Coinbase’s new cbBTC is live on FiRM.
View the market here
Some background:
In response to organizational changes around WBTC, Coinbase recently introduced cbBTC as an alternative. A massive chunk of Coinbase’s AUM is in BTC and with their stated desire to move Coinbase users to Base over the coming years, this represents an excellent opportunity for DeFi users on Base and other chains (Ethereum mainnet, in our case now) to have a second wrapped BTC option.
cbBTC is new. We’ve studied cbBTC and our Risk Working Group issued the following report here. While we endeavor to focus 100% on fully-decentralized assets over the long-term, we believe WBTC and cbBTC are important to our current growth strategies and are comfortable with whatever centralization risks are posed by either collateral.
As with all FiRM markets, our security story is among the best in DeFi lending. FiRM uses isolated markets to prevent cross-collateral issues, integrates Chainlink for accurate price feeds, and features a Pessimistic Price Oracle which considers the lowest cbBTC price over the last 48 hours before initiating a borrow, adding an extra layer of protection against price volatility.
The composability story for cbBTC on FiRM is awesome. Users can leverage their cbBTC without a maximum loan maturity date while supporting an 80% Loan-to-Value (LTV) ratio. Additionally, FiRM offers the Accelerated Leverage Engine, allowing users to loop their cbBTC up to 5x. We won’t do the math here but if you are long BTC and want high-certainty in your looping, FiRM is an excellent choice
Why Choose cbBTC on FiRM?: Beyond the fixed rates, cbBTC on FiRM combines all the intrinsic benefits of Bitcoin with DeFi's composability. Users get to engage with DeFi's high-yield opportunities while keeping their Bitcoin's fundamental advantages intact.
Important Considerations: While this integration opens up exciting possibilities, FiRM emphasizes the importance of doing your own research (DYOR). Borrowing, especially in the volatile crypto markets, carries risks. Users are encouraged to join FiRM's Discord for community support and insights, but all actions should be taken with full awareness of the risks involved.
