Proposal: Whitelist ibBTC as a collateral asset

Summary

We propose to add $ibBTC to CREAM for lending and borrowing.

ibBTC is well on its way to becoming the easiest onramp for any user holding bitcoin to put it to work through DeFi. ibBTC was developed jointly by BadgerDAO & DefiDollar and went live on May 8, 2021.

ibBTC has completed a 3 phase guarded launch and is now open for all to mint. The TVL currently stands at 633 BTC (~ $24 Million) .

Should this proposal be accepted, CREAM would be the first lending protocol to accept ibBTC tokens as collateral across DeFi…

For

Add ibBTC as a collateral asset

Against

Do nothing

Motivation

Why ibBTC?

Liquidity of tokenized BTC on Ethereum is spread across different flavors namely wBTC, renBTC, tBTC & sBTC. ibBTC bundles them together to build a yUSD equivalent for BTC that would become the default BTC denominated asset on Ethereum while enabling users to stack more sats, the DeFi way!

For Badgers and the broader community it opens up a whole new world of opportunities. No longer will your deposits in the Badger Bitcoin vaults be illiquid, as users can now use their vault positions to mint ibBTC and leverage that asset across DeFi. Think lending, borrowing, farming, providing liquidity and bringing it cross-chain.

Currently, the tokens utility comes from the new Sushiswap ibBTC/WBTC pool where users deposit their LP token into a Badger vault for boosted APY and little impermanent loss.

Benefits for CREAM

Increased TVL for Cream: This proposal will allow the CREAM TVL to expand and will allow the community to borrow other assets against their $ibBTC.

$ibBTC is an interest bearing asset that continuously gets stronger with time. This is great for users borrowing against it as it will effectively offset the borrowing rate to a degree.
This will spur interest from both the Badger and DefiDollar community. Combined together we bring along a vibrant community of 46,000+ followers, on Twitter.

Background

What Is Badger?

BadgerDAO is a decentralized autonomous organization (DAO) focused on building the products and infrastructure necessary to accelerate Bitcoin as collateral across other blockchains. Badger is a community-led initiative that prioritizes collaboration over competition and operates on fairness, transparency, and high collective engagement.

What is DefiDollar?

DefiDollar is a multi-chain DeFi Protocol Lab. We are building a range of products for the open finance ecosystem enabling yield generation, diversification and capital efficiency.

Specification

App: app.badger.finance

Contract: ibBTC contract address

Current Total Value Locked:24M (~633 BTC)

6 Likes

I support this proposal.

An oracle for ibBTC has already been developed. It takes into account the interest-bearing-ness of the asset via ibBTC.pricePerShare() - which continually increases when harvest strategies are run on the underlying badger sett vaults. It will be very interesting to see the dynamics of borrowing against such an asset as it offsets the borrow APY.

It will bring in much more borrow demand on Cream, because there are a huge number of users who like to borrow against Bitcoin, while their collateral auto-compounds for them.

1 Like

I support this proposal to add ibBTC as collateral to Cream. ibBTC is clearly ahead of the curve in recognizing that people want a composable bitcoin asset that collects yield. It will become the defacto way to hold BTC on ETH and a wonderful collateral. It will help cream by bringing in Badger community into the ecosystem as well as the curve communities and the other btc vaults that collateralize ibBTC.

I support this. Badger has show to be a solid and ever improving protocol in bringing BTC to Ethereum, and this will only give more incentives and improve the overall DeFi experience

1 Like

I support this proposal to add ibBTC as collateral to Cream. The Badger community is strong and would bring positive exposure to Cream.

Add ibBTC as a collateral asset

Completely support this, lets hope that Badger can offer THE way to hold BTC on Ethereum and hope this will not only tighten the partnershipf of Badger and Cream, lets also hope this will bring lots of TVL and fees to Cream.

I support the proposal to whitelist ibBTC. A composable yield bearing Bitcoin asset on Ethereum is good for DeFi and good for Cream Finance.

Now that we have the listing committee finalised, When can we expect this to go to vote :slight_smile: