- Title: List WBTC on Bonzo with Initial Risk Parameters
- Specific Category: Bonzo Lend
- Author(s): Bonzo Finance / Ipak Systems
- Submission Date: 2 June 2026
Summary
This memo proposes the listing of WBTC as a new collateral and borrowable asset on Bonzo Lend. The proposal of initial risk parameters is grounded in WBTC’s market profile and on-chain analysis of the SaucerSwap V2 USDC/WBTC and WHBAR/ WBTC pools. All parameters are scheduled for review after 3 months of operation.
Motivation
WBTC is a wrapped representation of canonical Bitcoin with deep external liquidity, mature market infrastructure, and a strong absolute-terms risk profile (Ipak Asset Grading composite 77.3, Good tier). Adding WBTC expands Bonzo’s collateral universe with a high-quality asset price-anchored to a deep external market.
Specification & Rationale:
LTV is recommended to be set to 70%, anchored on WBTC’s quality tier composite score of 77.3 in the Ipak grading framework. Two protocol-specific constraints keep it below what the asset’s own profile would otherwise support: Hedera-side on-chain liquidity is materially thinner than the global aggregates the grading framework calibrates against, and this is a first listing without observed liquidation history on the platform.
The 10pp LT–LTV spread covers approximately 1.16 CVaR-99 days of buffer (anchoring on the 8.62% daily 99% CVaR from the underlying quantitative analysis), providing borrowers meaningful warning room before liquidation fires.
LB 10% is set above the Aave V3 major-cap standard (5%) to ensure liquidator participation given the thinner on-chain liquidity profile on Hedera. RF 20% builds protocol cushion at a measured pace during initial deployment, appropriate for a major-cap wrapped asset.
Supply and borrow caps are sized independently against on-chain liquidation venue depth.
Supply cap is set at 2 WBTC. At LTV 70% and close factor 50%, the maximum single-event liquidation repays ~0.70 WBTC of debt and seizes ~0.77 WBTC of collateral at LB 10%. On-chain measurement on SaucerSwap V2 pool 0.0.10092996 (USDC/HTS-WBTC) shows a sale of this size produces approximately 5.0% slippage, comfortably below the 9.26% net budget at LB 10% (LB minus 0.74% fixed costs). The ~0.77 WBTC seized sits well inside the pool’s ~1.42 WBTC structural cliff, leaving approximately 46% headroom (~0.65 WBTC) for stress-regime depletion, anti-correlation effects in the pool’s LP geometry, and the conservative assumption of no arbitrage replenishment.
Borrow cap is set at 0.65 WBTC. WBTC borrowing demand on a new listing is expected to be modest since WBTC is more commonly held as collateral than borrowed for leverage. The cap keeps the IR curve active across the realistic demand range without committing significant balance-sheet risk.
Slope-2 is set at 300% to create a sharp above-kink deterrent appropriate for an asset with thin on-chain liquidity. Reserve factor is set at 20%, matching wETH; this builds protocol cushion at a measured pace during initial deployment and is consistent with the parity-with-wETH framing rather than the more aggressive 25% sometimes applied to brand-new HTS asset listings.
Review schedule. All parameters are scheduled for recalibration after 3 months of operation, against monitoring metrics specified in the underlying quantitative analysis (liquidation event distribution, bad debt accrual, pool price vs oracle divergence, LP composition stability, HTS-WBTC bridge utilisation, and borrow utilisation vs U_opt). If observed liquidation sizes are consistent with the model and no bad debt has accrued, supply and borrow caps may be raised in the next iteration. LTV should be revisited in coordination with wETH to preserve the wrapped-asset tier parity.
Impact & Implementation
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WBTC becomes available as new collateral and borrowable asset on Bonzo with the risk parameters recommended above (LTV 70%, LT 80%, LB 10%, RF 20%).
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The asset to be whitelisted is the LayerZero-bridged HTS token 0.0.10082597, not the legacy HashPort-bridged WBTC[hts] (0.0.1055483). Whitelisting must be keyed to the Hedera token ID rather than the ticker symbol: the two tokens are not fungible, and treating them as interchangeable collateral, even briefly, is the highest-severity operational error at the deployment layer.
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Maximum single liquidation at recommended cap and LTV seizes ~0.77 WBTC of collateral (repaying ~0.70 WBTC of debt), leaving approximately 46% headroom against the SaucerSwap USDC/WBTC pool’s structural cliff (~1.42 WBTC at the analysis price).
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Liquidations remain profitable under per-event conditions modeled (~5.0% slippage at the maximum single-liquidation size; ~4.3% margin against the 9.26% LB 10% net budget on the USDC route).
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LT 80% provides 10pp spread from LTV, supporting borrower position management while ensuring liquidations fire with execution buffer for a tail-day move.
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Reserve factor 20% matches Bonzo’s wETH market and builds protocol cushion at a measured pace during initial deployment.
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All parameters scheduled for recalibration after 3 months of operational data.
Changes implement immediately after approval. Bonzo’s risk monitoring infrastructure should be configured to track the specified metrics from listing date.
Specification
| Parameter | Current | Recommended |
|---|---|---|
| LTV | - | 70% |
| LT | - | 80% |
| LB | - | 10% |
| Supply Cap | - | 2 WBTC |
| Borrow Cap | - | 0.65 WBTC |
| Reserve Factor | - | 20% |
| U_opt | - | 45% |
| Base Rate (α) | - | 0% |
| Slope-1 (β) | - | 7% |
| Slope-2 (γ) | - | 300% |
| Close Factor | - | 50% |
Supporting Risk Analysis
Ipak Systems prepared two supporting reports for this proposal: a qualitative WBTC Asset Due Diligence report and a quantitative Parameter Calibration report. Together, they cover canonical WBTC risk, the Hedera LayerZero/Stargate deployment, HTS token structure, local liquidity, liquidation routes, and the rationale for the proposed initial parameters.