(OGP4) - Add Wrapped Bitcoin (WBTC) Market to Overlay

*** This is a governance proposal to add a new market to Overlay ***

Overlay’s gated sandboxed version, Litter Box 1 has been launched a few days ago with participation of community members such as PCD NFT holders, early NFT holders and Overlay hoodie buyers.

In order to ensure a smooth transition from Litter Box 1 to Litter Box 2, and opening to more and more participants, the protocol should become more mature, with more and more markets to be launched.

As of today, the only market on Overlay is ETH/USDC (Uniswap v3), and this proposal is offering to add another Uniswap v3 market to Overlay. The reason behind adding another Uniswap v3 market is simple: it’s a lot easier to add a Uniswap v3 market than any other markets at the moment, before doing a further research about market, oracles and all other concerns. Thus, a number of Uniswap v3 pools should be added before adding an exotic market.

On Ethereum, it’s inarguable that Wrapped Bitcoin (WBTC) has the deepest liquidity right after ETH, and stablecoins such as USDT, USDC, and DAI. Moreover, Bitcoin is the number one cryptocurrency in terms of market capitalization, and it would be unfair to not add its wrapped version to Overlay before adding any other tokens.

Discord discussions on #Governance channel also shows the community’s tendency towards adding a WBTC market to the protocol.

Per Uniswap’s data, WBTC/ETH has more liquidity than WBTC/USDC, and PCD community should be the decision maker on ‘which one to add’ at this step.

After the criteria of Overlay Governance Framework met, a Snapshot poll will be open, and PCD NFT holders will be able to vote.

These are three options which are going to be offered on the Snapshot:

  1. Add WBTC/USDC Market
  2. Add WBTC/ETH Market
  3. Request another market

If PCD decides 1 or 2, the decided WBTC market is going to be added in the protocol in the upcoming days. If PCD decides 3, another discussion and poll will be opened.

Don’t forget that we want you to participate in discussions both on Discord and Forum before moving forward. So, let’s discuss about this new market!