Passing this proposal will upload the WBTC CosmWasm contract to the Osmosis chain and recognize WBTC minted through this contract as the Canonical version of WBTC on Osmosis as the most native version.
WBTC brings Bitcoin liquidity to Defi by providing a token usable in smart contracts, backed 1:1 with Bitcoin verifiably held by a community of Custodians.
As an ERC-20 token on Ethereum, WBTC has allowed Bitcoin liquidity to be used across DeFi use cases rather than being restricted to trading on Centralised Exchanges.
This contract enables the WBTC issuance and redemption process as a native token on Osmosis.
The WBTC contract allows the issuance and redemption of WBTC according to Bitcoin present in the custodian’s wallet on the Bitcoin blockchain at the request of merchants.
Merchants perform key roles for the WBTC community as administrators who initiate the process of minting newly wrapped tokens and burning wrapped tokens which is performed by the Custodians
The custodian provides reliable, institutional-grade security for your WBTC. All WBTC issued will be fully backed and verified through on-chain proof of reserves.
The addition and removal of merchants and custodians for WBTC on Osmosis will be an open process controlled by a multi-signature contract. Keys to the multi-sig contract will be held by institutions as part of the WBTC DAO
Oak Security has audited the contract, which can be viewed here: https://github.com/oak-security/audit-reports/blob/master/Osmosis%20Labs/2023-08-18%20Audit%20Report%20-%20CosmWasm%20WBTC%20v1.0.pdf
Release Version: V1.0.0
Git Commit ID: 876f865e0b06e519384808efe84ee906d8746c05
Compiler Version: cosmwasm/workspace-optimizer:0.14.0
As part of this proposal, Osmosis recognizes the WBTC minted via this contract as the canonical version of WBTC on Osmosis.
Canonical status sets the following agreement:
Default Asset List
Assets will be unprefixed in the app.osmosis.zone default asset list, e.g. WBTC with all other bridges’ assets being bridge1WBTC, bridge2WBTC, etc. Osmosis DAO requests that allied/friendly front-ends do the same, though any front-end is free to make its own decisions.
The DAO commits to prioritizing the Canonical Bridge assets, incentivizing them earlier and more heavily than the comparable assets of non-canonical bridges. In general, canonical pools should earn substantially more incentives per dollar of liquidity than their counterpart pools–under the base incentives model, not necessarily counting external incentive matching.
This proposal does not directly impact the incentives currently provided to the axlWBTC/OSMO pool (712), which will be reallocated in a future proposal.
Target On-chain date: 30th August 2023