# Operation nBTC: transition to a more decentralised Bitcoin

**URL:** <https://forum.shadeprotocol.io/t/operation-nbtc-transition-to-a-more-decentralised-bitcoin/378>\
**Category:** Shade Protocol\
**Created:** [October 31, 2023, 5:52pm UTC](https://forum.shadeprotocol.io/t/operation-nbtc-transition-to-a-more-decentralised-bitcoin/378 "2023-10-31T17:52:20Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![Jiricepelka.scrt](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.shadeprotocol.io/jiricepelka.scrt/32/366_2.png) [@Jiricepelka.scrt](https://forum.shadeprotocol.io/u/Jiricepelka.scrt)\
**Post date:** [October 31, 2023, 5:52pm UTC](https://forum.shadeprotocol.io/t/operation-nbtc-transition-to-a-more-decentralised-bitcoin/378/1 "2023-10-31T17:52:20Z")

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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

 ![Before](https://canada1.discourse-cdn.com/flex030/uploads/shadeinstitute/original/1X/8a12d596bd1477186fa189f040d4bced2621154f.png)

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

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<div class="post-metadata">

**Author:** ![Jiricepelka.scrt](https://yyz2.discourse-cdn.com/flex030/user_avatar/forum.shadeprotocol.io/jiricepelka.scrt/32/366_2.png) [@Jiricepelka.scrt](https://forum.shadeprotocol.io/u/Jiricepelka.scrt)\
**Post date:** [October 31, 2023, 5:53pm UTC](https://forum.shadeprotocol.io/t/operation-nbtc-transition-to-a-more-decentralised-bitcoin/378/2 "2023-10-31T17:53:48Z")

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