[Asset Onboarding Application] - $SOBTC - Sollet Wrapped BTC

[Asset Onboarding Application] - $SOBTC - Sollet Wrapped BTC

Dear Community,

Today marks the launch of the final asset application to confirm the community’s approval of existing assets in use on Jet Protocol. This process of confirming existing assets has allowed both the Jet Core team, and the community to fine tune this process in preparation to welcome new assets to the project.

For Token Tuesday this week, we are confirming the community’s desire to continue supporting Sollet Wrapped BTC (SOBTC) as a collateral type. We will simultaneously launch the off-chain community sentiment poll at the time of this application’s submission, and encourage all Jet community members to discuss the pros and cons of retaining SOBTC as a collateral type, and vote using your Forum account.

Off-chain voting for the community sentiment poll for SOBTC start today and run until Monday July 20th.

On Tuesday, July 21st, we will move this vote on-chain for JET token holders to cast the binding vote.

Interested Party Profile

Party submitting application: Marco
Website: sollet.io
Contact: marco@jetprotocol.io
Submission Date: 14-June-2022
If endorsed by Jet Community Member, list here: Member of Jet Core team

Application Profile

1. What is your motivation for submitting this application?

Sollet Wrapped BTC (SOBTC) is the third of three confirmation votes for assets already in use as collateral on Jet Protocol. The purpose of this application is to provide JET token holders the informatoin necessary to evaluate SOBTC’s continued use as a collateral on Jet Protocol, and conclude the series of confirmation votes before welcoming new assets to the protocl.

2. What is your association to the proposed asset?

No association

3. What are the key benefits to the Jet Protocol for onboarding the asset?

SOBTC is the most liquid form of bitcoin on the Solana network. This blue chip asset creates a compelling opportunity for users of Jet Protocol to utilize their existing, battle tested asset as the foundation for their defi strategy, while also welcoming new, multi-chain defi users to Solana. Jet Protocol gains an asset that leads the industry in store of value to support growing the protocol’s TVL.

4. What are the known limitations of the asset?

Sollet Wrapped Bitcoin does not have the same amount of liquidity as the native Bitcoin network. There is also risk introduced anytime an asset is bridged from their native blockchain to Solana.

Project Profile

1. Please provide a brief, high-level description of the asset’s native ecosystem (project), including protocol’s type (peer-to-peer/ peer-to-liquidity/ etc.).

In its native ecosystem, BTC works as a peer-to-peer payment system, as well as a token to pay fees within the transactions. Categorized as the oldest cryptocurrency, BTC is considered as a store of value asset and served as inspiration for many other blockchain networks in the crypto ecosystem.

2. Who are the founding members? What is their current involvement with the project?

Sollet Wrapped Bitcoin was founded by Project Serum through the development of their open-source wallet, Sollet.io. Project Serum was a joint venture between FTX and Alameda Research and started as an informal project between the companies. FTX and Alameda Research founder, Sam Bankman-Fried, originally lead the project team. The project team quickly separated from their original companies and formed a development foundation. The founding members are pseudonymous. Bankman-Fried is no longer involved with the project, and it’s been reported on Twitter the team assigned to Sollet internally is no longer prioritizing work on Sollet.

3. Please indicate the ICO date, initial price and valuation of the token and total capital raised (in USD and crypto terms).

Sollet Wrapped Bitcoin did not have ICO.

4. How much of the capital raised via the ICO was converted into FIAT (in terms of FIAT currency and amount of tokens)?:

N/A

5. What was the way of issuing and distributing the tokens? Were there pre-ICO investors?

The Sollet bridge launched in April 2021, allowing any holders of bitcoin on the Bitcoin network to mint SOBTC-SPL on a 1-to-1 basis against the underlying BTC. Price was, and is, pegged to the price of native BTC.

6. What is the current token distribution (project team vs. investors vs. public)?:

The project team/investors did not receive any distribution. SOBTC tokens are distributed purely among public users.

7. Are there any fees generated by the protocol? If yes, please provide details and amounts:

Sollet does not generate any protocol fees from users of its protocol when bridging assets.

