Diversify WBTC/ iBTC holdings to alternative BTC products

Definitely see the benefit in doing this, unfortunately, there are issues with our current usage of iBTC and WBTC:

IBTC:
Hydration currently possesses a large % of the iBTC issuance, and the Interlay vaults do not have the capacity to support more bridging/minting of iBTC leading to issues with the price of iBTC due to not being able to effectively arb the token (bad)

WBTC:
I'm sure we've all seen some of the issues around WBTC and the multisig change.

I would typically lean towards the more decentralized offering, so in this case tBTC. The tBTC product seems fairly easy to use, and like you said if we can get it supported on Snowbridge it could be pretty good

Add remark: Use H2o from 2pool btc stablepool as buyback immediately.

Then i am 120% aye.

Did I understand it correctly
"add iBTC & WBTC to Omnipool directly (half of our current 2-Pool equivalent)" means
it would add just about 8,5 iBTC and 8,5 Wbtc back to omnipool
and convert/diversify the remaining aprox. 8,5 iBTC and 8,5 Wbtc (+11.3 from MM) to tBTC (1/3 to something else)?

The ideal answer should be a trustless option like iBTC, but I get that this isn't working out at the moment and that alternatives should be explored. I personally would run away from WBTC as fast as possible. cbBTC > WBTC, but is still far too centralised for my tastes (sidebar: I'm more comfortable with centralised stables due to their relationship with fiat than I am with something like BTC which I hope continues to systemically decouple from nation state controlled assets). tBTC looks like a decent option in the short to medium term, although I personally won't move over any more than a small amount of BTC to any DeFi platform until a functioning trustless option for BTC exists.

Yes please.

some ibtc-> hdx

Yes

How are you going to get out of iBTC without tanking the price since we are one of the largest holders of iBTC?

iBTC is a native to Polkadot and works really well, but lacks liquidity in the vaults to issue more iBTC. Supporting iBTC makes more sense than hooking up to tBTC.

I am one of the few remaining vault operators and would be happy to setup and maintain more vaults, but need additional collateral to do so. If anyone is interested in a collaboration, then drop a line below.

This is a timely and thoughtful proposal that addresses the risks of relying heavily on centralized BTC products like WBTC and iBTC. Diversifying into tBTC is not only a strategic move but also aligns with the core ethos of decentralization that underpins DeFi.

tBTC, being a fully decentralized and permissionless Bitcoin bridge, mitigates the inherent risks of centralized custody while enabling robust participation in DeFi. The recent momentum around tBTC, including its integration across major protocols highlights its growing recognition as a decentralized alternative for Bitcoin-backed assets.

Integrating tBTC into Hydration DAO’s treasury and deploying it in the Omnipool and Money Market are excellent ideas. This move would:

Reduce reliance on centralized assets like WBTC and iBTC, improving the DAO’s overall risk profile and align with DeFi’s values of trustlessness and censorship resistance which are essential for long-term resilience.

As a Threshold DAO contributor, I’m available to assist with any questions regarding tBTC’s integration, its technical structure or potential synergies with Hydration DAO’s goals.

I believe this proposal is a forward-thinking approach that will position Hydration DAO as a leader in supporting decentralized BTC solutions.

Let’s work together to make this transition seamless and impactful for the DAO. My x account @mcitizen42