Token holder DAO Governor Bravo Proposal
DAO Elected Representative Sponsors:
tBTC has successfully launched on Solana, but with limited usage and in competition with existing efforts to bring native wBTC to Solana. There exists an opportunity now for a first mover advantage to establish tBTC as the new canonical BTC on Solana. To do that, the cold start problem for tBTC TVL and volume on Solana needs to be addressed immediately with new protocol integrations that increase the liquidity & utility of tBTC as collateral.
This is a proposal for the Threshold DAO to engage in a partnership with Mango & Dual DAO to deliver products supported by CKS Systems liquidity to bootstrap TVL for tBTC across the Solana DeFi ecosystem.
These protocols are better together and a more liquid BTC market on Solana via tBTC is collectively beneficial for T, MNGO, DUAL and even SOL. By making this benefit clear to the respective communities it’s possible to engage a positive feedback loop to grow tBTC. The proposed deal structure is designed with this in mind and includes treasury swaps in the form of on-chain call options to formalize the relationship of our mutual successes.
- Oracle Creation, Funding and Support
- Mango Markets/Openbook tBTC listing & market making
- Treasury Diversification switches to use tBTC instead of wBTC
- Purchase and hold up to $3M of tBTC
- tBTC option market & liquidity on Dual Finance
- Add tBTC collateral weighting to Mango Markets
- Primary liquid BTC market on Solana DEXs
Who Is Involved:
Mango DAO, Dual DAO, CKS Systems, Threshold Token Holder DAO, Threshold Treasury Guild
Mango Markets is the top derivatives DEX on Solana to trade, lend and borrow with a CEX-like orderbook experience.
Dual Finance is an options protocol focused on developing an incentive infrastructure that productizes market making.
CKS Systems is a DeFi native market maker born out of collaboration between Mango Markets & Dual Finance to bring back liquidity to Solana.
Complete on-chain market making program to increase tBTC TVL, liquidity and volumes on Solana order book DEXs and unlock tBTC collateral on Mango Markets & Dual Finance. Liquidity and operational support are provided by CKS Systems.
Per recommendation of DAO representatives and to better demonstrate the process, the treasury diversification has already switched to using tBTC. The result is Mango DAO now holds the majority, 70% of tBTC TVL on Solana.
This proposal is designed to be fully executed on Solana and does not require any OTC lending or custody operations. Following the T transfer to the Threshold Treasury Guild, they will bridge T and mint T options on Solana using the Dual Finance program - this can be done using SPL-Governance, Squads multi-sig or a standard wallet.
The following table outlines the timeline of deliverables, expected results, incentives and rewards.
*Incentives in T options are distributed 10% to Mango DAO, 10% to Dual DAO, 80% to CKS Systems.
**Rewards are issued from Mango & Dual DAO to the Threshold Treasury Guild. If and when TTG wants to exercise these, they can physically exercise on-chain or source a bid from CKS Systems for USDC on ethereum
- Make tBTC the canonical, dominant, trusted form of BTC on Solana, supported by a full suite of on-chain products.
- Support a set of oracles to provide easier tBTC integrations
- Increase Solana tBTC trading volume on spot CLOB DEXs
- Target key potential holders for tBTC TVL, in addition to the Mango DAO treasury
- Create value for tBTC collateral across the Solana ecosystem
- Develop a liquid option market for tBTC
- Spread tBTC awareness through a public dashboard tracking growth
Why these partners?
- Partnering with Mango & Dual will help integrate tBTC quickly to become entrenched in Solana DeFi
- Liquidity is expensive & paramount for tBTC success - existing efforts will likely go to mercenary farmers
- Provides compelling DeFi use cases which users need to underwrite the risk of using non-native assets
- Uniquely experienced team in market making, options, cross-chain liquidity and creating DeFi products
- Proven track record bridging new assets and liquidity for Solana tokens - CHAI
- Tokenized options are a trustless solution with low overhead and aligned incentives
- Collective interest in each project’s growth and success
- Explore new DeFi primitives and opportunities only possible on Solana
Transfer 20M T to the TTG. Subsequently, bridge to Solana & mint the T option tokens