Looking at the types of users interacting with BTC.b

User types are classified based on 3 interactions:

1. Bridging (Bridgoor)
2. Providing BTC.b LP on PTP (Platypus) and
3. Providing BTC.b in AVAX-BTC.b LP on TraderJOE (TraderJOE)

BTC.b on Platypus

Platypus is Avalanche's native stableswap protocol with low fees and minimal slippage.It is similar to Curve on Ethereum in terms of the low fee stableswap model, with an interesting twist by allowing single sided liquidity provision.

We will be taking a look at the BTC.b-WBTC.e stableswap pool on Platypus:

1. BTC.b Pool Size (in BTC.b)
2. BTC.b Daily Deposits & Withdrawal (in BTC.b)
3. BTC.b Swap Volume (in BTC.b)
4. BTC.b:WBTC.e Coverage Ratios

Key Information

Platypus Finance Website

Platypus LP-BTC.b Contract Address: 0x209a0399A2905900C0d1a9a382fe23e37024dC84Explorer Link

Ultimate BTC.b Bridging Dashboard

Background

Native BTC.b recently launch on the Avalanche Blockchain on 22nd Jun 2022! (insert red mountain emoji here) The native BTC.b token was launched together with the BTC.b native bridge and the AVAX's own native wallet! Previously, users on AVAX have been using WBTC.e (wrapped BTC) on the chain but that may expose users to additional smart contact risk as compared to holding the native token.To bridge, users would need to use the CoreApp to bridge BTC from the bitcoin chain to Avalanche

Key Information

BTC.b Contract Address: 0x152b9d0FdC40C096757F570A51E494bd4b943E50 Explorer Link

Example BTC.b bridging transaction: 0x949f4ba242ab95427a6f071cf84141dadb55c0272ec4e6e448596daa93e81f08

Native Bridging on CoreApp : Medium Article

CoreApp Launch: Twitter Thread

BTC.b on TraderJOE

TraderJOE is Avalanche's top DEX with the most liquidity and swap volume.Other than your usual LP farming, TraderJOE also offers lending services through BankerJOE, launchpad through RocketJOE, veJOE mechanism for liquidity bribing and the most recent JOEPEGs NFT marketplace!

We will be taking a look at the statistics of AVAX-BTC.b liquidity pool on TraderJOE:

1. AVAX-BTC.b Pool Size (in BTC.b)
2. BTC.b Daily Deposits & Withdrawal (in BTC.b)
3. BTC.b Swap Volume (in BTC.b)

Key Information

TraderJOE Website

AVAX-BTC.b LP Token Address: 0x2fD81391E30805Cc7F2Ec827013ce86dc591B806Explorer Link

Looking at the amount of BTC.b deployed in TraderJOE's LP, the top 3 address contributed a significant portion of the liquidity (up to 47%!) :

0xf7626459234e9249808a06aa08dc6b67c8e0a2fc, 0x38b019db008fe50ffa33ce9c3aaf1c665835740b, 0xf8d266188f62bdb55d73a5980a19a8a72a8251f2

Ideally, it would be best if this is more evenly distributed to ensure that there isn't a significant impact on the pool's liquidity when any user remove their LPs. In this case, 2/3 of the above addresses have active transactions over the past year in providing liquidity on TraderJOE/Pangolin so the likelihood might be low.

Methodology

Firstly, we will look into the overall bridging stats of the BTC.b bridge:

1. Transactions, Unique Address, Average/Median/Total BTC.b bridged
2. BTC.b bridged by day
3. BTC.b bridged by User Address

Next, we will take a look at what users do with the bridged BTC.b, namely on Playtpus and TraderJOE given that they contributes to a significant portion of all BTC.b on AVAX.

Lastly, we will take a deep dive into Platypus and TraderJOE protocols to understand their respective user's transactions:

• Platypus: Pool Size, Deposits & Withdrawals, Swaps, Coverage Ratio
• TraderJOE: Pool Size, Deposits & Withdrawals and Swaps

Coverage Ratio represents the default risk of a pool and is calculated by Asset/Liability. A higher coverage ratio indicates a lower default risk.

More on Coverage Ratio can be found in Platypus Docs: Link to Docs

BTC.b Bridging Statistics:

Note that there's a bridging fee of around 1.3% which is sent to 0x621Fa9c13Aea2796209498f1327a9F1cA7eaBD9E

Note that the above graph assumes 1 BTC.b = 1 WBTC.e

Key Findings

• BTC.b bridging is on an upwards trend since its launch on 22nd Jun, a total of 622 BTC.b (~$13M) has been bridged by 25th Jun.
• Most users are either solely bridgoors (35%) or LP farmers on TraderJOE (43%). This is interesting as there's more BTC.b locked on Platypus than TraderJOE but there are more users depositing into TraderJOE than Platypus. This likely means that Platypus has lesser addresses which are providing significantly higher amounts of BTC.b
• The coverage ratio for BTC.b on Platypus is lower at 68.5% but there may not be a cause for concern given that it takes time for the pool to stabilize as more users bridge into AVAX. In addition, smaller users tend to purchase BTC.b on chain as opposed to bridging through bitcoin chain due to the high gas fees. This coupled with large swaps of close to 1000 WBTC.e worth of trade volume over the past 4 days, this would likely not be an issue.
• The swap volumes on TraderJOE seems to mostly be from BTC.b to AVAX as opposed to the other way round. This seems to suggest that most folks more people swapping from BTC.b to AVAX on TJ to either provide LP on TraderJOE or swapping for AVAX after bridging BTC.b. In addition, 90% of the swap volume seems to be occurring on Platypus.

Analysis Details

• Date of Analysis: 25th Jun 2022
• Chart Refresh: 3 hours
• Twitter: @cloud_r3n

Note: that this value may be slightly different from what is stated on snowtrace.io. This is likely because of snowtrace only reflecting the current assets and not liability whereas this analysis looks at BTC.b deposit only.