Operation nBTC: transition to a more decentralised Bitcoin

Hi, as the full launch of nBTC approaches I would like to set out the goals for Shade in terms of nBTC integration, primarily at the expense of the centralized Axelar wBTC as a liquidity asset paired with SILK and as collateral for SILK.


  • Increased decentralisation
  • easier onboarding via direct bridge from BTC L1
  • elimination of additional risks associated with wBTC and Axelar


  • bridge launch ( UI modification, Nomic IBC relay )
  • Incentivization of stableswap wBTC ↔ nBTC
  • Collateral
  • Incentivization of nBTC ↔ SILK
  • Cut wBTC ↔ SILK incentivisation

The first step should be the infrastructure, i.e. adding nBTC to the bridge while ensuring a stable IBC relay

Once Nomic launches the full version and raises the limit above 21 BTC this should be followed by the creation of a concentrated liquidity pool wBTC ↔ nBTC ( this pool can be maintained in the future )

Once at least some liquidity is established with nBTC should be allowed as collateral, the final modification should be to add SILK ↔ nBTC incentive and remove SILK ↔ wBTC incentive

It would be good to keep wBTC as collateral, but only in a limited form, wBTC liquidity will still be guaranteed due to wBTC ↔ nBTC liquidity


Alternatively, nBTC/wBTC LP can be added as collateral for SILK, which can significantly increase liquidity

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