I’m excited to present the proposal to list tBTC, a decentralized Bitcoin-backed token, on Moonwell’s expanding suite of Core lending markets. This proposal marks an important step toward strengthening Bitcoin liquidity across Moonwell’s protocols and providing users with a truly decentralized alternative to traditional Bitcoin-pegged assets.
This proposal highlights the core features of tBTC, its decentralized design and the value it brings to Moonwell’s lending markets. We warmly invite the community to share their thoughts and feedback, ensuring this initiative supports Moonwell’s overarching mission of making onchain finance secure, accessible and user-friendly for everyone.
General
Token Asset Name: tBTC
A description of the project and the token
tBTC is a gateway between Bitcoin and Decentralized Finance. tBTC provides Bitcoin holders open access to the thriving DeFi ecosystems available cross-chain. tBTC allows you to unlock your Bitcoin’s value to borrow and lend, mint stablecoins, provide liquidity and much more.
Existing solutions that bridge Bitcoin to Ethereum require users to send their Bitcoin to an intermediary, in exchange for an ERC-20 token that represents the original asset. This centralized model requires you to trust a third party and is susceptible to censorship, threatening the premise of Bitcoin as a sovereign, secure, permissionless digital asset.
Instead of centralized intermediaries, tBTC uses a randomly selected group of beta node operators running tBTC nodes on the Threshold Network to secure deposited Bitcoin through threshold cryptography. That means tBTC requires a threshold majority agreement before beta operators perform any action with your Bitcoin.
- tBTC is live on 9 chains beyond Bitcoin.
- 340 tBTC active on Base.
- Native minting on Ethereum and Arbitrum with Base coming in Q1.
- tBTC is the only fully permissionless BTC bridge.
- MCAP sitting at 430m
- Live on Aave with 115m TVL.
- Newly added as a collateral asset for SolvBTC on Base.
Benefits to the Moonwell Community
- Further decentralization and trust minimization in the Moonwell stack.
- Give users further opportunity to earn with their Bitcoin on Base.
- Collaboration with the Threshold Network DAO, opening up co-marketing opportunities to boost Moonwell’s reach.
Resources (Website, Social Media Links, and docs)
- Project: https://www.threshold.network/
- Minting dashboard: https://dashboard.threshold.network/tBTC/mint
- GitHub: https://github.com/keep-network/tbtc-v2
- Docs: https://docs.threshold.network/applications/tbtc-v2
- Audit: https://threshold.network/about#audits
- Immunfi Bug Bounty: https://immunefi.com/bounty/thresholdnetwork/
- Llama Risk Report: https://hackmd.io/@LlamaRisk/tBTC
- CoinMarketCap: https://coinmarketcap.com/currencies/tbtc-token/
- CoinGecko: https://www.coingecko.com/en/coins/tbtc
- Dune: https://dune.com/threshold/tbtc
- Oracle:
- Chainlink Base Pricefeed: 0x6D75BFB5A5885f841b132198C9f0bE8c872057BF
The proposal author’s contact information
Telegram: @getmorebullishh, @citizen42 & @DKAY_101
The relationship between the author of the new market proposal and the token
Ethan - Threshold Network Growth Coordinator
Citizen42 - Threshold Network Contributor
DK - Threshold Network Contributor
Social channel metrics (size, activity, and growth)
X (Twitter):
Discord:
- Threshold Network ✜ - 9.3k followers
Market Risk Assessment
Market cap of the token*
486,822,549 USD
https://dune.com/threshold/tbtc
Total supply*
4,651.88 BTC
https://dune.com/threshold/tbtc
The largest central and decentralized exchanges where the token is listed and its respective liquidity*
| Exchange | Chain | Pool | Total Liquidity ($) |
|---|---|---|---|
| Aerodrome | Base | CL1 TBTC/CBBTC | 1.91M |
| Aerodrome | Base | CL200 TBTC/ETH | 1.98M |
| Aerodrome | Base | sAMM TBTC/cbBTC | 1.26M |
| Aerodrome | Base | vAMM TBTC/WETH | 0.84M |
| Aerodrome | Base | CL200 TBTC/USDC | 0.79M |
Volatility per Gauntlet’s definition Gauntlet - MakerDAO Auction Report (30 days, 90 days, 1 year)
Daily Vol 0.026979440
Monthly Vol 0.161038119
Quarterly Vol 0.336858236
Yearly Vol N/A
Average daily trading volume on CEX and DEX*
Approx. 2m
https://dune.com/gork/tbtc-volume
Gini coefficient and Herfindahl index of token balances*
Gini coefficient: 0.99087
Herfindahl Index: 0.132809
Emission schedule
N/A, tBTC is one-to-one backed by BTC.
