tBTC
TBTC
Evaluation Score
Overall rating on a scale of 0-10
Crypto Token Health Score Explained
Our AI-powered health score evaluates on-chain metrics, community support, tokenomics, and more. This helps DeFi investors understand risk, compare tokens, and make informed decisions. Learn how to analyze DeFi tokens' risk and use these insights for DeFi portfolio risk management.
AI Analysis
Comprehensive evaluation of the token
Overview
tBTC provides a 1:1, permissionless BTC representation on Ethereum, secured by threshold ECDSA signers and audited contracts with no fund losses. Tokenomics are robust—supply mirrors BTC deposits with burn-on-redemption and no inflationary emission.
Strengths
- Strong security posture: multiple top-tier audits, active bug bounties, no major exploits
- Disciplined development: steady velocity, CI/test pass rate of 98%, transparent road-map execution
- Trustless design: open mint/redemption, no centralized custodian
Weaknesses
- Moderate adoption: <2% wrapped BTC market share leads to lower liquidity and higher slippage
- Governance centralization: off-chain multi-sig control; on-chain DAO pending
- Bus-factor risk: top two contributors account for ~62% of code changes
Overall, tBTC scores 7/10, carries Medium risk, and is best suited for speculative positions by investors prioritizing decentralized BTC DeFi exposure.
Detailed Analysis by Category
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About tBTC (TBTC)
tBTC (TBTC)
Token Name: tBTC
Symbol: TBTC
Overview
tBTC (TBTC) is a decentralized, trustless representation of Bitcoin on the Ethereum blockchain. Backed 1:1 by Bitcoin deposits held in secure smart contracts, TBTC enables BTC holders to participate in Ethereum-based DeFi protocols without centralized custodians.
Key Features
-
1:1 Bitcoin Peg
Each TBTC token is fully collateralized by an on-chain Bitcoin deposit, ensuring price parity. -
Trustless Custody
Smart contracts govern minting and redemption, removing single points of failure and counterparty risk. -
ERC-20 Standard
TBTC integrates seamlessly with Ethereum wallets, exchanges, and DeFi applications. -
Permissionless Minting & Redemption
Anyone can mint TBTC by depositing BTC or redeem BTC by burning TBTC, following the on-chain protocol.
Use Cases
-
DeFi Lending & Borrowing
Supply TBTC as collateral to access liquidity or earn yield in decentralized lending markets. -
Decentralized Exchanges (DEXs)
Trade TBTC against other assets on DEXs without wrapping or centralized intermediaries. -
Yield Farming & Staking
Leverage TBTC in liquidity pools, staking programs, and other yield-generating protocols.
How It Works
- Deposit BTC
A user locks BTC in a multi-signature, smart contract-controlled wallet. - Mint TBTC
The protocol issues an equivalent amount of TBTC to the user’s Ethereum address. - Redeem BTC
TBTC holders burn tokens to unlock the corresponding BTC, following the protocol’s automated redemption process.
Technical & Security
- Smart Contract Audits: Regularly audited by leading security firms.
- Open Source: Protocol code is publicly available on GitHub for transparency.
- Cross-Chain Bridges: Compatible with EVM-based networks beyond Ethereum.
For more information, visit the official tBTC documentation and GitHub repository.
Similar Rated Tokens
More for DeFi Investors
- Yield Farming Analysis: Discover the best tools and strategies for maximizing your returns from yield farming in DeFi.
- AI vs Fundamentals: See how Token Vitals combines AI crypto price prediction with fundamental analysis for a balanced investment perspective.
- Risk Scores Explained: Learn how our crypto risk scores differ from traditional credit scores and what that means for your portfolio.
- On-Chain Metrics: Understand which on-chain metrics matter most when investing in tokens and how to use them effectively.
- US Investor Analytics: Access crypto analytics designed for US investors, including features to help with tax tracking and compliance.
- Finding Value: Explore our data-driven lists to uncover top undervalued DeFi tokens for 2025 and beyond.