tBTC Becomes the First Incentivized BTC Asset on EigenLayer

New York, NY, September 17th, 2024

• tBTC on EigenLayer introduces new restaking opportunities, catering to the growing demand in the crypto market.
• EigenLayer’s adoption of tBTC highlights its significance as a decentralized asset, enhancing the BitcoinFi ecosystem.

Threshold Network, the decentralized autonomous organization behind tBTC—the first asset linking Bitcoin and other blockchain technologies—has announced the official acceptance of tBTC deposits by EigenLayer, marking it as the first incentivized bitcoin asset on the platform.

“Threshold’s collaboration with EigenLayer highlights the rising demand within the BitcoinFi community for staked Bitcoin. This represents a significant move towards maximizing Bitcoin’s earning potential for its users,” said MacLane Wilkison, contributor to Threshold. “This integration is a powerful endorsement of tBTC’s role in securing the BitcoinFi ecosystem through asset diversification. Renowned protocols like Curve, GMX, and Compound have already incorporated tBTC for its flexibility as one of the most decentralized wrapped assets available.”

The Threshold Network DAO, which oversees tBTC, is offering incentives of up to $45,000 in T tokens over the first three months for newcomers who deposit tBTC into EigenLayer. Users can leverage EigenLayer to enhance capital efficiency by opting to secure additional protocols through restaking. This approach bolsters economic security by utilizing Bitcoin’s robust stability—representing more than 50% of the overall crypto market cap—and aligns its long-term non-inflationary characteristics with the Proof of Stake (PoS) consensus model. Notably, just 7% of Bitcoin’s total supply, if restaked, would provide comparable economic security to that of Ethereum, illustrating Bitcoin’s potential within the PoS framework.

“The addition of tBTC as a restakeable asset on EigenLayer marks a significant advancement in fostering open innovation by connecting to the Bitcoin ecosystem. This expansion not only increases the range of assets that can help secure decentralized networks but also enhances options and utility for Actively Validated Services and restakers,” commented Sreeram Kannan, Founder and CEO of Eigen Labs.

As Bitcoin staking initiatives like Babylon, Lombard, and Acre emerge, EigenLayer’s acceptance of tBTC showcases the potential of Bitcoin restaking in encouraging users to engage Bitcoin beyond its traditional store of value. tBTC’s capacity to bridge the Bitcoin and Ethereum ecosystems positions it as a key player in the growth of the BitcoinFi landscape.

About Threshold Network:
Threshold Network provides decentralized cryptographic services that enhance privacy and security on public blockchains by distributing operations among independent nodes. Utilizing the T token, users can stake and operate nodes to support essential services like tBTC, a Bitcoin bridge, and TACo, an access control tool. By reducing dependence on centralized entities, Threshold promotes trustless, secure, and privacy-centered solutions for decentralized applications in the evolving Web 3.0 ecosystem.

About EigenLayer:
EigenLayer is a protocol built on Ethereum that has pioneered restaking, creating a new foundation for cryptoeconomic security. With its network of interconnected smart contracts, any ERC-20 token, including tBTC, can be restaked to participate in numerous Actively Validated Services (AVSs) in exchange for fees and rewards. Operators can engage in these opportunities by running additional node software and, in specific cases, permit EigenLayer smart contracts to enforce extra slashing conditions on their assets as outlined by the AVS.

Contact: M Group on Behalf of Threshold
[email protected]

This article was originally published on Chainwire.