Aave

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.