With the steady drumbeat of worrying reports out of crypto markets since the November implosion of FTX/Alameda, we at Threshold are delighted to be the bearers of some truly glad tidings: it’s back-to-work time for BTC in DeFi.
The fall of FTX, the latest in a string of high-profile collapses involving centralized protocols, sent investors into a hard retreat as 2022 drew to a close. But that was then and this is now. We may only be a few weeks into the new year, but even a day is a long time in DeFi.
It’s time to put your Bitcoin back to work.
As any DeFi degen worth their salt knows, good things come to those who don’t wait (too long). Being risk-aware is sensible, of course. But sitting on your Bitcoin indefinitely? Not so much.
True, BTC holders looking to get a head start on the opportunities in the world of Ethereum DeFi do need to tread with some caution given what went down last year. The landscape has changed dramatically since FTX proved once and for all that centralized DeFi exchanges are not just a paradox, they are also fundamentally flawed.
Centralization also proved the Achilles heel of a number of BTC-to-ETH bridges, as a succession of headline-grabbing hacks exposed the dangers of relying on central custodians. Take wBTC, which arrived on the scene during the bull market. While it has rallied a bit lately, confidence was badly shaken last year as weak points in its mechanism were laid bare.
This is because centralized bridges rely on intermediaries to work. By asking users to trust their BTC to a central custodian, they create a point of centralization – and as last year demonstrated, points of centralization are also points of vulnerability.
Then there’s Alameda-controlled renBTC, which was forced into emergency shutdown as a result of the FTX Group’s Chapter 11 proceedings. With the trajectory of a proposed Ren 2.0 still unclear, there is currently no permissionless way to use BTC in DeFi. Millions of dollars in assets are stranded and unable to earn.
The need for a robust, decentralized, permissionless bridge to the future of finance for crypto’s premier collateral – Bitcoin – has never been clearer, or more urgent.
But help is on its way. Starting this month, you’ll be able to earn with your BTC again.
Even better, you’ll be able to do so safely.
In response to the current emergency, Threshold has accelerated the launch of version 2 of its secure, fully decentralized Bitcoin-to-Ethereum bridge to the fastest possible speed – while taking care to prioritize safety and security.
The tBTC v2 protocol is a fully decentralized bridging solution that opens the world of DeFi to Bitcoin holders. Open-source and accessible to all, it offers a secure avenue to Ethereum protected by cryptography and code, not individuals.
The accelerated timetable and phased launch will be achieved as quickly as is possible while still adhering to the rigorous controls and testing needed to ensure that tBTC delivers on the promise of decentralized cross-chain capability at scale.
tBTC is open-source and noncustodial, which means users remain in control of their private keys throughout and their assets are never at risk from unscrupulous actors. And the fact that tBTC is a fully decentralized protocol means there is total transparency at all times.
Threshold is changing the crypto paradigm so your BTC earns for you
Threshold's goal is to change the crypto paradigm, making it possible for the wealth held in Bitcoin to be unleashed across the dynamic and evolving world of Ethereum finance. We are proud to be leading the way, with tBTC now standing as the secure, non-custodial alternative to centralized Bitcoin wrappers.
We know how crucial it is for investors – and for the DeFi ecosystem as a whole – to put our BTC back to work. Of course, no one in crypto can predict exactly what lies around the corner. There will always be surprises, ones that unsettle as well as those that delight. That’s the deal when there are such prizes to be won.
The only sure thing? The best opportunities don’t wait for latecomers.
What can you do in the meantime?
- Remove your coins from centralized exchanges
- Self-custody them in the interim
- Look out for the news that our decentralized alternative has gone live
- Start earning with your BTC again!
Learn more in this short introductory video, and join us in the Threshold Discord, follow Threshold on Twitter or check out our public Github for more information and latest updates.