- A trustless bridge between Bitcoin (BTC) and Ethereum (ETH) is relaunching its project after a failed mainnet launch in May.
- tBTC is an Ethereum-based token that allows users to leverage BTC in the decentralized finance (DeFi) ecosystem – by exchanging BTC for tBTC at a value of 1:1.
According to the launch statement, tBTC aims to increase participation and growth in the top cryptocurrency ecosystem by providing a bridge to DeFi. Contrary to other ETH-based BTC products such as BitGo’s wBTC, tBTC will provide a platform to exchange tBTC to BTC and vice versa with “no intermediary needed to sign off.”
The recent launch follows a failed launch back in May this year – less than 48 hours after launching its mainnet. Then, the tBTC lead development team paused the smart contract for ten days – stopping any BTC deposits and helping users drain funds from ETH – as it experienced some technical issues.
tBTC project, led by Thesis Strategy’s Keep, Summa, and the Cross-Chain Group, the relaunch is going again ”after three months of testing, tweaking, and auditing,” Matt Luongo, Founder of Thesis stated.
“We've launched tBTC rc.1 on mainnet. I expect it will be the final release candidate for tBTC,” he wrote on Twitter.
The new-tBTC platform is expected to differ significantly from the first version (rc.0) launched in May. First, the project (rc.1) comes with a guarded release of its schedule supply cap in the first nine weeks – growing gradually from 100 BTC to 3000 BTC – to moderate participation while testing. After nine weeks, the supply cap will be removed, opening up deposits.
Second, after six months, the team’s ability to pause smart contracts on BTC deposits will be removed as they target to make tBTC a total decentralized project.
Finally, Luongo also said the project aims at eliminating the short-term liquidity problems from liquidity providers that “jump from token to token looking for yields.” To do this, tBTC will start rolling out its incentives (KEEP tokens) slowly and gradually to avoid a capital flight from its liquidity pools and “seeking to balance stability and growth.”
The project will start its incentives program through Nexus Mutual holders who stake their native NXS tokens to provide insurance to tBTC minters. They will be paid out in KEEP tokens.
11/ Our first incentive program will launch with @NexusMutal. $NXM holders that stake to provide cover for tBTC minters will be rewarded by KEEP, weekly. This program means any depositor will be able to buy cover for their deposits through the Nexus Mutual dApp.
— Matt Luongo (@mhluongo) September 22, 2020
To prevent any hiccups this time, the project lead team conducted three security audits on the tBTC smart contract from the failed one in May. After the first ConsenSys Diligence led security audit in March, tBTC has added a second audit by Trail of Bits, concluded in June, and a final Bitcoin audit in August by Sergei Delgado.