Author(s): @Marco Tags: asset-onboarding Asset Name: Sollet Wrapped BTC Asset Code: SOBTC Submission Date: 2022-06-14 Ratification Date: 2022-06-28 Status: Active Forum URL: https://forum.jetprotocol.io/t/asset-onboarding-application-sobtc-sollet-wrapped-btc/995/7
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.
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.
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.
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.
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.
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)?:
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.
The project team/investors did not receive any distribution. SOBTC tokens are distributed purely among public users.
Sollet does not generate any protocol fees from users of its protocol when bridging assets.
Documentation on if Sollet.io is audited is not found online.
Sollet is released as open source, and the repository can be found here: GitHub - project-serum/spl-token-wallet
SOBTC (Sollet Wrapped bitcoin)
Sollet Wrapped Bitcoin is an SPL token minted when a bitcoin is bridged from the native Bitcoin network to the Solana 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.
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
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.
SOBTC is pegged to the price of BTC, therefore it has drop significantly in price once since launching in 2021.
7. For algorithmic stablecoins only: Please provide details on the risks associated with the design.
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.
Potentially, any DeFi user due to bitcoin’s blue chip status.
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
6. Are there tokens on vesting schedule? If yes, what is that schedule and related vesture limitations?
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.
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.
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.
Link(s) to project’s documentation portal/ source code for the system(s) that interact with the proposed asset:
- Project Serum quality process has been audited by DefiSafety
- Wrapped Bitcoin Sollet Address: 9n4nbM75f5Ui33ZbPYXn59EwSgE8CGsHtAeTH5YFeJ9E
- Sollet Token Account: G6GYrtSV9bjA2nyg8MdCjAuonm3PnDedTbzmbBCV1PWr
- Solana Authority Account: 6krMGWgeqD4CySfMr94WcfcVbf2TrMzfshAk5DcZ7mbu*