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.
Reasons:
- Increased decentralisation
- easier onboarding via direct bridge from BTC L1
- elimination of additional risks associated with wBTC and Axelar
Objectives:
- 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