What is this about?

Threshold DAO has proposed a project named tBTC, a decentralized bridge to bring BTC to DeFi. The project aims to aggressively grow the Total Value Locked (TVL) of decentralized Bitcoin on Arbitrum, making the Arbitrum DeFi ecosystem more robust and less reliant on centralized WBTC. The key performance indicator for the project is the growth of tBTC TVL to 600 BTC, or $15M. The project is seeking a grant of 750K ARB (Siren) with a matching grant of $10,000 per month, denominated in Threshold Network Token (T), for a 12-month period, totaling $120,000. The grant will be used to incentivize rapid Bitcoin TVL growth on Arbitrum through bribes on Curve and Balancer via Hidden Hand.

How is the community reacting?

The community has shown mixed reactions to the proposal. Matt_StableLab pointed out that ThresholdNetwork's initial proposal did not comply with the program rules, which led to an update in their ARB distribution timeframe and TVL objectives. CryptoReuMD expressed support for the proposal and asked about the redeemability of tBTC. Flindy voiced disapproval of the grant matching covering a 12-month period, arguing that it was unfair and lacked transparency. Axlvaz_SEEDLATAM.eth asked about the implementation of a specific pool and the provision of initial liquidity. ITUblockchain expressed concerns about the high grant amount requested by Threshold Network without a partnership agreement with GMX and voted "Against" the proposal.

Why this is positive?

The proposal by Threshold DAO is a positive development as it aims to reduce the Arbitrum DeFi ecosystem's excessive reliance on WBTC, which exposes BTC DeFi on Arbitrum to significant counterparty risk. The proposed solution is a highly liquid, permissionless, censorship-resistant alternative that will significantly benefit the Arbitrum ecosystem. The grant will enable Threshold DAO to incentivize tBTC pools on Arbitrum, encouraging tBTC TVL and volume growth on Arbitrum, and making tBTC an attractive integration target for additional protocols.

Why this is negative?

Some community members have expressed concerns about the proposal. Flindy argued that the grant matching covering a 12-month period was unfair and lacked transparency. ITUblockchain expressed concerns about the high grant amount requested by Threshold Network without a partnership agreement with GMX and pointed out that the grant primarily benefits Threshold Network and the allocation to T, Threshold Network's token. Due to these concerns, they voted "Against" the proposal.