Locked FBTC Token
Locked FBTC, namely FBTC1 for easy reference, is an innovative asset within the FBTC ecosystem, designed to support a wide range of yield generation scenarios. As a versatile ERC-20 token, Locked FBTC offers multiple yield strategies, enhancing the value proposition for users seeking to maximize their returns. Unlike FBTC0, which is pegged 1:1 with BTC and does not support automatic yield generation, Locked FBTC is specifically tailored for yield generation, ensuring users can leverage various strategies effectively.
Key Features
Yield Generation
Locked FBTC is designed to support various yield generation scenarios, allowing users to earn returns on their assets through multiple strategies. This makes Locked FBTC a powerful tool for users looking to maximize their returns within the decentralized finance (DeFi) ecosystem.
Multiple Yield Strategies: Locked FBTC supports a variety of yield strategies, including staking, lending, and liquidity provision.
Flexible Yield Scenarios: Users can choose from different yield generation scenarios based on their risk appetite and return expectations.
High-level Workflow
Mint Locked FBTC
A FBTC0 holder transfers his FBTC0 to a partner’s vault.
Periodically, Partner deposits FBTC0 to FBTC1 contract to initiate a request to mint FBTC1 and burn FBTC0.
Bridge Monitor sends the withdrawal request to transfer the corresponding BTC from BTC0 address to BTC1 address. BTC1 address is for Partner’s yield strategy use only.
FBTC TSS Gateway confirms the FBTC0 is burned properly.
Burn Locked FBTC
A user initiates a request to redeem FBTC. Partner may collect such requests, and transfers BTC from BTC1 address to standard FBTC’s custody address BTC0 periodically.
Once BTC is received at BTC0 address, FBTC1 contract initiates a request to mint FBTC0.
FBTC TSS Gateway will confirm FBTC0 is minted.
Partner Vault withdraws FBTC0 from FBTC1 contract and burns FBTC1 at the same time.
Partner returns FBTC0 to the user from Partner Vault.
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