$GMX launches a BTC-USD market backed by tBTC, the decentralised Bitcoin-backed token from Threshold Network.

$GMX is introducing tBTC as a collateral asset on Arbitrum, offering users a trust-minimised alternative to wrapped $BTC (wBTC). The decentralised token from @TheTNetwork that’s pegged to the price of Bitcoin will back a BTC-USD perpetual futures market on $GMX V2.

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$GMX aims to offer the best on-chain earning opportunities in crypto, and the most liquid on-chain trading markets for all top crypto assets. Values like permissionlessness, decentralisation, and transparency infuse that vision. The introduction of the tBTC token allows $GMX to further deepen its alignment with these core DeFi values.

Benefits of tBTC markets to $GMX users:

• Further decentralisation and trust minimisation
• Direct $BTC on and off-ramps to $GMX products via the tBTC SDK
• tBTC native minting on Arbitrum
• A higher return for $BTC liquidity providers due to long-term tBTC incentives

tBTC Incentives Program:

Threshold DAO has committed to an initial three-month incentive program to bootstrap tBTC collateral deposits on GMX:

• Month 1: $15k USD denominated in the $T token & 6,666 ARB
• Month 2: $15k USD denominated in $T token & 6,667 ARB
• Month 3 $15k USD denominated in $T token & 6,667 ARB

Once this launch program has concluded, Threshold DAO will review the campaign's success and assess a follow-up long-term incentives budget.

Market Parameters:

The new market is a BTC-USD [TBTC] market: a market to trade Bitcoin against USD, backed by a single-token pool containing only tBTC tokens. tBTC is the backing asset on both the long and short sides in the underlying liquidity pool.

This configuration is similar to $GMX’s existing single-asset BTC-USD [WBTC] market, based on wrapped BTC. Both markets are backed solely by Bitcoin, and have no stablecoin component in the liquidity pool. They, therefore, don’$t feature the rebalancing and impermanent loss that occurs in traditional liquidity pools.

Liquidity & Bridging:

tBTC can be natively minted on the @Arbitrum blockchain as of this week. Users can also bridge their Bitcoin to Arbitrum via Threshold Network’s portal: https://t.co/yRp8FILWSS. Various liquid spot trading markets for tBTC are available on Arbitrum as well.

Liquidity providers can now deposit tBTC to support trading on $GMX, and maintain full market exposure to Bitcoin while earning a significant return on their holdings.

Deposit tBTC now and earn on your Bitcoin: https://t.co/eY0w52l4tb

Early liquidity providers to the tBTC GM pool backing the new BTC-USD market will benefit from token incentives, to help bootstrap market liquidity quickly. See the abovementioned tBTC Incentives Program for details.