GMX, a leading decentralized perpetual exchange, has introduced a new BTC-USD market backed by tBTC, the decentralized Bitcoin-backed token from Threshold Network. This launch is a significant step for GMX to offer its users a trust-minimized alternative to the commonly used wrapped Bitcoin (wBTC).
GMX Unveils tBTC as a Collateral Asset on Arbitrum
The new BTC-USD perpetual futures market on GMX V2 is supported by tBTC, which is now available as a collateral asset on the Arbitrum blockchain. tBTC is pegged to Bitcoin and provides a decentralized, trustless alternative to wBTC. The market allows for Bitcoin trading without relying on centralized entities, aligning with GMX’s values of decentralization and trust minimization.
Moreover, tBTC can now be natively minted on Arbitrum, giving users a seamless on-ramp to GMX products through the tBTC Software Development Kit (SDK). This integration offers a direct Bitcoin on-and-off ramp for GMX users and gives liquidity providers a unique opportunity to earn higher returns through long-term tBTC incentives.
Key Benefits of tBTC for GMX Users
GMX’s introduction of the tBTC market offers several key advantages to its users. It provides a fully decentralized, Bitcoin-backed trading experience, eliminating the need for centralized solutions like wBTC. Users can easily move Bitcoin in and out of GMX via the Threshold Network’s decentralized infrastructure, enhancing the overall user experience. Additionally, tBTC can now be minted directly on Arbitrum, expanding user options for interacting with Bitcoin-backed products.
Threshold DAO has launched a three-month incentives program to boost tBTC deposits on GMX, offering $15,000 in $T tokens and 6,666 ARB tokens in the first month, followed by similar rewards in the second and third months. Afterwards, Threshold DAO will assess its success and consider extending the program.
In addition to minting tBTC on Arbitrum, users can bridge their Bitcoin to Arbitrum via Threshold Network’s portal. This opens the door to a range of liquid spot trading markets for tBTC on Arbitrum. With incentives in place and seamless minting and bridging options, the new tBTC market is set to provide liquidity providers and traders with enhanced opportunities in the decentralized finance space.
Source: https://blockchainreporter.net/gmx-launches-btc-usd-market-backed-by-decentralized-tbtc-token-on-arbitrum/