Proposal: Launch cbBTC Market on Ethereum Mainnet and Base

New Markets
1

Summary

As a supporter and user of Compound, I propose launching a cbBTC market on both Ethereum Mainnet and Base network. This initiative aims to expand Compound’s asset offerings by introducing a Bitcoin-backed asset, thereby attracting new users and increasing liquidity.

Motivation

cbBTC (Coinbase Wrapped Bitcoin)

cbBTC is a wrapped version of Bitcoin provided by Coinbase, allowing BTC holders to utilize their assets within the Ethereum ecosystem. Integrating cbBTC into Compound offers several benefits:

  • Asset Expansion: Introduce a Bitcoin-backed asset to Compound, catering to BTC holders interested in DeFi.
  • Increased Liquidity: Attract Bitcoin liquidity to enhance market efficiency.
  • User Demand: Meet the growing demand for Bitcoin-based lending and borrowing options.
  • Cross-Chain Interoperability: Bridge the gap between Bitcoin and Ethereum networks, fostering a more interconnected blockchain ecosystem.

Points of Contact

Proposed Collateral

We propose adding the following assets as collateral for the cbBTC market:

  • USDC (USD Coin)
  • cbETH (Coinbase Wrapped Staked ETH)
  • ETH (Ethereum)
  • wstETH (Lido Wrapped Staked ETH)

Relevant Documents and Links

cbBTC (Coinbase Wrapped Bitcoin)

Next Steps

  1. Community Feedback
  • Solicit input and suggestions from the Compound community regarding the cbBTC market launch.
  1. Market Configuration Feedback from Gauntlet
  • Obtain risk assessments and parameter recommendations for Collateral Factor, Reserve Factor, and Borrowing Limits.
  1. Development by Woof Software
  • Collaborate with Woof Software for market development and integration.
  1. Audit by OpenZeppelin
  • Engage OpenZeppelin to conduct a thorough security audit of the new market.
  1. Deployment by Woof Software
  • Proceed with deployment on both Ethereum Mainnet and Base network after successful audit.

Community Input Requested

We invite the community to provide feedback on the following parameters:

  • Collateral Factor: Suggested initial collateral factor for cbBTC.
  • Reserve Factor: Proposed reserve factor to ensure protocol safety.
  • Borrowing Limit: Maximum allowable borrowing amount for cbBTC.

Thank you for considering this proposal. Your feedback and support are greatly appreciated.

1 Like
2

Hello @gazmagik, thanks for this proposal.

The above links to an empty profile. Seems incorrect.

Just wanted to let you know :pray:

3

Thanks for that! Updated to Jesse Pollak’s X profile.

1 Like