DefiLlama <> Bitcoin Chains/Teams

[Define101]

Hello Hello Bitcoin Teams

As some of you know, we have been working hard over the last weeks/months to ensure we provide the most accurate and transparent information to our users. Our core values are honesty, openness, and transparency, and our end goal is to make sure our users have the most reliable information and understand the different risks involved with each type of BTC wrapped/derived assets.

As explained before to a few people in this group, there are currently multiple "types of BTC," each with its own risk, and everyone should be aware of that.

Ideally, we want to separate all these BTCs by what they actually represent. As of now, there are a few types of BTCs:

1. What is normally called a bridge: WBTC, Binance Bitcoin, Avalanche Bitcoin, etc. The methodology here is to track the collateral of the underlying asset instead of the supply of the underlying asset. You can check their code and see all the BTC wallets. These are classified as bridges and will continue to be classified as such.

2. Projects that actually restake Bitcoin on a real PoS chain. The methodology here is to track the collateral of the underlying asset instead of the supply of the underlying asset. This is the case where projects allow users to deposit tBTC or WBTC and then restake those two assets on Eigenlayer, Symbiotic, or other restaking platforms (on Ethereum). These are classified as Liquid Restaking and will most likely retain that category.

3. Projects that are theoretically backed by something that is backed by BTC. The methodology here is to track the collateral of the underlying asset instead of the supply of the underlying asset (in most cases, the collateral is not BTC, but something else theoretically backed by BTC). These are classified as bridges (as of now), but we intend to change this so that they can have their own category.

4. Projects that use Babylon. The methodology here is to track the BTC wallets of the respective project. These are classified as bridges (as of now), and we also plan on creating a category for this.

Some considerations:

Regarding the category field, it is extremely important to us because it allows our users to actually compare apples with apples. We think we all agree that, for example, comparing volume from a derivatives platform with a DEX is not fair to our users or to those two projects, as they are NOT the same (derivatives = leverage).

Regarding the Liquid Restaking category, our current rule for a project to have the Liquid Restaking category is that it's mandatory for 100% of the asset to be restaked. Due to the rules of Babylon, the odds of any project being able to restake 100% of the BTCs are very low. For that reason, we understand that most likely a new category for type 4 (Babylon) could be created, where this requirement could be lower or even non-existent.

Everything explained above is not set in stone yet. We would love to get feedback from all of you so that we can all participate in this topic. I hope you all understand where we are coming from, as some of you know, there is a lack of transparency and honesty when it comes to BTCs.