This proposal, if approved, will stop the yield farms for WBTC/ iBTC 2-Pool for both vDOT & HDX rewards.

This is being proposed as a result of:

• ongoing uncertainty around WBTC since the move of custody to BitGo: https://x.com/mrsthreshold/status/1860771665673936980?s=46&t=-jk8J4n-gl_nXjt4EmHUeQ

• ongoing imbalance between WBTC and iBTC on Hydration [61.2% WBTC to 38.7% iBTC at time of post]

• ongoing inability to mint new iBTC on Interlay to meet demand [0 capacity at time of post]

• disproportionately high amount of iBTC supply on Hydration [27.93 on Hydration out of 35.72 total issuance]

By removing these incentives, it is expected that the 2-pool will rebalance itself, and Interlay iBTC will have the opportunity to once more arrive at market parity.

Hydration DAO should in the mean time consider alternative BTC derivatives such as cbBTC & tBTC.