tBTC is Taking Bitcoin Cross-Chain with Wormhole

tBTC is Taking Bitcoin Cross-Chain with Wormhole

Threshold Network
Threshold Network

Threshold DAO Approves Incentive Program for Cross-Chain Bitcoin Liquidity Utilizing Wormhole

Look out, world! tBTC is taking your Bitcoin cross-chain.

tBTC is integrating with interoperability protocol Wormhole in a collaboration that will lead to the opening of 20+ new ecosystems to tBTC and potentially stimulate liquidity throughout DeFi.

There are two parts to the agreement: a bridging element and a planned liquidity bootstrapping campaign to catalyze the bridging of up to 26,000 BTC.

Wormhole proposed the integration to the Threshold community in mid-April, saying it wanted to help tBTC become a dominant wrapped Bitcoin in on-chain DeFi. The agreement won strong community support and was fully approved on April 29th.

“Instead of Bitcoin on Ethereum, tBTC will become ‘Bitcoin, Everywhere’,” Keep Network Co-founder and Threshold contributor Matt Luongo tweeted after the proposal landed.

The Wormhole integration will allow tBTC – the decentralized, permissionless, and scalable Bitcoin equivalent that allows users to access the Ethereum and cross-chain DeFi ecosystem – to be transferred to both Ethereum Virtual Machine (EVM) chains (e.g. Arbitrum, Optimism, and Polygon), and non-EVM chains (e.g. Solana, Aptos, Sui, and Cosmos).

Threshold Network Goes Live With Wormhole to Bridge Bitcoin to 20 Blockchains
Using bitcoin on other networks previously required users to rely on centralized bridges, which increased risks for token holders.

Maximum Capital Efficiency

The bridging plan relies upon RFC-8, a new approach to bridging ERC-20 tokens that allows the efficient deployment of capital to Ethereum sidechains.

Instead of creating wrapper tokens for each chain, soaking up valuable liquidity that could be used elsewhere, tBTC will be minted on Ethereum. A canonical token – i.e., one that is native to an ecosystem rather than wrapped – will then be deployed for each new chain. This way, the tBTC supply remains intact and risk is corralled in local ecosystems.

Collaboration plans also include a cross-chain liquidity bootstrapping operation by the Threshold DAO with the potential to attract up to 26,000 BTC of deposits. Experienced liquidity providers will seed tBTC liquidity in important ecosystems in exchange for the option to purchase approximately $20 million worth of Threshold’s T tokens at or above the spot price.

Threshold DAO Approves Wormhole’s $750M tBTC Proposal for Cross-Chain Bitcoin Liquidity
SAN MATEO, Calif., May 11th, 2023 9:00am EDT - tBTC, the decentralized, permissionless, and scalable Bitcoin equivalent, is collaborating with interoperability protocol Wormhole in an initiative that will open 20+ new ecosystems to tBTC and catalyze the br…

Celebrating tBTC’s Cross-Chain Future with a Chance to Win

To celebrate this historic integration, we will be giving away exclusive Galxe OAT NFTs. Your Galxe OAT claim is not just a collectible; it's also your ticket to a future contest. Stay tuned for more details.

The giveaway campaign launches today, May 11th, to coincide with the Wormhole integration announcement, and ends on May 25th, right before the next stop on the tBTC Wrapped Tour.

Proof of entry will be facilitated through the Galxe platform, where participants can submit their information and verify their eligibility.

To be eligible to claim your free Galxe OAT NFT, simply follow these steps:

1. Mint tBTC during tBTC Wrapped Tour Stop 2, May 11th - May 25th.
2. Follow @wormholecrypto and @TheTNetwork on Twitter.
3. Like and retweet the Wormhole integration announcement post.
4. Get ready for an exhilarating ride through the tBTC Wormhole Integration OAT Claim Here!

Below is a demo of how to mint tBTC:

Unleashing Bitcoin Across DeFi

When last year’s meltdown of the FTX empire forced Alameda-controlled renBTC to close, it left Bitcoin hodlers cut off from many important Ethereum side chains – without access to a pegged BTC alternative. tBTC, pegged 1-to-1 to BTC, is focused on becoming that alternative.

For DeFi to live up to its full potential, Bitcoin hodlers must be able to use their liquidity on any chain, anywhere. tBTC exists to realize that potential.

“tBTC was created with one goal in mind: to unleash the untapped potential of the world’s most popular cryptocurrency across DeFi,” Luongo said. “With this agreement, we are one step closer to achieving that.”

To find out more about how tBTC will become the Bitcoin in DeFi, check out our Twitter and join the Threshold community on Discord