Introduction
Ignition is seeking community support for adding its Wrapped BTC Token, FireBTC (FBTC), to Compound v3 on Ethereum for USDT and ETH borrowing. With FBTC as one of the fastest growing wrapped BTC solutions in the market, integration of FBTC as a collateral asset will drive new synergies between the broader BTC Ecosystem and Compound. Users can also be rewarded with sparks on our ongoing FBTC Points Campaign.
Important Links
- FBTC Website: https://www.fbtc.com
- FBTC Documentation: https://docs.fbtc.com
- FBTC Github: https://github.com/fbtc-xyz
- FBTC Audits: fbtc-contract/audits at main · fbtc-xyz/fbtc-contract · GitHub
- FBTC Contract Address: 0xC96dE26018A54D51c097160568752c4E3BD6C364
- FBTC Proof of Reserve: Bitcoin Reserve Address | FBTC
Motivation
FBTC is a next-generation omnichain wrapped BTC solution designed to tackle key challenges in the current market—particularly in security and yield generation. Since its launch in July, FBTC has quickly gained traction, locking in around 8,624 BTC, equivalent to around $654 million in TVL (per DeFiLlama).
As core contributors to the project, Mantle Network and AntAlpha play crucial roles in FBTC’s development and security architecture. FBTC utilizes a multi-party computation (MPC) custody system, co-signed by Mantle Network, AntAlpha, and other trusted custody providers, ensuring decentralized control and enhanced protection. Additionally, FBTC offers fully transparent reserves and collaborates with top security firms like Palcon to ensure real-time monitoring and reconciliation.
With its strong security backing, transparent operations, and expanding cross-chain capabilities (currently live on Ethereum, Mantle, Arbitrum, BNB Chain and Bob Chain, with plans for Base, Solana, TON and Aptos), FBTC is well-positioned to be a reliable collateral option on Compound V3. Listing FBTC would provide users with a secure, flexible BTC option that integrates seamlessly with DeFi platforms.
Latest stats
- $654M USD TVL (8.6K BTC)
- Live across Ethereum, Mantle, BNB, Arbitrum and BOB Chain
Proposed Markets
- USDT Market
- FBTC Collateral
- ETH Market
- FBTC Collateral
Specification
Detailed explanation of FBTC technical architecture can be viewed here
FBTC on-chain stats can be viewed on DeFillama & Dune (Dune currently doesn’t support Bob chain and hence data is partially missing).
Liquidity
FBTC has >30M USD liquidity across multiple chains.
Slippage: below is the immediately executable size and slippage on ethereum for converting FBTC into USDT
- 70FBTC, 5m, slippage = 0.1%
- 85FBTC, 6m, slippage = 0.26%
- 90FBTC, 6m, slippage = 0.55%
- 95FBTC, 6.1m, slippage = 5.77%
- 97FBTC, 6.1m, slippage = 7.71%
- 99FBTC, 6.1m, slippage = 9.8%
- 100FBTC, 6.1m, slippage = 10.70%
- so currently we have ~6.1m executable liquidity to USDT within 10% slippage
- We aim at increasing to 10-20m supply cap for both ETH and USDT with slippage < 10% to start with
Liquidity supplement
- We are currently in discussions with RFQ platforms, such as Native, to establish firm executable quotes for OTC liquidity and to quantify stablecoin reserves within the on-chain vault. This approach would allow us to provide more reliable, transparent liquidity options and enhance inventory visibility for stablecoins.
- We’re currently working with centralized exchanges to enable the minting and burning of FBTC, aiming to connect BTC liquidity on these exchanges directly to FBTC. This integration would streamline the flow of BTC liquidity between centralized exchanges and the FBTC ecosystem, enhancing accessibility and interoperability.
Withdrawals
To withdraw FBTC, a user initiates a burn request, which triggers the TSS (Threshold Signature Scheme) network to manage the process. This decentralized network, including entities like AntAlpha and Mantle, verifies and approves the request. After burning the FBTC tokens, the equivalent amount of native Bitcoin is released from the custody provider (e.g., Cobo) to the user’s Bitcoin wallet. Throughout the process, FBTC ensures real-time reconciliation and transparency, ensuring the reserves always match the circulating supply. (FBTC Architecture)
Audits and Security
FBTC has gone through significant audits by BlockSec, Mixbytes and Secure3 for our smart contracts and oracles - FBTC Audits
FBTC’s security is ensured through a Multi-Party Computation (MPC) custody system, where multiple trusted entities like AntAlpha, Mantle manage the keys collaboratively, preventing single-point failures. It is further safeguarded by a Security Council, including reputable custodians like Cobo, and a decentralized Threshold Signature Scheme (TSS) network that requires multiple parties to approve all transactions.
Additionally, FBTC provides transparent proof of reserves with real-time reconciliation, ensuring that the circulating FBTC always matches the native Bitcoin held in custody.
Oracles
- FBTC-WBTC - Chronicle Labs
- FBTC-USD - Apro
- Chainlink: we have exchange rate price feed as well as PoR service readily available.
FBTC-BTC Exchange Rate feed is now live on Ethereum as well as Arbitrum
eth: EACAggregatorProxy | Address 0xe5346a4Fd329768A99455d969724768a00CA63FB | Etherscan
arb: 0x84ad1Cb9FDE786c00a77b7539344ad3C66A616f5
Proof Of Reserves
- Chainlink: we also have proof of reserves service provided by Chainlink.
