Alloyed BTC: Add cbBTC.axl

Description

This proposal would add cbBTC.axl as a constituent of Alloyed BTC with an initial static limit of 10%.

Alloyed BTC

Alloyed BTC was recognized as the canonical Bitcoin on Osmosis in Proposal 813.

It currently has around 59 BTC in supply on Osmosis, and consists of:

• WBTC.eth.axl (Axelar bridge from Ethereum) (75% Cap)
• WBTC (Natively Issued on Osmosis)
• ckBTC (Chain-Key Bitcoin via ICP) (20% Cap)
• nBTC (Nomic Bridged Bitcoin) (5% Cap)

This proposal requests the addition of cbBTC.axl to the existing Bitcoin Alloy, enabling BTC to be deposited via Base and the Axelar bridge.

This proposal adds an initial static rate limit of 10% to bound risk to Alloyed BTC for the established cbBTC issuance.

For a full description of Alloyed Assets, see the Blog Post

About cbBTC

cbBTC is a representative asset for Bitcoin backed by Coinbase, allowing its users to move their BTC to alternative chains from their off-chain account. While cbBTC is available on Base, Solana and Ethereum, this proposal only adds the cbBTC via Base, where it is the dominant Bitcoin representative asset. More Information

About Axelar

Axelar delivers secure cross-chain communication for Web3. Its infrastructure enables dApp users to interact with any asset or application on any chain with one click.

The Osmosis community voted Axelar the first canonical Ethereum bridge service provider in Proposal 206. Axelar currently facilitates liquidity for several bridged Ethereum assets on Osmosis, such as WBTC.eth, ETH, USDC, USDT, DAI, as well as connecting Osmosis to other chains such as Optimism, Arbitrum, Polygon and Avalanche.

Around 50.4M USD of tokens used within the Osmosis ecosystem have arrived via the Axelar bridge.

Target Onchain Date: 27th November 2024

Forum Post: https://forum.osmosis.zone/t/alloyed-btc-add-cbbtc-axl/3298