Adding tBTC to Sushiswap Liquidity Pool
What is Sushiswap
SushiSwap is a fork of Uniswap with some important differences — most notably, the SUSHI token. The token has two functions at launch: giving holders governance rights and part of the fees paid for the protocol. In a simplified way, SUSHI holders “own” the protocol.
What is tBTC?
tBTC is a Bitcoin-backed ERC-20 token pegged at the price of Bitcoin. Facilitates Bitcoin holders to act on Ethereum blockchain and access the decentralized finance (DeFi) ecosystem. tBTC is an open source project supported by groups including Keep, Summa and Cross-Chain Group.
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 Sushiswap liquidity pool
- First of all access the link: https://exchange.sushiswapclassic.org/#/add/0x8daebade922df735c38c80c7ebd708af50815faa/and choose a token to pair with tBTC on the liquidity pool that you wish to add liquidity, remembering that these pools work in pairs, so there will be a need to have available on your wallet the tBTC counterpart on the other token which you will use as tBTC pair.
2. After choosing the token that will pair with the tBTC in the liquidity pool that you will add liquidity to, click on “Approve TBTC” and pay the gas fee corresponding to the transaction (I recommend checking at ethgasstation.info website to evaluate the best gas fee price to pay at the moment).
3. After confirming the gas fee payment, the transaction will be processed and after a period corresponding to the gas fee, it must be completed, and consequently your tokens will already be on the liquidity pool and you will already be eligible to earn yield from the transaction fees paid by users.
