Proposal: cbBTC as an option for JLP

Jupiter Products Perpetuals
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Proposal: cbBTC as an option for JLP

Author: Andrew Allen, a Protocol Specialist at Coinbase
Created: 2024-11-02T05:00:00Z

References

Project - https://www.coinbase.com/cbbtc
SPL Token CA - cbbtcf3aa214zXHbiAZQwf4122FBYbraNdFqgw4iMij
Other resources: Whitepaper | Help page

Summary

In response to @siong’s request for viable BTC wrappers on Solana to support JLP, we’d like to present cbBTC. cbBTC on Solana is an SPL token natively issued by Coinbase.

Coinbase plans to enable send/receive of cbBTC to Solana within a week.

We believe that adopting cbBTC as a secure BTC wrapper with very accessible on/off ramps will benefit JLP holders.

cbBTC Specifications

  • cbBTC is fungible 1:1 with a dedicated reserve of BTC held at Coinbase.
  • The process of minting (sending) and burning (redeeming) cbBTC ensures trust and transparency
  • Minting - When a user initiates a withdrawal of BTC held in their Coinbase account to a specified destination address / wallet, an equivalent amount of cbBTC is minted on the specified network and sent to the user’s address / wallet
  • Burning - When cbBTC is deposited to a user-specific Coinbase address, the cbBTC is burned and the corresponding amount of BTC is released from Coinbase’s reserve and assigned to the user’s account.
  • There are currently no burn or mint fees on cbBTC

Next Steps

Once cbBTC is live on Solana, we will update this thread with more tactical next steps based on the feedback received.

In the meantime, we are happy to answer questions regarding cbBTC, and look forward to the input from JLP holders as well as the broader Jupiter community.

Disclaimer: This post is for informational purposes only, and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, or (ii) intended to provide accounting, legal, or tax advice, or investment recommendations. Coinbase is the issuer of cbBTC.

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This is a huge benefit but could you tell us a few more benefits that cbBTC has compared to other wrapped btc counterparts?

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The heavy onboarding spaceship is about to arrive… wenwenwen??? ^___^

Welcome to the Jupiter forum, where n0thing turns from zer0 into s0mething.

Good proposal!

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I posted this in the discord awhile back and nobody commented. Came here to do the same but glad to see someone else is thinking.

You’re not going to get a safer btc than this on Solana. if there’s a better option than wbtc then there’s 0 point in not making the change and protecting JLP and the Jupiter brand.

I would also propose to reduce the weight of ETH by 50% and then split that 80/20 into cbBTC and SOL

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It’s fully backed by Coinbase. It’s a SPL token.

2 Likes