I searched the site, and couldn’t find any discussion on this. So the proposal is to use the terra stablecoin mechanics to create a BTC pegged TerraBTC “stablecoin”. Stable in the sense that it is 1-1 pegged to BTC. Why do this?
- It enables same benefits on Terra that WBTC enables on Ethereum, and without custody
- Using TerraBTC as collateral on Mirror, without having to create a CDP. mBTC-UST LP has fairly low liquidity
- Writing smart contracts involving BTC, albeit through a peg
BTC is emerging as a new world currency, and I think it should be treated as a first-class citizen in the Terra network.
- TerraBTC would allow BTC denominated savings/loans in Anchor. I think that would garner a lot of interest for Anchor + Terra.