Threshold (T) is a protocol built to help users to make money from Bitcoin (BTC) in decentralized finance (DeFi). To elaborate, the Threshold Network lets users stake and provide liquidity using Bitcoin.
For example, the Threshold Staker lets users create escrow T tokens that run nodes on the Threshold Network and earn rewards. Threshold had 2.94 billion T worth $145.020 million staked on 27 January 2023. Staker lets users stake on several apps including Threshold Access Control and tBTCv2.
End-to-End Encryption for Everything
Threshold Access Control supports end-to-end decentralized data sharing and communication. They claim Threshold Access Control offers end-to-end encryption for everything.
This includes nonfungible tokens, streaming video, decentralized autonomous organization (DAO) group chats, connected vehicles, and database-as-a-service (DBaaS) To explain, a DBaaS allows access to a database without physical hardware, configuration, or software installation.
The tBTC v2 is Thresholds’s decentralized bridge that brings BTC to the Ethereuem (ETH) network. To elaborate, existing Bitcoin-to-Ethereum bridges require users to give Bitcoin to an intermediary.
In contrast, the second generation of tBTC or tBTC v2 lets Bitcoin holders access Ethereum (ETH) without surrendering their BTC. tBTC v2 uses a select group of Threshold Network node operators to secure deposited Bitcoin with threshold cryptography. tBTC v2 keeps the network decentralized by rotating operating selection. Hence, nobody is in control.
Threshold Liquidity Pools
Treshold (T) allows BTC holders to become liquidity providers by letting them deposit assets into liquidity pools on Curve (CRV) and Balancer (BAL).
Threshold liquidity providers earn yield by providing liquidity for automated market makers (AMMs) and other DeFit protocols. Threshold’s Curve Liquidity Pool contained 912 ETH and 30.468 million T worth $2.955 million on 27 January 2023.
To elaborate, liquidity pools are the basis of DeFi. Liquidity is the cash decentralized exchanges, apps, and marketplaces use to process transactions. People provide liquidity and receive interest. Threshold’s Curve Liquidity Pool was providing a daily base Annual Percentage Yield (APY) of 15.85% and a weekly base APY of 17.32%
The Threshold Token (T)
Threshold Token holders can participate in Threshold decentralized autonomous organization (DAO) governance by voting. Threshold (T) holders can participate in staking and liquidity pools and operate Threshold Access Control nodes.
Mr. Market has some interest in the Threshold Token (T). CoinMarketCap named T the fifth-most trending cryptocurrency on 27 January 2023. Conversely, Threshold was CoinMarketCap’s 89th ranked cryptocurrency with a 4.972₵ Coin Price on 31 January 2023.
CoinMarketCap gave Threshold a $423.459 million Market Capitalization, a $499.110 million Fully Diluted Market Cap, and a 24-Hour Market Volume of $274.798 million on 31 January 2023.
There was also a $273.572 million Centralized Exchange (CEX) Volume and a $795,371 million Decentralized Exchange (DEX) Volume on the same day. They base those numbers on a Circulating Supply of 8.485 billion T, a 10 billion T Maximum Supply, and a 10.515 billion T Total Supply.
Interestingly, CoinGecko did not rank Threshold (T). Instead, it gave Threshold a 5.07₵ Coin Price and a $254.249 million 24-Hour Trading Volume on 1 February 2023. They base numbers on a 10.515 billion T Total Supply.
If you are seeking a DeFi token that could make money from Bitcoin (BTC). I think Threshold (T) is worth a look. I think Threshold could achieve some value because of Bitcoin’s enormous popularity.