Written by: Keep Network Translation & Proofreading: Min Min & A Jian
TBTC, which allows Bitcoin holders to safely access the Ethereum DeFi application, has been launched on tbtc.network. tBTC is a project jointly developed by Keep, Summa and Cross-Chain Group, which allows users to easily and securely convert BTC 1:1 into tBTC. The latter is an ERC-20 token that can be used on the DeFi platform.
Each tBTC token is backed by at least 1 BTC. tBTC is a trust-free token that uses random beacon technology to select a group of “signers” to be responsible for keeping BTC as collateral. Whenever you need it, you can exchange TBTC for BTC, and you can withdraw without an intermediate party. And the whole process is very simple: casting tBTC on tbtc.network and retrieving BTC only need to complete three simple steps.
Currently, the market value of BTC accounts for about 60% of the total market value of cryptocurrencies. If this part of liquidity can be injected into DeFi applications, it will play an important role in the long-term development of the entire cryptocurrency industry. And we must take the right approach: if we want to create a fair and transparent decentralized system based on cryptocurrency to replace the current financial system, we must build a safe and reliable bridge between Bitcoin and Ethereum.
For this reason, tBTC has adopted the highest standards in the design of security and usability. The tBTC project uses ECDSA threshold signature technology. The technology has been security audited and applied to mainstream crypto wallets and cryptocurrency exchanges, such as Binance. When it went live, Keep had already purchased insurance services through Nexus Mutual, so users can rest assured that their funds are safe.
The following are details about the launch of tBTC and its infrastructure.
tBTC has been tested and audited
tBTC has undergone rigorous testing and 3 unprecedented security audits. The first security audit was in March and was completed by ConsenSys. The second time was in June and was completed by Trail of Bits. In August, we completed a new Bitcoin security audit.
The several audits so far have focused on the Go client in the network and the smart contract in the system. The audit of Trail of Bits also focused on extending and automating the integration and system testing of tBTC, and added fuzz testing and property testing for different components where appropriate.
We also turn to the community to find and solve problems for us. Therefore, once someone finds a serious vulnerability, they can participate in tBTC’s bug bounty program, with a maximum reward of 1 million KEEP.
Version Candidate Mode of tBTC
tBTC adopts the candidate version release model, that is, the version released by the project “includes all functions or is nearly complete”, but not necessarily the final version, depending on wider user feedback. The candidate version will start from 0 and continue to iterate to 1 and 2 until a certain candidate version is regarded as the final version and upgraded to a stable version. This model allows us to test and improve the system in real time on the mainnet, while still focusing on the security of the system and ensuring the security of users. This can incentivize the best talents to test the defects of the application. I think this is an opportunity to make tBTC stronger.
After the public audit of ConsenSys Diligence, the alpha version of tBTC (ie, rc.0) was launched in May. Although there is no risk in user funds, our team found a problem and immediately suspended accepting new funds until the problem is resolved. rc.1 solved this problem and adopted unprecedented security measures. tBTC adopts ECDSA threshold signature technology that meets the highest cryptographic standards, has been fully reviewed, has open source code, and also comes with protection measures for user funds.
In the next few weeks, the rc.1 version of tBTC will be in the alpha test stage, during which time the supply of tBTC will be capped. After that, there will be a beta test version, which is estimated to be a long-term beta version, with features added continuously. In the next few months, we will continue to release candidate versions. We believe that through continuous testing and improvement, we can finally deliver projects that meet the highest safety and performance standards, allowing BTC to enter DeFi platforms such as Compound.
Graded supply ceiling
The rc.1 version has a hard cap on the supply of tBTC, which is 100 BTC in the first month. After each week, the contract will relax the restrictions based on the predetermined schedule.
In the first 48 hours after going online, the supply ceiling is very low and low-risk testing can be conducted. After that, in the first week, the supply cap will be increased to 100 tBTC, and will increase to 250 tBTC a week later.
After each week, the supply cap will increase by 250 tBTC until it reaches 1000 tBTC. Then, the supply ceiling will increase by 500 tBTC every week, until it reaches 3000 tBTC after 9 weeks of launch. In the last week, the supply ceiling will be directly increased to 21 million tBTC (same as BTC).
If there are any serious vulnerabilities in the smart contract, the team will urgently suspend deposits and coordinate users withdrawing deposits – then redeploy the repaired smart contract, release it as an rc.2 version, and reset the supply ceiling plan. If there are no problems for the next 6 months, the team will turn off the emergency pause button.
At present, there is a huge demand for projects connecting Bitcoin and Ethereum, but we have formulated the supply cap plan from a long-term perspective. The hierarchical supply cap of tBTC allows depositors and signatories to continuously measure the risks of the system and people’s confidence in the system, while preventing over-enthusiastic early users from being affected by potential problems. Finally, we believe that in the long run, steady growth is the way to success.
Community support received by tBTC
In the past few months, more than 50 partners have supported tBTC. Recently, Scalar Capital’s Linda Xie, Synthetix’s Kain Warwick, TokenSoft’s Mason Borda, and Aragon’s Luis Cuende, among others, stated that they plan to use tBTC as a bridge between Bitcoin and Ethereum. Recent projects integrating tBTC include Matcha, UMA and FalconX. Earlier this year, Keep received approximately $8 million in financing. In Keep’s recent financing, tBTC also received $2 million from supporters such as IOSG and Digital Strategies. This shows that people’s demand for a safe and reliable connection between Bitcoin and Ethereum projects, and the community’s confidence in tBTC.
Playing for Keep activity
Playing for Keeps allows community contributors to learn how to pledge and earn KEEP tokens. Currently, the Playing for Keeps event has passed halfway, and a total of 7 million KEEP rewards have been distributed. The referees in the previous months included Zaki Manian of Cosmos, Spencer Noon of DTC, Viktor Bunin of Bison Trails, James Prestwich of Summa and Matt Luongo of Keep.
Join our Discord: You must join our Discord server and briefly introduce your personal information to be eligible to participate in the “Playing for Keeps” activity. We want to know everyone to make sure that we haven’t missed anything. Please make sure you join our Discord.
The “Playing for Keeps” entry information submitted in the self-introduction should include:
- The nickname you use in the channel
- Why you are interested in Keep or tBTC
- Your contribution-it may be an idea that is not fully formed!
- What you want to submit
For more detailed entry requirements, please refer to here.
Pledge airdrop situation
Keep’s pledge airdrop (stake ETH to earn KEEP) will start soon. In the next few weeks, as the pledge airdrop schedule progresses, follow-up progress will be announced. ETH holders will soon be able to earn KEEP by protecting the Keep network. In addition to pledged airdrops, there are also opportunities to earn KEEP through liquidity mining. Users will earn income by providing liquidity to the tBTC fund pool. Please continue to pay attention to more information about tBTC liquidity rewards. tBTC is the first application built on the Keep network, allowing people to safely use their BTC to earn income. Anyone can deposit their own tBTC in order to take full advantage of Ethereum. Anyone with funds and expertise can earn income by participating in pledges and providing support.
Follow the Discord channel to learn all about tBTC.
