Support $wBTC as a deposit currency

Title: Support $wBTC as a deposit currency
Idea(BRC): Discord

BIP by: Hill
Created: 2023-12-19
Status: Community Review

Background

As BendDAO continues to integrate into the BTC ecosystem, an essential component that cannot be overlooked is the $wBTC (Wrapped Bitcoin) asset. The introduction of $wBTC liquidity pool will help to cater to the borrowing needs of our NFT community.

The $wBTC pool would allow NFT holder (including future BTC NFT holders) to borrow against their NFT holdings using $wBTC.

Motivation

  • Enhanced Accessibility : $wBTC pools will enable users to leverage their NFTs including Bitcoin NFTs.
  • Strengthening the Bitcoin and DeFi Connection : By integrating wBTC, BendDAO further cements its position at the intersection of DeFi and Bitcoin ecosystem.

Specifications

BendDAO currently supports two types of deposit assets, ETH and USDT, each with its own independent interest rate calculation. Wrapped Bitcoin ($wBTC) is the first ERC20 token backed 1:1 with Bitcoin. It is suggested that the interest rate of wBTC pool will be follow the setting of the USDT pool.

Base Interest Rate: 7%
Slope1: 8%
Slope2: 100%
Optimal Utilization Rate: 65%
Reserve Factor (Admin Fee): 20%

$BEND Token Incentives: For $BEND token incentives related to the $wBTC pool, a new BIP will need to be initiated to authorize these rewards.

Etherscan: https://etherscan.io/token/0x2260fac5e5542a773aa44fbcfedf7c193bc2c599

  • Yes, support wBTC
  • No.

0 voters