SIP-X Add wBTC/pBTC pool on Arbitrum

Summary

This is a proposal to launch a wrapped BTC pool on Saddle.finance on Arbitrum. Specifically, we are proposing a pBTC/wBTC pool, which could be extended later on to include other wrapped versions of BTC (i.e. renBTC, tBTC…)

Background

pNetwork is a decentralized cross-chain protocol currently safeguarding 150M in TVL and supporting 12 different blockchains. We recently crossed the 1 Billion threshold in cross-chain volumes considering all pTokens, 1:1 pegged assets used to facilitate bridging. With the latest release of the pNetwork V2, pTokens like pBTC become fungible across chains, meaning users will be able to move their pBTC directly across any of the supported chains without the need to go back to the Bitcoin blockchain. pBTC holders are currently providing about $30M worth of liquidity on Ethereum (most of it on Curve) and we are committed to kicking off a liquidity mining campaign to develop liquidity on the Arbitrum ecosystem.

Motivation

While our main goal is to develop liquidity and foster the adoption of pBTC, we think this is an excellent opportunity for Saddle to expand its reach with a new product and attract liquidity in a new ecosystem. Further wrapped versions of BTC can be easily added later on, in the form of meta pools or tri-pools like the ones on Saddle-Ethereum or Curve-Ethereum.

Specification

Three months Liquidity Incentive campaign using Saddle Minichef Contracts:

  • Saddle provides 600,000 $SDL , equalling ~7,143 SDL/day.
  • pNetwork provides 50,000 equalling ~595 PNT/day.

The incentives structure assumes a 2:1 ratio of SDL/PNT and a FDV valuation of ~$100M for Saddle.finance. 50,000 PNT are valued at roughly $30k at the current market price.


References:
pNetwork stats
pBTC pool on Curve eth


For: Launch the wBTC/pBTC pool with PNT and SDL incentives on Saddle on Arbitrum

Against: No change

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