[BIP-298] Enable tBTC/ETH [Arbitrum]


Proposal to add gauge support for 50/50 tBTC/ETH pool on Arbitrum.

Link to pool: 0xc9f52540976385A84BF416903e1Ca3983c539E34
Link to gauge: 0xa8D974288Fe44ACC329D7d7a179707D27Ec4dd1c

References/Useful links:

Link to:
Github Page

Protocol Description:

tBTC is a decentralized wrapped Bitcoin, that is 1:1 backed by mainnet BTC.

Unlike other wrapped Bitcoins, the BTC that backs tBTC is not held by a central intermediary, but is instead held by a decentralized network of nodes using threshold cryptography. tBTC is trust minimised and redeemable for mainnet BTC without a centralized custodian.

tBTC is built with Threshold Network’s decentralized infrastructure, and Ethereum.


This proposal aims to add a veBAL gauge for the Balancer tBTC/ETH pool on Arbitrum.

Threshold DAO has recently launched a L2 growth campaign with Wormhole, which has enabled a canonical tBTC bridge to Arbitrum.

The DAO has budgeted T token bribes to incentivise this tBTC/ETH pool, with the goal to attract liquidity to the pool and Balancer. Threshold DAO intends tBTC to become a core component of Balancer BTC liquidity on Arbitrum.

These pools are part of the tBTC launch promotion on Arbitrum which will commence next week and feature Balancer as a liquidity target and collaborator. There is currently another proposal in the forum to enable the tBTC/WBTC gauge.


  1. Governance: tBTC operates on Threshold DAO’s decentralized threshold encryption protocol. Threshold DAO is governed by the network’s work token, T. T token holders govern the DAO via proposals raised to the Threshold forum, which can be raised to a vote via Snapshot, as well as the on-chain Governor Bravo module.

  2. Oracles: tBTC does not rely on an oracle price feed.

  3. Audits:
    Least Authority
    Immunefi Bug Bounty

  4. Centralization vectors: Threshold Network governance is decentralized, and updates are ratified by the DAO via token holder vote. tBTC contract updates are currently managed by the Council multi-sig, with plans to migrate control to the DAO once cross-chain deployment is complete.

  5. Market History: tBTC is a wrapped BTC token, and is pegged to the price of BTC. Since launch, tBTC’s price has not significantly diverged from that of BTC. tBTC launched in January of 2023, and currently has ~700 BTC to collateralize the ~700 tBTC.

  6. Value: The Arbitrum tBTC/ETH will support BTC routing and liquidity on Arbitrum.

    Threshold DAO has allocated a portion of its incentives budget to bribe the tBTC/ETH pool using Paladin. This will incentivise veBAL holders to vote on our gauge to direct protocol emissions and attract TVL as part of the tBTC growth strategy on Arbitrum.

    Furthermore, Balancer is featuring in the Arbitrum launch promotion that Threshold DAO will commence next week. Lastly, Balancer will benefit by attracting additional BTC liquidity to Arbitrum.

The Balancer Maxi LM Multisig eth:0xc38c5f97B34E175FFd35407fc91a937300E33860 will interact with the GaugeAdderv3 at 0x5efBb12F01f27F0E020565866effC1dA491E91A4 and call the addArbitrumGauge function with the following argument:

0xa8D974288Fe44ACC329D7d7a179707D27Ec4dd1c which corresponds to the uncapped gauge for this pool.

1 Like


Some questions:

I got confused here:

Blockquote 0xa8D974288Fe44ACC329D7d7a179707D27Ec4dd1c which corresponds to the uncapped gauge for this pool.

Is this pool going for an uncapped gauge? Or is it 10%? Or 2%? isn’t the practice to start at 2%?

Also, from the comment on the sister proposal https://forum.balancer.fi/t/bip-297-enable-tbtc-wbtc-arbitrum/4788/2.

Why don’t give more time for ppl to discuss and learn about this new protocol?

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I’d advise reviewing the gauge framework proposal to understand when the 2% cap comes into play. In this case tBTC is freely mintable with BTC so there’s no reason a cap is required.

In terms of giving ppl more time to discuss, please don’t let the fact that this is queued for a vote stop you from initiating a discussion. You can review the latest governance process but the tldr is there’s no requirement for any discussion phase before a BIP can go to a vote.

Most of the time gauge proposals have zero discussion regardless of whether they sit here a day or 7 or longer. You can browse through previous BIP’s to get an idea of how many have any discussion at all (a small minority).