8. Is the protocol audited? By what firms? Please provide link(s) to the audit documentation.

Documentation on if Sollet.io is audited is not found online.

9. Is the protocol open source? If yes, please provide links to the repository.

Sollet is released as open source, and the repository can be found here: GitHub - project-serum/spl-token-wallet

10. Other relevant project data or comments:

Asset Profile

1. Asset name:

SOBTC (Sollet Wrapped bitcoin)

2. Asset type (native/ wrapped):

Wrapped

3. **One-sentence description of the asset:

Sollet Wrapped Bitcoin is an SPL token minted when a bitcoin is bridged from the native Bitcoin network to the Solana Ecosystem.

4. What’s the purpose of the asset within its native ecosystem?:

Within its native ecosystem, Bitcoin is used as a peer to peer payment system. BTC is also the method for paying miners for their work securing the network, through a transaction fee.

5. Does the asset have any use outside of its native ecosystem (integrated protocols)?:

Yes, BTC has become a staple of Defi through the use of the token on smart contract enabled blockchains and wrappers.

6. Please provide all Smart Contract address. If the project is open source, detail how the Smart Contracts are implemented.

SPL Token Mint Address: 9n4nbM75f5Ui33ZbPYXn59EwSgE8CGsHtAeTH5YFeJ9E
Sollet Token Account: G6GYrtSV9bjA2nyg8MdCjAuonm3PnDedTbzmbBCV1PWr
Solana Authority Account: 6krMGWgeqD4CySfMr94WcfcVbf2TrMzfshAk5DcZ7mbu

Asset Liquidity

1. What exchange(s) support the asset?

Serum - Jupiter Aggregator - Raydium, Orca - among others.

2. Does the asset have liquidity on Serum? What is the liquidity depth (resting orders)

Yes it does.

3. Please provide 7-day asset trading history (daily aggregated trading volumes for trading pair of asset with USDC).

SOBTC had 82.5M in trading volumes during the ween of June 6th. Serum and Orca are the largest markets.

4. Which oracles monitor the asset? How many feeds are available?

Pyth

5. How often does the asset drop significantly in price?:

SOBTC is pegged to the price of BTC, therefore it has drop significantly in price once since launching in 2021.

6. For stablecoins only: Has the asset ever lost the peg? If yes, for what reason?

N/A

7. For algorithmic stablecoins only: Please provide details on the risks associated with the design.

N/A

8. For wrapped assets only: Which bridges are used? Are they custodial or non-custodial? Are they audited?

Sollet is a non-custodial bridge. Documentation of any audits are not found online. This is an open source project.

10. What amount of asset’s liquidity exists in the integrated protocols (if applicable)?

Protocol Pair 24-hr Volume
Serum SOBTC/USDC $9.4m
Jupiter Aggregator SOBTC/USDC $8.6m

12. List any parties interested in taking part in liquidations for the proposed asset type.

Potentially, any DeFi user due to bitcoin’s blue chip status.

Key Mechanics

1. How many active addresses/ users currently hold the asset?

7,496 active addresses.

2. Please provide a brief overview of the tokenomics.

SOBTC is a wrapper for BTC. If a user desires to use BTC on the Solana network, they can mint SOBTC using Sollet’s contracts to lock up BTC on Bitcoin, and mint SOBTC on Solana. A user can also swap back SOBTC for BTC on a 1-to-1 basis. No fees are collected in SOBTC during this transaction.

3. Is the asset supply expected to increase or decrease over time? Is there a token burn mechanism? Is the project able to mint more tokens in the future?

The total supply of Sollet Wrapped Bitcoins could increase over time since any BTC holder is able to bridge their tokens to SPL. The total supply of BTC is capped at 21m

4. Please explain the staking mechanism (if any).

N/A

5. Please explain the slashing mechanism (if any).

N/A

6. Are there tokens on vesting schedule? If yes, what is that schedule and related vesture limitations?

N/A

7. Are any tokens allocated for specific purposes or issuance schedules (e.g. liquidity mining)?

N/A

Legal Profile

1. Is the project or the asset owned by any incorporated organization?

SOBTC is created by the Sollet bridge. Sollet is a non-custodial wallet which uses an open source, permissionless bridge to mint SOBTC. No organization owns SOBTC. Ongoing management of the Sollet smart contracts is controlled by the Serum Foundation, and is operating as a DAO.

