wBTC has pretty good growth rates as seen on defipulse but as a custodial solution is hampered by trust-based systems which BTC holders do not by and large feel comfortable with.
RenBTC is a tokenized representation of BTC on the Ethereum blockchain. It is an ERC20, and backed 1:1 with real BTC locked in RenVM, a decentralized custodian. It is redeemable at any time for real BTC.
When Curve created an opportunity for RenBTC to generate returns, the RenVM TVL growth chart exploded. This is a clear signal that when the right solution is available, there is a LOT of BTC waiting on the sidelines to jump into farming yield on ETH. Let’s be there for them.
MakerDAO recently (2-3 weeks ago) greenlit RenBTC as collateral. Links in references below for evidential purposes. It’s coming soon.
Let’s allow users to deposit BTC directly via RenVM Bridge on our site like Curve does for deposits, we give user yRenBTC, turn their BTC into RenBTC, Create a CDP, manage collateral and use our vaults to generate yield, which is used to buy RenBTC on the market and deliver returns to depositors as RenBTC. This allows a user to deposit BTC and increase their BTC stack while also generating significant buy pressure on the market for BTC.
It is also possible to directly deposit the RenBTC to Curve and farm CRV, with returns delivered as more RenBTC to depositors.
Update: It is also possible to immediately accept RenBTC and deploy to CREAM farming as is currently conducted for yYFI Vault. The direct BTC > RenBTC bridge can be implemented later.
- Capture up to $214b in AUM from BTC holders who want to passively grow their BTC holdings
- First big mover advantage. There is room to generate significant goodwill from bitcoin holders ($214b in potential AUM) by creating the first truly passive method to generate returns in BTC using the best strategy available at any time.
- AUM go BOOM untz untz untz
- Add a new Vault row in Table for yRenBTC Vault
- Create a RenVM Bridge deposit form in Vault Product similar to how Curvefi does it here (click X on BTC icon)
- User deposits BTC (or RenBTC if they already have it), we give user yRenBTC, turn their BTC into RenBTC, Create a CDP, manage collateral and use our vaults to generate yield through whatever method using DAI, which is used to buy RenBTC on the market and deliver returns to depositors as RenBTC. Or directly use RenBTC to farm CRV.
- FOR: YES! Let’s add yRenBTC Delegated Vault as SOON as it’s available.
- [renBTC] MIP6 Collateral Application - Collateral Onboarding Applications - The Maker Forum
- yETH <=> ETH Delegated Vault
- YIP-39: Add Curve sBTC Pool LP-Tokens yVault