New listing: Cross-chain WBTC and WETH - Algorand app

Intro

Wrapped Bitcoin (WBTC) and Wrapped Ether (WETH) are asset representations of the two largest cryptocurrencies by market cap, enabling users to deploy their BTC and ETH exposure across lending, borrowing, and yield strategies.

Implementation

Leveraging the NTT framework, users will be able to move WBTC and WETH from Ethereum to Algorand and vice versa seamlessly via https://xportal.folks.finance/. Native ETH is also supported, no need to manually wrap it before bridging.

Pool parameters

WBTC asset ID: 3495558025
WETH asset ID: 3495722210

Pool Parameters WETH WBTC
Variable Base (RV0) 0% 0%
Variable Slope 1 (RV1) 2.25% 4%
Variable Slope 2 (RV2) 100% 100%
Stable Additional Base Rate (RS0) 3% 3%
Stable Slope 1 (RS1) 2.25% 5%
Stable Slope 2 (RS2) 100% 100%
Stable Excess Rate (RS3) 25% 25%
Optimal Utilisation Ratio (Uopt) 80% 45%
Optimal Stable to Total Debt Ratio (Oratio) 20% 20%
Rebalance Up Utilisation Ratio (URU) 95% 95%
Rebalance Up Deposit Interest Rate Percentage (DIRRU) 5% 5%
Rebalance Down Delta (RD) 20% 20%
Retention Rate (RR) 15% 15%
Flash Loan Fee 0.10% 0.10%
Borrow Cap ($) $3,000,000 $3,000,000
Single Stable Borrow Percentage Cap 5.00% 5.00%
Loan Parameters WETH WBTC
Collateral Factor 75.00% 65.00%
Borrow Factor 100.00% 100.00%
Collateral Cap ($) $5,000,000 $5,000,000
Liquidation Max 50.00% 50.00%
Liquidation Bonus 5.00% 7.50%
Liquidation Fee 10.00% 10.00%
2 Likes

Hi,

wBTC and wETH liquidity are still quite low and there are a lot of wBTC (~$370k worth) and wETH (~$160k worth) in treasury, so maybe you can allocate some of those treasury funds into wBTC & wETH liquidity pools.

Other treasury assets: $82k USDC, $180k xALGO & $26k ALGO.

Maybe you can consider following allocations:

  • $40k into wBTC/USDC LP ($20k wBTC & $20k USDC)
  • $40k into wETH/USDC LP ($20k wETH & $20k USDC)
  • $50k into wBTC/xALGO LP ($25k wBTC & $25k xALGO)
  • $50k into wETH/xALGO LP ($25k wETH & $25k xALGO)

This will help these tokens a lot, because now basically only way to get these tokens is via bridge, but that is not really an option if you want to buy small amount. also these pools will help with peg, when arbitragers can trade decent amounts.

Regards,
ROAM

Hi Roam, thanks as always for your feedbacks.

We’ll be evaluating it internally and in case it will be put in a vote. Also, this summer we distributed incentives to those pool with an APY up to 70%, we might repeat the initiative in future

2 Likes