When can BTC (mBTC) be used as collateral to mint mAssets?

I think there are more people willing to use BTC as collateral instead of UST. I propose to enable mBTC as collateral to mint mAssets.

2 Likes

Will be possible soon when mBTC becomes whitelisted

1 Like

The collateral currently is just ust. I personally thought about the multicollateral possibility but, after a deeper analysis, I would oppose a proposal in that direction. I believe that mirror should not become too leveraged by design. If a user wants to leverage he is free to do it through defi. In ethereum you can borrow DAI against a lot of collaterals and convert to UST. In terra i can imagine that somethnig like that could come, or by our initiative (a team of active early starters) or from terralabs (I am not sure if Anchor could cover also these cases already: I have this impression … perhaps the more expert community members can shed some light on this last point).

Hi @blackbird, mind if you elaborate the reason behind?

Think the reasoning is simple - you can add mAssets to third party lending protocols, no need to build leverage features into mirror protocol internally

2 Likes

I think we can use any other mAssets to mint?

I have just read BTC not mBTC in the original post. Sorry for the confusion.
massets are backed by UST: the collateral of the protocol is directly or indirectly UST with no leverage possibility within the protocol (very good design).