ben.diamond
Dear d5000, Thanks for clarifying this helps, and I think were now very close conceptually. cBTC is explicitly a credit layer on top of BTC, not a claim to the same BTC value over time. In that sense, redemption…
Thanks again this is a solid thought experiment, but it assumes cBTC behaves like a pegged, leveraged, or liquidation-based system (BitUSD, MakerDAO, synthetic assets, perps, etc.). cBTC doesnt have a peg, no…
Hi d5000, Thanks for the thoughtful questions theyre exactly the right ones. 1. Why cBTC doesnt mechanically track BTC 1:1 cBTC is not a synthetic BTC or a delta-neutral derivative. Its price is market-driven and…
Thanks for your comment retaur, 1. Fixed fee option vs annualized rate Youre absolutely right to bring up the fee structure. One important clarification is that the 15% figure isnt a flat APR. LPs only reach the full…
Hi odolvlobo, A) About mathematical expressions: Thanks a lot for taking the time to go through the math expressions in detail your feedback is extremely helpful. 1. Youre absolutely right about the syntax. Some…
Hi BlackHatCoiner, Thanks for the comment and yes, Im very familiar with Liquid. Its a great system, but cBTC is fundamentally different in design and purpose. 1. Liquid (L-BTC) is a custodial 1:1 sidechain asset.…
Hi odolvlobo, Thanks for the question its an important point to clarify because it touches the core mechanics. The key detail is that LP BTC is never used to pay yield. The LPs deposited BTC stays intact and fully…
Hi Donneski, Thank you very much for taking the time to analyze the model and for leaving such a thoughtful comment. I genuinely appreciate it. You are absolutely right about the framing: cBTC is not a stablecoin in the…
Hi BattleDog, Thank you for your inside. You are completely right in your comment. Actually, it's more of a A Bitcoin-Backed Monetary Protocol than a Stable Value token. The vested BTC of the LP will be in a…
Hey folks, I want to share this design idea called cBTC and I’m hoping to get some genuine, technical thoughts from everyone here. So what’s cBTC? cBTC is a proposed stable-value unit that’s backed by Bitcoin, minted…
cBTC only has liquidity to the extent that other people choose to accept or trade it. The protocol doesnt assume automatic demand, and it doesnt try to manufacture one via pegs or incentives. In that sense, cBTC has…
Thanks for the thoughtful feedback these are exactly the right questions. On haircuts: theyre intentionally deterministic and transparent. Under stress, redemptions dont fail or cascade into liquidations; they…
Hey folks, I’m after some technical and conceptual input on this thing I’ve been working on called cBTC. The aim of cBTC is to see if we can use Bitcoin as productive capital (like working capital or credit) without…