[HBTC] MIP6 Collateral Onboarding Application

This is a MIP6 Proposal for the addition of Huobi Global’s HBTC to MCD.

HBTC is a standard ERC20 token with approximately 710 BTC market cap as of July 23, 2020.

1. Who is the interested party for this collateral application?

Huobi Global Limited, the issuer of the HBTC.
As a digital assets service provider, Huobi Global is far ahead of its competitors in establishing a global network of licenses. It has over thousands of employees and established subsidiary companies and partnership companies in 12 countries, including the U.S., Japan, Thailand, Gibraltar, etc. Huobi Global has been operating safely for 6 years without any security incidents.

2. Provide a brief high-level overview of the project, with a focus on the applying collateral token.

HBTC aims to solve the lack of Bitcoin in DeFi market. By issuing HBTC digital assets based on the ERC20 standard, the value of Bitcoin is transferred to Ethereum, which injects Bitcoin’s liquidity and stability into the Ethereum ecosystem.
HBTC strictly backed 1:1 by Bitcoin makes its value consistent with Bitcoin, preventing problems that may occur in synthetic assets, ensuring that users can use HBTC and BTC for 1:1 exchange at Huobi Global at any time.
The amount of HBTC issued,BTC reserved and relevant records are open and transparent on the website https://www.hbtc.finance/

3. Provide a brief history of the project.

1) On February 14, 2020 (GMT+8), Huobi Global announced the official launch of HBTC.
2) On February 28, 2020 (GMT+8), the HBTC minting exceeded 700 BTC.

4. Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

White Paper: https://www.hbtc.finance/static/pdf/whitepaper-en.pdf
Official Website: www.hbtc.finance
Contract Address: 0x0316EB71485b0Ab14103307bf65a021042c6d380
HBTC Data Center: https://www.hbtc.finance/en-us/assets

5. Link any available audits of the project. Both procedural and smart contract focused audits.

The smart contract has been audited by Slow Mist.
Please check the audit report here https://www.hbtc.finance/static/pdf/audit-report-en.pdf

6. Link to any active communities relating to your project.

Find us on Medium: https://medium.com/@HBTC_Finance

7. How is the applying collateral type currently used?

As the BTC issued on Ethereum, HBTC can be used by users for more convenient transfer, lending, trading, oracle etc.
Also,HBTC already used in Fortube (https://for.tube/home) as collateral and loan asset. HBTC already used in Nest(https://nestprotocol.org) as the oracle.

8. Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?

HBTC is issued by Huobi Global Limited; Huobi Global Limited is a company incorporated in the Republic of Seychelles in accordance with the relevant laws of the Republic of Seychelles. The company operates the website https://www.huobi.sc

9. Where does exchange for the asset occur?

  1. Users can acquire HBTC by deposit BTC via Huobi Global Exchange (https://www.huobi.com/en-us/) and/or HBTC official website
    the HBTC withdraw process is as follows:
  • Buy, deposit or get BTC through trading and save it in the Exchange account on Huobi Global.
  • Select BTC - Withdraw - ERC20 in the Exchange account.
  • Enter the address and amount for withdrawal and click "Withdraw ". Then the process of BTC minting HBTC is completed.
  1. also could directly buy HBTC through our Partners’ platforms:

10. Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.

N/A

11. Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.

N/A

12. List any possible oracle data sources for the proposed Collateral type.

Nest Oracle provides direct quotation on the Ethereum network for HBTC/ETH, the quotation contract address:0x99bd363a144Fb61FEAe863b182F1f200667a1879
Note: HBTC (assets based on ERC20) does not use oracle itself, and the exchange ratio between HBTC and BTC is 1:1. You can directly use the existing MakerDAO BTC/USD oracle.

4 Likes

Hi @robert and welcome to the community,

ERC-20 editions of BTC looks to be highly fashionable these days.
I will give my first impression on HBTC. Some of this you might add something too and some is more for community discussion

Pros:
another BTC coin on the Ethereum blockchain. Technically identical to WBTC as far as I can tell.

Cons:

  • low market cap at USD6.5 million. We in the Maker community should possibly start discussing if small caps of this sort are worth the effort.

So the market cap has grown by 10 BTC since February? https://etherscan.io/token/0x0316eb71485b0ab14103307bf65a021042c6d380

  • no defi presence. Like none. As far as I can tell HBTC is not used outside of Huobi.

I feel there is a story here that is not being told. HBTC saw the first transactions about nine months ago and finished audits in December 2019. That is almost eight months ago and the market cap is still only USD6.5 million. Not exactly stellar growth to put it mildly - especially considering the growth of WBTC and renBTC just over the last two months.

You might think that so what - it is still early days of crosschain functionality. Well - that is assuming that the growth of crosschain tokens will just continue, and that might not be the case. Just go on the various discussion forums of other chains and search for defi related articles: they either don’t know about defi, they don’t care about defi or they positively consider it diaper filling. This makes me think the idea that 10% of BTC (to match the Ethereum level) will end up in defi is either without connection to reality or something that will take many years. Crosschain is possibly all the rage in smaller circles, but there is not a single BTC whale that has looked twice at it yet.

All in all this makes me slightly uneasy about adding more centralized BTC variants, especially with such a low usage.

2 Likes

I share concern about the relatively low usage of HBTC. My feedback is similar to what I had for HUSD:

Being able to trade HBTC for WBTC or renBTC on curve.fi would be very useful. Overall I’m supportive of HBTC; diversifying custodian risk is probably good.

I think getting HBTC into the collateral portfolio would be a very positive development despite its small market cap.

When WBTC was first added it also had a small Market Cap.

1 Like

I support HBTC because it is HUOBI and because I have used HBTC. Of course, they should also list trading pairs on the DEFI platform.

2 Likes

As we know, HBTC is in its infancy. Although its market cap is low now, it immense growth potential. The issuance mechanism of HBTC is competitive, the generation and redemption of HBTC can be done natively within Huobi Global Exchange, and users can use HBTC directly in Huobi Global. HBTC acts as a gateway that guides user who are unfamiliar with Defi into to the DeFi world. Users who want to generate HBTC, only need to pay less than 0.00005BTC (about $0.5) in fee, and redeem HBTC for free. If MakerDAO supports HBTC, it is predictable that a large number of users and assets will be funneled into the MakerDAO ecosystem, accelerating protocol growth.

2 Likes

As you mentioned, Huobi Global was ready for the issuance of HBTC in December 2019, hoping to bring prosperity to DeFi. The initial focus of HBTC was not on growth in terms of marketcap. It is precisely that Huobi has been looking for reliable and reputable Defi platforms, like MakerDAO, to synergy with each other and promote higher liquidity. For example, there was not much volume (only 1.125K)before WBTC was added to the MakerDAO collateral, ,and the data soared after joining. This could be a mutually beneficial collaboration. Due to the convenience of HBTC issuance, it is believed that HBTC will gradually enter a period of rapid growth and bring more BTC users to the MakerDAO ecosystem.

2 Likes

In less than a month supply went from 710 BTC 7/23/20 to 2510 BTC 8/20/20. That is fantastic. Support the green light poll

*edited poll duration

Actually the greenlight polls are 2 weeks long, so there are another 11 days to go. Please do vote though!

Hi guys, I made a prediction market on this in an effort to get more attention to the poll: https://omen.eth.link/#/0x8c4f70c417cc75dd79de1be53ca886bddc536440