTV73 %
LT78 %
Liquidation Bonus7.5 %
Liquidation Protocol Fee10 %
Reserve Factor20 %
Base Variable Borrow Rate0 %
Variable Slope 14 %
Variable Slope 2300 %
Uoptimal45 %
Stable BorrowingDISABLED
FlashloanableENABLED
Siloed BorrowingDISABLED
Borrowable in IsolationDISABLED
Oracle0xF4030086522a5bEEa4988F8cA5B36dbC97BeE88c

References

Copyright

Copyright and related rights waived via CC0.

03Mismatch analysis

AIMismatch analysis by Kvorumlow confidenceclaude-sonnet-5
Consistent

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
model: claude-sonnet-5
provider: anthropic
profile: anthropic-strong-v1
prompt: v1.0
generated: 2mo ago
Review the decoded actions ↗

04Actions

1 total
#0fallback()chain 0x1
Target
0x785c…7cba
Value
0 wei
Function
fallback()
Arguments
{}
Calldata

05Tally

Summed from votes

Voters0
VP participating0
Outcome (current)—
Current support—

06Voters

0 total

No votes recorded yet.

07Forum

No forum thread is confidently linked to this proposal.