Using tBTC as Collateral for Interlay Vaults
Introduction
This proposal explores the possibility of integrating tBTC, a wrapped Bitcoin solution on Ethereum, as an additional collateral option.
Benefits of Using tBTC as Collateral:
By allowing tBTC as collateral, Interlay can tap into the liquidity of the wrapped Bitcoin market. This could incentivize more vault operators to participate, ultimately increasing the availability of interBTC (iBTC).
Improved Decentralization:
Expanding the collateral pool with tBTC fosters a more decentralized network for Interlay. This reduces reliance on a limited set of assets and mitigates potential risks associated with them.
Synergy with DeFi Ecosystem:
Since tBTC is already integrated into various DeFi protocols, allowing it as collateral strengthens Interlay's connection with the broader DeFi landscape. This could attract users who are already comfortable using tBTC.
Open for discussion