[Asset Offboarding Application] - $soBTC

Author: @Bobby_StableNode, Matt_StableNode
Date: 12/15/22
Status: Draft
Collateral Type Suggested for Offboarding: $soBTC (Sollet Wrapped Bitcoin)
Collateral Type Symbol: $soBTC
Onboarding Proposal: Onboarding $soBTC

Summary for Removal:

Sollet Wrapped Bitcoin was founded by project Serum through the development of one of their products, Sollet.io. With the recent issues of SBF, most projects, such as Sollet, are no longer supported, and the website has been taken down.

Detailed Explanation of Removal:

Bitcoin is a staple token, but $soBTC is a different story. $soBTC was supposedly backed by FTX/Alemeda, and FTX was the only place traders could redeem their Solana-based bitcoin for real bitcoin. Now that FTX filed for bankruptcy, there is no place to redeem $soBTC for BTC, essentially meaning it is no longer pegged to anything. Additionally, there is no ongoing management for $soBTC, which is managed by the Serum foundation. Serum announced their mainnet is now defunct due to the recent incident with SBF.

Finally, According to developers at blockchain indexer SolanaFM, 90% of soBTC is on wallets controlled by FTX or Alameda, meaning there is very little $soBTC liquidity left, as seen by the extremely low trading volume with only 38k in the last 24 hours. For these reasons, $soBTC is no longer a reliable asset and should be offboarded.

The four lending protocols on Solana with the highest TVL other than Jet have all delisted or deprecated $soBTC:


Financial Performance within Jet Protocol

  • While at one point jet had over $2 million TVL of $soBTC it now only has 0.3917 in the $soBTC pool

  • Only 0.0001 $soBTC is currently being borrowed on JET
  • The collateral rate is 0%

Even though Jet Protocol can and already has changed the collateral weight to 0, it is unlikely that users will even use $soBTC. We recommend an offboarding for $soBTC.

Security Risk Vectors

  • $soBTC goes to $0 if it can no longer be redeemed for BTC.
  • $soBTC is not backed by anything after FTX/Alemeda bankruptcy.

Supporting Links and Materials:

  • Chapter 11 Announcement by FTX: Here
  • $soBTC Chart: Here
  • $soBTC was backed by FTX/Alemeda: Here
  • $soBTC can no longer be redeemed for BTC: Here

@Marco Can we move this forward?

full support from my side.


The Jet Governance Committee has decided to promote this proposal to an on chain vote. The vote will commence next Tuesday.


$soBTC Off-Boarding On-Chain Results

JetDAO Community:

The $soBTC token offboarding governance vote for Jet Protocol is now complete. We are grateful to everyone who cast their vote and contributed to the development of Jet’s future.

1.09 million $JET were cast in favor of the proposal to offboard $soBTC from Jet, resulting in 99% of the vote.

We look forward to your participation in future proposals!

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