tBTC Launches as First Incentivized Bitcoin Asset on EigenLayer

New York, NY, September 17th, 2024, Chainwire

tBTC on EigenLayer provides users with innovative restaking options to earn rewards as the demand for Bitcoin exceeds that of other cryptocurrencies
The integration of tBTC by EigenLayer highlights its significance as one of the most decentralized assets, enhancing the security and growth of the BitcoinFi ecosystem

Threshold Network, the decentralized autonomous organization (DAO) behind tBTC, the inaugural asset to bridge Bitcoin and Ethereum, has announced that EigenLayer, the restaking protocol developed by Eigen Labs, is now officially accepting tBTC deposits, making tBTC the first incentivized Bitcoin asset on EigenLayer.

“The integration of Threshold with EigenLayer reflects the BitcoinFi community’s growing demand for staked Bitcoin, marking a significant shift towards unlocking the full potential of Bitcoin for its users,” stated MacLane Wilkison, Contributor to Threshold. “This move underscores tBTC’s capability in safeguarding the BitcoinFi ecosystem by diversifying the assets at hand. So far, leading protocols like Curve, GMX, and Compound have leveraged the asset for its adaptability as one of the most decentralized wrapped assets available today.”

The Threshold Network DAO, which oversees tBTC, is offering incentives totaling up to $45K in T over the first three months for new users who deposit tBTC into EigenLayer. By utilizing EigenLayer, users gain a novel way to enhance capital efficiency by securing additional protocols through restaking. This strategy boosts economic security by harnessing the stability of Bitcoin—an asset that constitutes more than 50% of the global crypto market cap—and aligns its long-term non-inflationary characteristic with the Proof of Stake (PoS) consensus model. Remarkably, restaking only 7% of Bitcoin’s total supply could yield the same level of economic security as Ethereum, highlighting Bitcoin’s potential in a PoS context.

“The addition of Threshold’s tBTC as a restakeable asset on EigenLayer marks a significant advancement in open innovation by establishing connections with the Bitcoin ecosystem, expanding the variety of assets that can help secure decentralized networks, and offering enhanced choices and utility for AVSs and restakers,” remarked Sreeram Kannan, Founder and CEO of Eigen Labs.

With the rise of Bitcoin staking solutions like Babylon, Lombard, and Acre, EigenLayer’s adoption of tBTC demonstrates the potential of Bitcoin restaking to encourage users to leverage Bitcoin beyond its traditional role as a store of value. The capability of tBTC to connect the Bitcoin and Ethereum ecosystems makes it a prime candidate for advancing the BitcoinFi ecosystem.

About Threshold Network:

Threshold Network provides decentralized cryptographic services that enhance privacy and security on public blockchains by distributing operations across independent nodes. Powered by the T token, users can stake and operate nodes to facilitate essential services such as tBTC, a Bitcoin bridge, and TACo, an access control mechanism. By reducing dependence on centralized entities, Threshold pledges trustless, secure, and privacy-centric solutions for decentralized applications in the evolving Web 3.0 ecosystem. For more information, please visit: https://threshold.network/

About EigenLayer:

EigenLayer is an Ethereum-based protocol that has pioneered the concept of restaking, a new essential element in cryptoeconomic security. By employing a network of interconnected smart contracts, any ERC-20 token, including tBTC, can be “restaked” to engage in multiple Actively Validated Services (AVSs) in return for rewards and/or fees. Operators can opt into these opportunities by running additional node software and may, in certain cases, allow EigenLayer smart contracts the authority to impose further slashing conditions on their assets as set forth by the AVS.