Re-vote notice

The GIP under number 180 was previously approved by vote. However, just before its execution, security checks showed a discrepancy between the Pendle TWAP feeds’ code to be deployed and the versions mentioned in the Watchpug audit report (available at https://github.com/Gearbox-protocol/security/tree/main/audits). Specifically, the code differed in licensing information and comments, which, although not critical, did not meet Gearbox’s security standards.

After that the code in prod & audit reports were updated, including a newer change to contract (PriceToSy pricing method), which changed the addresses of feeds due to Create2 opcode used.

This is the copy of original GIP-180 with updated txn log.

Author

Chaos Labs

Summary

Chaos Labs proposes whitelisting PT-corn-pumpBTC-26DEC2024 and pumpBTC as collateral within the WBTC pool.

Analysis

PT pumpBTC (Corn) pumpBTC Corn is a BTC LRT offered by Corn utilizing pumpBTC as underlying. pumpBTC supply currently accrues points for multiple projects simultaneously, with the Corn-staked version accruing Corn Kernels on top. The substantial amount of incentives add a speculative element to its supply. It is possible to mint pumpBTC on Ethereum through WBTC and FBTC. These assets are then converted into pumpBTC, which is subsequently deposited into Corn by the Pendle contract.

pumpBTC allows instant withdrawals, which charge a 2% fee. As some of the WBTC supply is held in the contract to support the withdrawals, this provides an additional liquidity buffer for liquidations. Setting the liquidation premium at 97% enables the liquidators to route through the instant withdrawals profitably and efficently.

The supply of pumpBTC has recently grown to 3580 pumpBTC, valued at $345M. The Pendle pumpBTC Corn pool currently stands at $137M. This represents a significant portion of the circulating pumpBTC.

Tech specification

Price oracle

• pumpBTC:

  • address: 0xf469fbd2abcd6b9de8e169d128226c0fc90a012e
  • Main oracle: Composite ( Redstone pumpBTC_FUNDAMENTAL * Chainlink BTC/USD). Trusted: false
  • Reserve oracle: Composite( Redstone market pumpBTC/BTC * Chainlink BTC/USD)

• PT pumpBTC (Corn) 26 Dec 2024 parameters:

  • PT address: 0xa76f0c6e5f286bff151b891d2a0245077f1ad74c
  • market address: 0xf8208fb52ba80075af09840a683143c22dc5b4dd
  • Main oracle: Pendle 1800s TWAP with Main WBTC underlying price feed. Trusted: false
  • Reserve oracle: Pendle 1800s TWAP with Reserve WBTC underlying price feed.

• Curve pumpBTC/WBTC

  • Zero price feed

• Balancer pumpBTC/WBTC

  • Zero price feed

Trade WBTC pool

Token	pumpBTC	PT pumpBTC (Corn) 26 Dec 2024
Quota Limit	280	280
minRate	0.05%	0.05%
maxRate	20%	20%

Token	Curve pumpBTC/WBTC	Balancer pumpBTC/WBTC
Quota Limit	0	0
minRate	0.01%	0.01%
maxRate	0.01%	0.01%

Trade WBTC Tier 1 CM

Token	pumpBTC	PT pumpBTC (Corn) 26 Dec 2024
LT	0.9	0.88

Token	Curve pumpBTC/WBTC	Balancer pumpBTC/WBTC
LT	0	0

Trade adapters:

• Curve
  • pumpBTC/WBTC (0xea659b615b48ec6e2d55cd82fcbe5f43d79aeea0)
• Balancer
  • pumpBTC/WBTC (0x2238ab6c8c58473a5e81b86ec352322fb3f5edd80000000000000000000006de)
• Uniswap V3
  • WBTC/pumpBTC 0.05% (0x6F5eC7c65c2744A963064F6d49DF0F4EEa7d7d90)
• Pendle router for market: 0xf8208fb52ba80075af09840a683143c22dc5b4dd

Transaction log

Txs log can be found here Md5 checksum is a06fc9265c8934315306a97a05109c4b