[GIP-161] Onboard LBTC on Ethereum
AI summary
This proposal, authored by Chaos Labs, suggests adding LBTC as a collateral option within Gearbox's WBTC (Wrapped Bitcoin) credit accounts. LBTC is a new token from Lombard Finance, backed by Bitcoin, which aims to integrate with the Babylon protocol for Bitcoin staking. The proposal recommends conservative initial limits: a maximum of 35 LBTC can be borrowed against, and the loan-to-value ratio (how much you can borrow against your collateral) is set at 90%.
If approved, Gearbox users will be able to use LBTC as collateral to take out loans, potentially increasing the utility and demand for LBTC. This could benefit LBTC holders by providing more avenues for its use, but also introduces a new asset with unproven long-term stability and liquidity into the Gearbox ecosystem. The proposal notes that LBTC currently lacks staking rewards, which might affect its demand.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Author
Chaos Labs
Overview
Chaos Labs proposes listing LBTC on the Gearbox WBTC with conservative quota limits and LT parameter of 35 BTC and 90%.
Having launched on August 21st, with the corresponding Babylon protocol set to follow on August 22nd, LBTC is currently in private beta. Waitlist members are being gradually issued access codes to deposit BTC and mint LBTC in batches over the coming days. At time of writing, there have been 191 LBTC minted by 32 different users, resulting in a TVL of approx. $11,606,884.
*Note: The following recommendation is based exclusively on mark…