This proposal discusses adding WBTC.eth.atom (WBTC bridged to Osmosis from Ethereum via the Cosmos Hub's Eureka product) as a constituent of Alloyed BTC with an initial static limit of 5%.
WBTC.eth.axl (Axelar bridge from Ethereum) (75% Cap)
WBTC (Natively Issued on Osmosis)
ckBTC (Chain-Key Bitcoin via ICP) (35% Cap)
nBTC (Nomic Bridged Bitcoin) (35% Cap)
cbBTC (Coinbase Bitcoin via Axelar) (75% cap)
This proposal requests that WBTC.eth.atom be added to the existing Bitcoin Alloy, enabling WBTC deposits via Eureka.
While Alloyed BTC has substantial exposure to WBTC already, this addition diversifies the bridging routes available and is integrated into Skip routing.
This proposal adds an initial static rate limit of 5% (~600k exposure) to bound risk to Alloyed BTC for a new variant on a newly deployed bridging product. This may be further expanded by governance as adoption grows and transfers occur without incident.
For a complete description of Alloyed Assets, see the Blog Post.
Eureka is the first major interoperability protocol built on IBC v2, a more efficient and transparent solution for cross-chain asset transfers.
Unlike traditional bridges, Eureka allows for permissionless, secure, and cost-effective asset transfers, bringing new liquidity into the Cosmos ecosystem via the Cosmos Hub and facilitating the expansion of multichain applications.
