This sounds like a great way(s) to mitigate the risk involved.
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I think I have a way to implement insurance without exposing us to any other protocols. We deploy a second pool with trading disabled called iBTC then we support minting two different versions, BTC++ and iBTC++ . BTC++ is just the straight uninsured pool with trading and higher risk. iBTC++ is 1% iBTC and 99% BTC++ . During normal times, redemption of iBTC++ only gives you back the assets from BTC++. During a black swan, an insurance redeemable flag is set, disabling new minting on iBTC++ but changing redemptions to include the BTC++ along with a proportional share of the iBTC pool.
The DAO could potentially participate in iBTC to give it a value boost at the beginning as @mickdegraaf suggested. Then we could redeem the DAO’s portion when iBTC exceeds something like 40% of the outstanding BTC++.
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Great thread about tBTC and renBTC.
Suggestion from the community call;
Love the toggle! can I suggest having a (~USD Value) and an option to manually enter the amount of BTC++ I would like to mint?
Mainnet, Uniswap market and Balancer market
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