@mhluongo and @MacLaneWilkison (co-founders of @keep_project & @NuCypher) chatted with @laurashin on @Unchained_pod about everything tBTC and #Bitcoin bridges.
A summary of what was discussed 🧵
A summary of what was discussed 🧵
@tBTC_project is a decentralized BTC bridge to #Ethereum that was launched in 2020 on the @keep_project Network.
It faced tough competition from centralized providers such as WBTC & renBTC and ultimately, v1 was just not scalable.
#tBTC v1 peaked at 1800 #BTC under management.
It faced tough competition from centralized providers such as WBTC & renBTC and ultimately, v1 was just not scalable.
#tBTC v1 peaked at 1800 #BTC under management.
On the other hand, @renprotocol chose a ‘progressive path to decentralization’ but never actually became decentralized. 😥
Centralization led to the grim situation today
Centralization led to the grim situation today
The REN treasury was acquired by Alameda Research in 2021, and thereafter, developers were paid on a quarterly basis by a now bankrupt entity.
The @renprotocol team is now completely out of funding for further development. 😱
The @renprotocol team is now completely out of funding for further development. 😱
The other big issue is around the security of the #Bitcoin bridged.
renBTC will be shut down as soon as the nodes (paid for by @AlamedaResearch) go offline, and renBTC will become unredeemable. 💸
renBTC will be shut down as soon as the nodes (paid for by @AlamedaResearch) go offline, and renBTC will become unredeemable. 💸
~450 #BTC are still in the renBTC bridge and @CurveFinance still has deep liquidity in multiple renBTC pools. They even have a bright banner on their site warning users.
When the renBTC bridge shuts down, millions of dollars will unfortunately be rugged from straggling holders.
When the renBTC bridge shuts down, millions of dollars will unfortunately be rugged from straggling holders.
Competition has dwindled and WBTC is all that is really left standing. 💪
@WrappedBTC is a great product but you need to trust that @BitGo will continue to offer redemptions.
“Everyone else has gone bankrupt or will shortly be in jail.” - @mhluongo
@WrappedBTC is a great product but you need to trust that @BitGo will continue to offer redemptions.
“Everyone else has gone bankrupt or will shortly be in jail.” - @mhluongo
After 2 years of development, the @keep_project contributor team is finally launching v2 on the Threshold Network! 🫡
Due to the lack of solutions currently available to bridge #BTC to #Ethereum the launch timeline is being expedited.
Due to the lack of solutions currently available to bridge #BTC to #Ethereum the launch timeline is being expedited.
Launching any new protocol is scary, especially a bridge! We have been diligent and taken multiple years to develop #tBTC v2.
#tBTC v2 has undergone multiple audits, both internally and externally. 🧑💻👩💻
#tBTC v2 has undergone multiple audits, both internally and externally. 🧑💻👩💻
To mitigate the risks associated with custodying #BTC, tBTC uses a decentralized network of nodes with a 51-of-100 signer set system.
That means @tBTC_project requires a threshold majority agreement before operators perform any action with your #Bitcoin.
That means @tBTC_project requires a threshold majority agreement before operators perform any action with your #Bitcoin.
Staking will also include a slashing mechanism for malicious node behavior and downtime, which ensures both the security of the network and network availability.
Coverage pools will also be deployed, which are kind of like an insurance backstop or a decentralized SAFU fund.
Coverage pools will also be deployed, which are kind of like an insurance backstop or a decentralized SAFU fund.
Unlike other solutions, users of tBTC v2 trust math, not hardware or people. 🙌
The mint and burn fees accrue to the Threshold DAO’s treasury, which is on-chain and controlled by token holders.
Governance determines what happens to the revenue generated by the protocol.
Governance determines what happens to the revenue generated by the protocol.
Matt & MacLane both have their own companies that contribute to Threshold
And if one of those companies goes belly up or disappears
The functioning of @tBTC_project or the Threshold Network would not be impacted.
And if one of those companies goes belly up or disappears
The functioning of @tBTC_project or the Threshold Network would not be impacted.
@laurashin asked: “Why this blockchain? I’ve never heard of it.”
We saw that @NuCypher’s values aligned with @keep_project’s and we had this opportunity where, if we joined forces, we could take more of the market.
KEANU was the earliest example of a decentralized hard merger; a sort of ‘Decentralized M&A’.
KEANU was the earliest example of a decentralized hard merger; a sort of ‘Decentralized M&A’.
The NU and KEEP token holders decided to create a third project that we could all migrate to.
Threshold was launched on January 1, 2022, after almost a year of iterations on governance proposals to reach the final terms of the merger.
Threshold was launched on January 1, 2022, after almost a year of iterations on governance proposals to reach the final terms of the merger.
We are thrilled to be able to launch $tBTC v2 on the Threshold Network
And provide #Bitcoin holders a truly decentralized and permissionless way to participate in DeFi on #Ethereum!
And provide #Bitcoin holders a truly decentralized and permissionless way to participate in DeFi on #Ethereum!
If you want to learn more about v2, the Threshold docs are a great place to start: docs.threshold.network/fundamentals/t…
MacLane got into crypto in 2013 or 2014 at @SFBitcoinDevs
User Group at @hackerdojo. @MacLaneWilkison met @newmichwill (founder of @curve_finance and cofounder of @NuCypher), a founder of @dfinity and @zmanian (of @cosmos) and just met some really great people early on.
User Group at @hackerdojo. @MacLaneWilkison met @newmichwill (founder of @curve_finance and cofounder of @NuCypher), a founder of @dfinity and @zmanian (of @cosmos) and just met some really great people early on.
@mhluongo launched a business buying and selling gift cards and it took off.
Then PayPal cut him off and he discovered #Bitcoin when he lost financial access and needed something in a pinch back in 2014.
This turned into what is now @fold_app (a Bitcoin-backed rewards card).
Then PayPal cut him off and he discovered #Bitcoin when he lost financial access and needed something in a pinch back in 2014.
This turned into what is now @fold_app (a Bitcoin-backed rewards card).
@mhluongo went on to cofound @keep_project and @TallyHoOfficial
A decentralized, community-owned, open-source crypto wallet that aims to compete with MetaMask. 🐶🐶
A decentralized, community-owned, open-source crypto wallet that aims to compete with MetaMask. 🐶🐶
@laurashin closed by asking their thoughts on the controversy between #Bitcoin maximalist
And the Ethereum community and why they choose to work at the intersection of Bitcoin and #Ethereum.
Catch their responses on the @unchained_pod here:
unchainedcrypto.substack.com/p/how-can-bitc…
And the Ethereum community and why they choose to work at the intersection of Bitcoin and #Ethereum.
Catch their responses on the @unchained_pod here:
unchainedcrypto.substack.com/p/how-can-bitc…
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