Summary
This is a proposal for creating a new liquidity market to support BTC for lending and borrowing on the Liqwid protocol.
Project and Token Overview
BTC will be brought through the Wanchain bridge on Cardano. (More information here: BTC, ETH, USDC and USDT come to Cardano | Wanchain )
BTC Market Reasoning
BTC is listed on every CEX/DEX and has the biggest market cap in the crypto space.
It means that if BTC would be sold on a DEX or any CEX, following a bridge back from Cardano to Arbitrum or Wanchain, we are confident that liquidators would find enough liquidity and the slippage would be low because of these arbitrageurs.
Risk Considerations
The Wanchain bridge has been built with IOG and tested successfully. Wanchain is already operating many bridges and did not encounter any ibssue until now. (Website: https://www.wanchain.org/ )
The current bridge is accessible there: https://bridge.wanchain.org/
Suggested BTC Market Parameters
In my opinion we should use the same parameters, as we are already using for ERGO which is also a bridged non-stable token.
Conclusion
JustSomeRandomDude recommends the adoption of this proposal and to add $BTC for supplying and borrowing on Liqwid with the proposed market parameters. In the beginning we should not allow BTC as collateral in the first step.
- Yes I support bridged BTC from Wanchain being added to Liqwid as suppliable and borrowable asset.
- No I do not support BTC being added to Liqwid.