Adding tBTC to Curve Finance Liquidity Pool
What is Curve
Curve is an exchange liquidity pool on Ethereum (like Uniswap) designed for (1) extremely efficient stablecoin trading (2) low risk, supplemental fee income for liquidity providers, without an opportunity cost.
Curve allows users (and smart contracts like 1inch, Paraswap, Totle and Dex.ag) to trade between DAI and USDC with a bespoke low slippage, low fee algorithm designed specifically for stablecoins. Behind the scenes, the liquidity pool is supplied to the Compound protocol, where it generates income for liquidity providers.
Main difference between tBTC and others pegged BTC tokens
Decentralization is the main differential of the tBTC project, as it gives any user with BTC (and some ETH for gas fee) the ability to mint tBTC using a network of signers. Unlike previous solutions, there is no central custodian holding the blocked BTC. The signers are selected at random and a different group of 3 signers is selected for each TBTC minted. The 3 signers provide a guarantee (in ETH), which ensures that they cannot simply run away with the funds.
If they deviate, anyone can provide evidence that the signers behaved badly. In return, the accuser is rewarded with the signers ETH used on collateral. Since the 3 signers securities are over-collateralized, they have more to lose than gain by running away with BTC.
Step by step tutorial on how to add tBTC to Curve liquidity pool
- First of all you have to access curve.fi website, and then you will need to connect to your wallet, in my case I’m connecting via Metamask, so I clicked on the Metamasc icon.
2. After clicking on the Metamask menu, the wallet opened automatically asking me for connection permission, so I clicked “Next” and “Connect”.
3. After your wallet is connected to Curve, click on the menu in the top bar in the left corner, and click on the “tbtc” menu.
4. Then you will be redirected to the main swap page of tBTC, after that you will need to click on “Deposit”, also in the top menu, this time on the center of the screen.
5. After clicking on the “Deposit” menu, you will be redirected to the page where you can add your tBTC to a liquidity pool. For that to be possible, just input how many tBTC you want to insert into the liquidity Pool and select the gas price referring to the transaction and click on “Deposit & stake in gauge”.
6. Then your wallet will automatically open, after that, you have to pay the gas fee for the deposit and to stake, click confirm and wait for the transactions to be confirmed.
7. And that’s it, after the transaction and stake confirmations, your tBTC will be already in the liquidity pool and you will already be able to receive the respective yield and rewards.