tBTC is a sidechain designed to allow BTC holders a way to earn yield with their Bitcoin trustlessly, using decentralized finance (DeFi) applications.
3 steps to earn with your BTC
The goal of tBTC is to give BTC the expressiveness of a smart contract platform. tBTC makes it possible to use Bitcoin to act on Ethereum in three simple steps:
Call upon a “signers’ group” to hold the BTC
Once your BTC deposit is confirmed, receive TBTC at a peg of 1:1
The process in reverse is known as Redemption.
tBTC is open source
TBTC, built by the teams at Summa and Keep to the highest standards of cryptography, is fully open source. It uses an elliptic curve signature algorithm called t-ECDSA -- a more secure alternative to multisig that requires less space on chain.
tBTC uses a system of “signers’ groups” to process transactions without a trusted middleman. Signers operate in groups of three. All three signers must approve a transaction for it to proceed. Signers receive a fee of 20 basis points (bps) for every tBTC minted.
To ensure honest behavior, tBTC uses a random beacon to select signers, who must post a “bond” equal to 150% of the amount of BTC being deposited by the user. The bonded ETH is swapped for TBTC and can then in turn be redeemed for BTC in the case of stolen funds.
TBTC is fully backed by Bitcoin at a rate of 1:1.
Use BTC on Ethereum
Bitcoin accounts for most of the crypto assets in the world on a value basis, but Ethereum allows for more complex financial applications such as on-chain lending. tBTC lets people deploy their BTC into these DeFi use cases and other projects, where they have the opportunity to earn without selling.
Stay up to date
Join the tBTC mailing list for updates, including information about tBTC’s upcoming launch on Ethereum mainnet and opportunities to participate.
Follow #tBTC on Twitter for news and opportunities to participate.