eBTC

eBTC is a synthetic bitcoin protocol by BadgerDAO with Lido, live on Ethereum since March 2023, where users deposit stETH as collateral to borrow eBTC, a soft-pegged bitcoin, at zero interest and no origination fee. Protocol revenue comes from a share of collateral staking yield rather than borrower interest; the liquidation threshold is a 110 percent collateral ratio, below which any market participant can repay the debt for discounted collateral, and a drop under 103 percent triggers debt redistribution, with pricing secured by a Chainlink primary oracle plus backup.

eBTC differs from custodial wrapped bitcoin in that collateral, issuance and redemption run entirely through contracts with no single issuer key. In June 2025 the BadgerDAO Treasury Council voted through proposal TCD 88 to deprecate eBTC: after just 3.7 million dollars of incentivized user collateral in over a year, it had no sustainable revenue, and official interfaces were withdrawn after June 30 while oracles and other vital infrastructure stayed on, with remaining positions exited through direct contract interaction.