TLDR
- mStable launches new mBTC/tBTCv2 Feeder Pool
- This Feeder Pool replaces the current mBTC/tBTC Feeder Pool
- MTA rewards migrate and start on Monday 1th November 2021
- Liquidity Providers are advised to migrate in order to continue to receive MTA rewards
We are excited to announce the launch of our new mBTC/tBTCv2 Feeder Pool. A Feeder Pool is mStable’s Stableswap AMM that is paired with our own assets such as mBTC and allows for efficient swaps to and from our products (see recap below).
This Feeder Pool will replace the current mBTC/tBTC Feeder Pool. The contracts remain active, however, MTA rewards will migrate to the newly deployed vault. Liquidity Providers are advised to migrate their current mBTC/tBTC position in order to continue to receive rewards in MTA from Monday 1th November 2021 onwards (see steps below).
Migration to new Pool
For the migration to our new Feeder Pool the following steps are necessary:
- Unstake and Remove Liquidity from the mBTC/tBTC Feeder Pool Page.
- Swap the tBTC tokens to tBTCv2 in the migration portal provided by Threshold Network.
- Visit the new mBTC/tBTCv2 Feeder Pool Page, approve and deposit tokens into the Pool. Optionally, stake for additional MTA rewards.
The migration portal allows swapping tBTC to tBTCv2 via the vending machine Smart Contract
Alternatively, single-sided liquidity can be withdrawn and provided. Withdrawing and depositing single-sided might have substantial slippage, depending on the balance of the tokens in the pool.
About tBTCv2
tBTCv2, the successor of tBTC, is a decentralized custodial banking system secured by the Keep Network and collateralised by KEEP. The new token addresses the drawback of the over-collateralisation model that limited the scalability to around 1,000 BTC in total. The new tBTCv2 token could scale potentially to 100,000 BTC (or, 1% of the total supply) and rival the capability of custodial solutions like WBTC, while still maintaining its decentralisation. Read more about the new token here.
A recap on Feeder Pools
As a recap, Feeder Pools are composed of 50% pegged assets such as tBTC and 50% mAssets such as mBTC, where mBTC serves as efficient bridges to bridge liquidity from each Feeder Pool to the main mBTC pool (and in reverse). This provides new opportunities for Liquidity Providers to earn MTA rewards and trading fees.
By contributing liquidity to a Feeder Pool, the liquidity provider will receive:
- Swap fees into and from the basket assets included in that Feeder Pool
- MTA rewards
- Possible interest from lending out Feeder Pool assets (this integration can be deployed in the future)
- Possible liquidity rewards from projects that wish to incentivise their own stablecoin on mStable
Feeder Pools are separate contracts from the mBTC pool and do not impact its risk profile. This means that any pegged asset can be added without impacting the integrity of mBTC.
Conclusion
Adding this new asset not only allows trading of a new and more decentralised version of a tokenised Bitcoin on Ethereum, but it also allows users to swap efficiently their different flavours of Bitcoin to one another. Holders of tBTCv2 can also benefit from an easy swap into mStable’s mBTC savings account, and withdraw back to tBTCv2 with minimal slippage.
This collaboration also tightened the partnership between mStable and Threshold Network as we held an AMA with the team in our Discord. We are happy to continue collaborating closely with Threshold Network in the future. As an example, the new Vault for our new Feeder Pool can accommodate two token rewards (MTA being the first).
Get started with this new Pool and add liquidity here.