Decentralization
List the top 10 token holders, the percentage held by each holder, and tag them if they are known*
- 0x10ac93971cdb1f5c778144084242374473c350da - Aave_v3: AToken - 27.00%
- 0xab13b8eecf5aa2460841d75da5d5d861fd5b8a39 - Mezo: Portal - 17.75%
- 0x3ee18b2214aff97000d974cf647e7c347e8fa585 - Wormhole: TokenBridge - 13.24%
- 0x71518580f36feceffe0721f06ba4703218cd7f63 - Verus Bridge - 5.26%
- 0xbbbbbbbbbb9cc5e90e3b3af64bdaf62c37eeffcb - Morpho_blue: MorphoBlue - 4.15%
- 0xbbbbbbbbbb9cc5e90e3b3af64bdaf62c37eeffcb - Morpho_blue: Morpho - 4.15%
- 0xb7ecb2aa52aa64a717180e030241bc75cd946726 - Curvefi: 2btc_tbtc_wbtc - 3.80%
- 0x3f6ce1b36e5120bbc59d0cfe8a5ac8b6464ac1f7 - BOB Contract - 3.20%
- 0xf9bd9da2427a50908c4c6d1599d8e62837c2bcb0 - Curvefi: crvusd_amm_tbtc - 2.56%
- 0xb4378d4e3528c12c83821b21c99b43336a543613 - Safe_test: Safe_v_4_1 - 1.68%
List all of the privileged roles in the token contract. This can include whitelisted EOAs, Multi-sigs, or DAOs.*
Multi-sigs:
tBTC contracts are secured by the Threshold Council’s 6-of-9 multisig on Ethereum Mainnet. The tBTC bridge includes a 24-hour timelock for any upgrades which is also under Councils supervision ensuring transparency and review time. The Threshold DAO contracts are governed by the Governor Timelock Contract which prioritize security and decentralized control within the community.
| Chain | Address | |
|---|---|---|
| Ethereum | 0x9F6e831c8F8939DC0C830C6e492e7cEf4f9C2F5f | |
| ETH (+Foundation) | 0xf642Bd6A9F76294d86E99c2071cFE2Aa3B61fBDa | |
| Arbitrum | 0x9F6e831c8F8939DC0C830C6e492e7cEf4f9C2F5f | |
| Optimism | 0x7fB50BBabeDEE52b8760Ba15c0c199aF33Fc2EfA | |
| Polygon PoS | 0x9F6e831c8F8939DC0C830C6e492e7cEf4f9C2F5f | |
| Base | 0x518385dd31289F1000fE6382b0C65df4d1Cd3bfC | |
| Solana | 3SUj1ow3EPr4UCi9Bn2jq6hc27PETGX5dN6kcznsVTZD |
Is the token pausable?*
No
Does the token have a blacklist?*
TRM Labs screening.
Smart Contract Risks
Codebase & On-chain Activity
Provide a Github repository for the underlying token contracts*
Provide a test suite with code coverage
Provide in Github repository.
Provide Bassescan/Moonscan/Etherscan links with verified contracts*
Give the age of the token in days*
803 days (as of 10th December 2024)
Provide the number of transactions in the contract to date*
86,310
Security Posture
What audits, if any, were performed? Provide links to the reports if they exist*
Least Authority - Sept 2022 (security-audits/29-Sep-2022-LeastAuthority.pdf at main · threshold-network/security-audits · GitHub)
Least Authority - Aug 2023 (security-audits/29-Aug-2023-LeastAuthority.pdf at main · threshold-network/security-audits · GitHub)
Does the project have an active bug bounty program?*
Yes - Threshold Network Bug Bounties | Immunefi
Provide emergency contacts with their estimated response time/availability.
TG: getmorebullishh, john_packel, citizen42 - all within 24 hours
List additional security and formal verification tools used in the development
Upgradability
| Component | Upgradeable? | Who Controls It? | Notes |
|---|---|---|---|
| ERC-20 tBTC Token | Not Upgradeable | N/A | Immutable, follows ERC-20 standards. |
| BTC Lock/Unlock Logic | Not Upgradeable | N/A | Core logic to ensure BTC-backed 1:1 peg is immutable. |
| Oracle Contracts | Upgradeable | Threshold Council Multisig | Oracles used for price feeds, which affect liquidation and redemptions, can be upgraded. |
| Collateral Contract | Upgradeable | Threshold Council Multisig | Certain aspects of collateral logic may be adjustable, like collateral ratio thresholds. |
| Proxy Contracts | Upgradeable | Threshold DAO + Council Multisig | If proxies are used, they can be upgraded via DAO decisions or Threshold Council multisig. |
| Off-chain Relayers | Upgradeable | DAO Governance | Off-chain components can be swapped or reconfigured. |
| Frontend (App UI) | Upgradeable | Threshold DAO Devs | Frontend apps, like the mint/burn interface, are fully upgradable and not part of on-chain logic. |
| Parameter Adjustments | Upgradeable | Threshold Council Multisig | LTV Ratios, collateralization changes, and fee adjustments are upgradeable via the DAO or council. |
| Governance Contracts | Upgradeable | DAO + Council Multisig | Protocol governance contracts (like proposal logic) can be upgraded. |
Oracle Assessment
Chainlink Price Feed Addresses:
Base: 0x6D75BFB5A5885f841b132198C9f0bE8c872057BF
tBTC is a 1:1 wrapped Bitcoin token on Ethereum. The tBTC token is minted only after the Bitcoin is locked, the system relies on a multi-party custody model (MPC), so no single party controls minting or redemption. Anyone can verify reserves in real time on-chain using Bitcoin and Ethereum explorers. Tools like Dune Analytics and Threshold dashboards give visual transparency on collateralization.
Proof of reserves are shown in: https://tbtcscan.com/
In the period between 1st June 2024 to 10/12/2024, tBTC’s price deviation from BTC was:
Average Deviation: 0.26%
Max Deviation: 1.38%
(Price data extracted from CoinGecko)
