iBTC Network Documentation
  • Overview
  • Protocol
    • What is iBTC?
    • How iBTC Works
    • Attestor Network
    • Merchant Network
  • Security
    • Core Security Features
    • Proof of Reserves
    • Audit Reports
  • Yield & Rewards
    • Yield Opportunities
    • iBTC Rewards Program
  • Usage
    • Getting iBTC
    • Redeeming iBTC
  • Ecosystem
    • Supported Chains
    • Comparisons
    • Contract Addresses
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FAQs

Your iBTC Questions, Answered

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Last updated 1 month ago

New to iBTC or looking for technical clarity? Our FAQs cover everything from general concepts to regulatory and operational details, ensuring you have the answers to thrive in BTCFi. Let’s dive into the most common questions.

General

What is iBTC?

iBTC is a secure, decentralized wrapped Bitcoin solution for institutions and individuals. It enables trust-minimized DeFi access across multiple chains without centralized custodians or bridges. Using PSBTs (Partially Signed Bitcoin Transactions) and Chainlink Proof of Reserve (PoR), iBTC ensures transparency and 1:1 BTC backing.

How does iBTC work?

  • Institutions & Merchants: Self-wrap BTC into iBTC via multisig vaults, minting on chains like Ethereum or XRPL.

  • Individuals: Swap BTC or stablecoins for iBTC on DEXs (e.g., Curve, Uniswap).

  • Process: Lock BTC, attestors verify, mint iBTC, redeem via burn.

Why use iBTC over other wrapped Bitcoin tokens

  • Trust-Minimized: No centralized custodians, unlike wBTC’s BitGo reliance.

  • Transparency: On-chain PoR verification, not third-party audits.

  • Multi-Chain: Ethereum, Arbitrum, XRPL—the only wrapped BTC on XRPL.

How can I earn yield with iBTC?

iBTC unlocks DeFi strategies like staking (Symbiotic), lending (Aave), and liquidity provision (Curve). Yields are user-driven, not token-inflated, ensuring sustainability. Contact for institutional yield strategies.

Regulatory & Compliance

What are the regulatory requirements for using iBTC?

iBTC is a decentralized protocol and doesn’t hold user BTC. Merchants and institutions must comply with their jurisdiction’s regulations (e.g., KYB for merchants). iBTC’s trust-minimized model aligns with compliance needs.

Does becoming an iBTC merchant require KYB/KYC?

Yes, merchants undergo Know Your Business (KYB) checks via Fractl to ensure network integrity and compliance. Retail users face no KYC for swaps.

Is iBTC considered a security?

No, iBTC is a commodity-backed asset, as BTC is recognized as a commodity by regulatory bodies like the CFTC. It functions as a utility token, not a security.

How does iBTC address financial sector compliance challenges?

iBTC’s trust-minimized custody lets institutions retain BTC control. Tools like Chainlink PoR and KYB onboarding ensure transparency and regulatory adherence.

Operational & Technical

How does iBTC maintain its 1:1 peg with BTC?

iBTC is backed by BTC in 2-of-2 multisig vaults on Layer 1, with Chainlink PoR verifying reserves in real-time. Attestors ensure no over-minting.

What are the smart contract risks associated with iBTC?

iBTC minimizes risks by using PSBTs for minting, avoiding Bitcoin-side smart contracts. Ethereum contracts (e.g., AttestorManager) are audited regularly, with health monitoring to catch anomalies.

How does iBTC handle onboarding for large Bitcoin holders (whales)?

  • Self-Mint: Mint via merchants.

  • Merchant Swap: Use a KYB-verified merchant to swap into iBTC.

Can large institutions like BlackRock adopt iBTC?

Yes, institutions can integrate iBTC and establish private attestor networks for added security. iBTC’s can support high daily volume and privacy on chains like Canton.

Support: Contact for tailored onboarding.

sales@dlc.link
sales@dlc.link