2. In which jurisdictions was the token issued?

SOBTC is an open source, non-custodial project created by the Serum Foundation. Sollet operates as a permissionless solution, meaning the token was issued under no jurisdiction.

3. Was the token issued as part of regulatory process (e.g. securities offering)?

No

4. Was the token issued as part of fundraising process?

No

5. Has the project or the asset obtained any legal opinions on the regulatory standing of the token? If yes, please provide links to the relevant documentation.

None that can be found online.

6. Has the project or the asset had any legal interactions? If so, describe and provide documentation.

Serum has sited increased legal scrutiny as a reason for decentralizing their operations into a DAO. Outside of this, no legal interactions are discovered online.

Links

Link to project’s white paper:

Link(s) to active communities related to the project:

Link(s) to project’s documentation portal/ source code for the system(s) that interact with the proposed asset:

Link(s) to audits - both procedural and Smart Contracts:

  • Project Serum quality process has been audited by DefiSafety

Link(s) to legal opinions:

N/A

Link(s) to other legal material:

N/A

Other relevant links:

List all relevant Solana addresses here:

  • Wrapped Bitcoin Sollet Address: 9n4nbM75f5Ui33ZbPYXn59EwSgE8CGsHtAeTH5YFeJ9E
  • Sollet Token Account: G6GYrtSV9bjA2nyg8MdCjAuonm3PnDedTbzmbBCV1PWr
  • Solana Authority Account: 6krMGWgeqD4CySfMr94WcfcVbf2TrMzfshAk5DcZ7mbu*
Should JET/SOBTC be included as an asset type on Jet Protocol?
  • Yes
  • No

0 voters

5 Likes

Well written & informative write-up.

Thank you @MJSchobert !

3 Likes

This is the last vote for assets currently onboarded on Jet V1 - let’s get to it!

4 Likes

well informative and detailed. let’s get it on.

3 Likes

Dear Community:

Below we will detail the results of the Off-Chain vote and the community sentiment for the $soBTC proposal. Along with this, we attach a summary of the CODEC evaluation that the $soBTC asset has received from the Governance Committee.

We invite those users who have staked JET tokens to cast their vote in this On-Chain vote. Remember that in order to execute your vote you must have at least 1 (One) JET token deposited.

The $soBTC On-Chain voting will be executed via the governance platform starting on 06/21/22 and will be live for the following 7 (Seven) days.

We appreciate your collaboration and invite you to participate in the upcoming proposals! For the latest information, visit our sites:

[Summary of CODEC Assessment ] - $soBTC

The following summary exposes the key points from the $soBTC Collateral Onboarding Domain Evaluation Criteria.

Overall, the Jet Governance Committee endorses $soBTC to move forward with an On-Chain vote.

The full CODEC Evaluation Summary can be found here.

Click this link for the full version of the asset’s application.

Community Discussion Summary:

Participants have demonstrated motivation to move towards On-Chain voting for $soBTC to continue using this asset as collateral on Jet Protocol.

Community Vote Summary:

With 100% positive votes to continue using $soBTC as collateral in Jet, the proposal has resulted in: Yes.

7 Likes

The on-chain vote for soBTC is now live! This is the final vote for assets already onboarded to Jet Protocol!

4 Likes

Dear Community,

The on-chain governance vote for $soBTC has concluded.

Thank you to all those that have participated in shaping the future of the Jet Protocol.

With 99% of the vote, $soBTC has been approved for onboarding. With the asset already in use, this concludes the confirmation vote series for assets and Jet Protocol, and prepares the community to vote on new assets in the coming weeks.

In case you want to review the $soBTC application, community discussion, and CODEC Summary, please go to this link.

I look forward to everyone’s participation in the next governance vote!

1 Like