This proposal registers the DAI, TBTC, WETH, WBNB, USDC, WBTC token to the foreign asset registry, so that in the future these tokens can be received via the Moonbeam wormhole bridge. It also registers GLMR, which will be necessary to interact with said bridge.
Adding the tokens now would allow to have a UI ready in 3 weeks from now to transfer these assets onto Interlay and back.
This proposal does not yet propose what to do with these assets on the Interlay chain itself, and this will require follow-up proposals.
The primary use case for this proposal is to provide a decentralized on and off-ramp for BTC and wBTC on Ethereum through Interlay via iBTC. Users would mint iBTC by depositing BTC and then swapping the iBTC to wBTC. On the reverse, wBTC would be swapped to iBTC and then redeemed for BTC.
With renBTC being out of the market, there is currently little choice to swap BTC for wBTC or wBTC to BTC. Having a decentralized on and off-ramp for BTC/wBTC enables the Interlay network to collect transaction fees in INTR as well as protocol fees on the bridge (if bridge fees are enabled - requires an extra governance proposal) and the DEX (if an iBTC/wBTC pool is enabled - requires an extra governance proposal).
This proposal proposes to add the assets to the Interlay chain. However, it unlocks many use cases that will increase usability for the Interlay network and the iBTC asset. Each of these use cases is subject to its governance vote.
As Wormhole is a centralized bridge, it comes with counterparty risk. Adding the assets to the registry itself does not add them to any of the bridge, DEX, or lending protocols. There needs to be a discussion to what extent the assets should be added to the Interlay protocols and at which ceilings in the follow-up proposals.