Operating as a tBTC redemption facilitator and staker of T Threshold

General
1

Hi

tBTC volume on YB is lower than WBTC and cbBTC due to redemption cost of 20 bps (0.2%), which is not the case for cbBTC ar WBTC that is redeemeable on Coinbase or other exchanges.

However if staking T (the token of Threshold network), there is a discount on redemption fees.

According to the table , for 100,000,000 T staked, for 500 BTC bridged per month, 1tBTC fee reduction = 20 bps fee are going to 0bps.

image
image1654×764 161 KB

So there could an opportunity for YieldBasis to operate as redemption facilitator and earn tBTC yield on this activity.

Standard redemption are 20 bps

YieldBasis redemption could be 10 bps (10 bps discount for redemption and 10 bps fee for YB)

Steps would be

1 Purchase or borrow or pool from users 100,000,000 T

2 Stake

3 Launch a redemption market ybtBTC => BTC

This could add a new revenue stream for YB

@michwill what do you think?

2

Interesting - can check it out. But that’s more for arb traders essentially to do!