frBTC Overview
Interoperable BTC on Bitcoin L1
frBTC
is the Bitcoin DeFi-compatible asset pegged 1:1 to BTC and interoperable across every DeFi ecosystem on Bitcoin L1.
This is achieved through a trust-minimized process that locks BTC on the Bitcoin mainnet (Layer-1) and atomically mints a corresponding amount of frBTC
for the user.
Tokenomics: The exact amount of circulating frBTC
will be the exact amount of BTC locked on mainnet via the SUBFROST protocol.
Plan for frBTC
- SUBFROST will first launch
frBTC
wrapping through partner integrations, like the OYL AMM on Alkanes. This will allow users to conveniently wrap their BTC without leaving these DeFi applications. - Soon after, we will collaborate with these partners to integrate the
frBTC
wrap contract into the front of their transactions. This will enable users, in a single transaction, to enter advanced DeFi apps on Bitcoin with native BTC, completely abstracting-away the need to wrap their BTC first.
This will be the first time in history, across any blockchain, that a user can swap native BTC to something like a USD stablecoin, atomically, in an entirely decentralized manner with minimal trust assumptions (Bitcoin consensus + FROST cryptography).
frBTC
will be live on Alkanes shortly, and our team is well positioned to expand to BRC 2.0, OP_NET, Arch, etc. after each is launched to mainnet.
Wrapping Process
Wrapping involves creating a Bitcoin transaction that performs two actions simultaneously:
- Lock BTC: Your BTC is sent to a secure, multisignature address controlled by the SUBFROST signers.
- Mint frBTC: An
OP_RETURN
output in the same transaction contains instructions for the Alkanes metaprotocol to mint an equivalent amount offrBTC
and assign it to your SUBFROST address.
Unwrapping Process
Unwrapping is the reverse process, the SUBFROST signers will cooperatively sign a Bitcoin transaction which is automated and secured by the SUBFROST protocol:
- Burn frBTC:
frBTC
is burned on the SUBFROST protocol. - Unlock BTC: An equivalent amount of BTC is released from the multisig address back to the Bitcoin address the user specifies (typically their wallet).