[BNB Chain] Add support for WBTC on Venus Core Pool

Proposals
1

Summary

This proposal aims to onboard WBTC to Venus on BNB Chain. Now that WBTC is deployed natively on BNB Chain, Venus has an opportunity to integrate the space’s leading tokenized Bitcoin derivative into its home network. This will help grow the total value locked into Venus Protocol while enhancing asset diversity.

Motivation

Onboarding WBTC to the Venus Protocol on BNB Chain has the following advantages:

  1. Market Acceptance

With a total market value of $9.7B, WBTC is the largest Bitcoin-backed ERC-20 token and ranks as the 15th largest crypto asset overall. In comparison, WBTC is more than twice the size of Binance’s BTCB, which is one of the most heavily supplied assets to Venus Protocol’s Core Pool on BNB Chain today.

Of all the venues to deploy liquidity across DeFi, money markets have attracted the largest share of minted WBTC, highlighting the value token holders place on borrowing against their WBTC collateral. Therefore, as the leading money market on BNB Chain, Venus Protocol has an opportunity to capture a significant share of WBTC’s TVL as token holders migrate to the network in search of alternative yield opportunities.

  1. Asset Diversity

Currently, Binance BTCB is the only tokenized Bitcoin derivative supported by Venus on BNB Chain. Adding WBTC as a collateral type would enhance asset diversity, giving users another tokenized Bitcoin alternative to deposit and borrow against.

Background

About WBTC

BitGo launched WBTC in January 2019 to provide applications on Ethereum with access to Bitcoin. Each WBTC token is backed 1:1 by Bitcoin held with custodians, verified through onchain proof-of-reserves.

To mint WBTC, a user submits Bitcoin to a merchant, who conducts AML and KYC checks on the submitter. Once verified, the merchant sends the Bitcoin to a WBTC custodian, who mints the equivalent amount of WBTC. The custodian deposits the Bitcoin into known reserve addresses and sends the newly minted WBTC back to the merchant, who then transfers it to the user.

WBTC Goes Omnichain With LayerZero’s OFT Standard

Up until recently, WBTC was natively deployed on several chains including Ethereum, while existing on others through non-canonical, third-party bridges that introduced security, liveness, and centralization risks.

To expand WBTC securely beyond these existing native deployments, WBTC has adopted LayerZero’s Omnichain Fungible Token (OFT) Standard. Since doing so, BitGo has expanded WBTC natively to BNB Chain, Base, and Avalanche

By adopting the OFT standard, WBTC can now move natively and freely across all integrated chains via a burn-and-mint mechanism, with omnichain message passing securely facilitated by a decentralized verifier network (DVN) ran by BitGo. Moreover, BitGo retains full ownership and control of all WBTC token contracts and functions, managing the token supply directly and consistently across all blockchains.

Conclusion

With WBTC already supplied to Venus Protocol on Ethereum and Arbitrum, onboarding the asset to BNB Chain presents an opportunity to drive significant TVL growth and promote asset diversity. As users migrate their WBTC from Ethereum to new networks, Venus can capitalize on this, further solidifying its position as the leading money market on BNB Chain.

Looking forward to discussing this integration further with the broader Venus DAO community.

9 Likes
2

I support the addition of WBTC to the Venus Core Pool. With the new assets recently added to the Core Pool, Venus will maintain its leading position in the BNBChain and grow with new users.

4 Likes
3

Really nice to see proposals with new assets for the Core Pool on an almost daily basis, this particular one is fully supported! :clap:

3 Likes
4

BTC + TVL + LayerZero + BitGo == SUCCESS!

Let’s go for it Venus Community!

4 Likes
5

Let’s go, let push Venus TVL to ATH agaim

3 Likes
6

This proposal is a great opportunity for Venus Protocol’s growth. Integrating WBTC could boost liquidity and attract more users.

3 Likes
7

Great proposal! Onboarding WBTC to Venus on BNB Chain will boost asset diversity and attract more TVL. Excited for the growth and new opportunities this brings!

1 Like
8

I support adding WBTC to BNB Chain. It will boost our TVL and diversify assets.

1 Like
9

Very supportive of this proposal. Let’s increase the BNBChain TVL with this new market.

Let’s go :wink:

1 Like
10

5B TVL on bsc, incoming

1 Like
11

Great proposal. WBTC has the potential to increase Venus’s TVL with its market cap. The peak performance of Venus Protocol continues without interruption. :zap:

1 Like
12

You have my full support on this proposal. I find it interesting to incorporate WBTC into the Core Pool of Venus on BNBChain. I believe this step will be significantly interesting and, above all, beneficial for the community. :exclamation: Let’s go, Venus :exclamation: :fire: :fire:

13

Add wbtc to the prime pool as well!!

14

Sounds great! Onboarding new assets is always a win for Venus as it boosts our TVL and spicing up asset options on Venus! I am in support so let’s make it happen :blush:

15

Venus welcoming WBTC with an open arms :handshake:

16

I support this proposal, but we need to consider whether “WBTC” can be deposited on exchanges (ex:Binance, OKX). BTCB is no problem, but most exchanges don’t support WBTC (BNB CHAIN) deposits.
If not, users need to be reminded of the risk for deposited.

17

It’s a great offer. WBTC looks like a great option for every crypto enthusiast. I’m sure there are enough BTC holders among Venus users who have had thoughts of using WBTC for a long time, let’s launch a vote.