This proposal, if approved, will remove iBTC from the Omnipool - via the following actions:
- update the tradable status of iBTC so that only liquidity withdrawals can occur
- force the removal of the remaining iBTC LPs from Omnipool
- update the tradable status of iBTC so that no actions can take place (asset is frozen)
- remove iBTC from the Omnipool as a tradable asset
- place the following on-chain remark:
Request the Technical Committee to whitelist a follow-up referenda to transfer all Treasury iBTC to IGL multisig 13ewQXTnrTGnb6yXdDEqmNBkamrtWMXRRwdq28sopxbSPKjx for subsequent OTC for tBTC 1:1 - tBTC will be returned to the Treasury
It is not possible to determine ahead of time how much iBTC the Treasury will receive when withdrawing its' LP, as over the course of the next ~week significant price changes can occur. Therefore, once the position is withdrawn and iBTC no longer trading in Omnipool, a follow-up referenda will be whitelisted to transfer all iBTC to the IGL multisig 13ewQXTnrTGnb6yXdDEqmNBkamrtWMXRRwdq28sopxbSPKjx - this will allow flexibility on the timing and best means of exchanging the iBTC for tBTC.
Once the iBTC has been exchanged 1:1 for tBTC, IGL will transfer the tBTC back to the Hydration Treasury
The ambition is for the iBTC to be withdrawn against the ZPL vault, in order to reduce the system's reliance on a single vault provider. For context, Hydration has supported Interlay's iBTC and been both the largest holder and biggest market for iBTC almost since inception. It has maintained this support despite Interlay not having any ongoing development or plans for growth - unfortunately, over time iBTC vault capacity has dwindled to the point that ZPL secures ~86% of all iBTC supply. This level of centralisation, combined with very little iBTC trading volume has left no other option than for Hydration to exit their position entirely.