Threshold Network
About
Threshold Network is a decentralized infrastructure protocol that powers tBTC, the Bitcoin standard in finance. It enables Bitcoin liquidity to move seamlessly across chains through a trust-minimized, 1:1 tokenized Bitcoin bridge built on threshold cryptography. The protocol is designed for institutions, developers, and DeFi users who want to use Bitcoin in lending, staking, trading, and yield generation across multiple blockchain ecosystems.
Where Does Yield Come From?
Threshold Network lets Bitcoin holders put their BTC to work across different blockchains. It does this through tBTC, a token that always equals 1 Bitcoin. Here's how yield and value flow through the system.
T token staking cuts your costs. If you stake 100,000 T tokens, the network waives up to 0.001 tBTC in redemption fees over a 30-day rolling window. This makes it cheaper to move Bitcoin out of the bridge, which helps active users save money.
The tBTC bridge has two main fees. Converting (minting) regular BTC into tBTC is usually free. Converting back (redeeming tBTC for BTC) costs a 0.2% fee (20 basis points). That fee helps keep the bridge running and pays for decentralized operations.
Bitcoin holders can chase yield in DeFi. Once you hold tBTC, you can lend it out, trade it, or put it into yield strategies on several different blockchains — just like any other token in decentralized finance.
Security comes from independent operators. The network relies on a rotating group of node operators who keep things honest. They are given incentives to do this job well.
The T token has two jobs: governance and value. Holding T lets you vote on protocol decisions, and the token also captures some of the value from all this activity. The system is designed so that the more people use the bridge, the more aligned the governance community is with the protocol's health.
The key idea throughout: yields are transparent and backed by real Bitcoin usage. The system uses structured vaults and institutional-grade strategies, but the core source of returns is actual people using Bitcoin across chains.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
Defense by Thesis16-09-2025 - 25-09-2025 |
| The audit identified several input validation gaps and gas optimization opportunities, all of which appear to be addressed in the final report, though specific severity classifications could not be extracted from the partially accessible document. |
Defense by Thesis24-11-2025 - 26-11-2025 |
| The audit identified only minor gas optimization improvements for the rebate-staking integration, suggesting the governance-controlled wiring change was well-designed and introduced no critical security vulnerabilities. |
Defense by Thesis29-10-2025 - 05-11-2025 |
| This audit confirmed successful bytecode optimization for EIP-170 compliance with no critical security issues identified, focusing on contract size reduction while maintaining security properties for the Threshold Network upgrade. |
Defense by Thesis29-10-2025 - 31-10-2025 |
| The audit identified only gas optimization recommendations with no apparent critical or high-severity vulnerabilities, suggesting the NativeBTCDepositor contract appears secure within the reviewed scope, though full findings cannot be verified due to document access limitations. |
Certora10-09-2025 - 18-09-2025 |
| This focused audit of CCIP pool contract upgrades identified only low-risk and informational issues, indicating the migration to upgradeable proxies maintains security posture without introducing high-severity vulnerabilities. |
MixBytes08-09-2025 |
| The audit identified one high-severity issue affecting redemption functionality along with nine low-risk findings, indicating generally sound security design with specific implementation improvements needed. |
Zellic01-05-2025 |
| The audit listing confirms Zellic reviewed tBTC's Sui integration in May 2025, but the report itself could not be retrieved from the Notion page, preventing any assessment of findings or residual risks. |
Hashlock01-04-2025 |
| The audit report was not accessible for review due to JavaScript requirements on the hosting page, preventing assessment of tBTC's StarkNet integration security posture. |
Thesis Defense29-03-2024 - 11-04-2024 |
| The audit reveals moderate risks primarily around the off-chain Relayer Bot's security assumptions and potential griefing attacks, with several medium-severity issues acknowledged but not fully resolved before the verification date. |
Least Authority29-08-2023 |
| The audit found no security vulnerabilities, indicating the Solana smart contracts were well-designed and implemented with security considerations. All identified suggestions were resolved prior to the final report publication. |
Least Authority29-09-2022 |
| The audit revealed two resolved security vulnerabilities in the tBTC Bridge V2 implementation, with both critical issues addressed before deployment, and provided constructive suggestions for code quality and testing improvements. |
CertiK19-11-2021 |
| The audit found no critical or high-severity vulnerabilities, with only one minor calculation issue and two informational dependency warnings, indicating a generally secure implementation of the VendingMachine contract. |
ChainSecurity09-11-2021 |
| The audit identified no critical or high severity issues, with only two medium and eight low severity findings that were either resolved or accepted by the team, indicating a relatively secure codebase with proper remediation processes in place. |
Backers
Threshold Network is backed by several prominent venture capital firms and investors as displayed on its official website. The "Trusted by" section features investor logos including Y Combinator (accelerator), ParaFi Capital, 1kx, Andreessen Horowitz (a16z), Galaxy Digital, and Swissborg. These investors supported the protocol's development and growth. The network originated from the 2021 merger of Keep Network and NuCypher, which likely brought together their respective investor bases. No specific funding round amounts, dates, or valuation details are disclosed on the official website or documentation.
Legal
Status and notes
Threshold Network operates as a decentralized protocol with governance through Threshold DAO. Official website includes Privacy Policy (effective July 1, 2025) and Terms of Use (effective July 1, 2025) referencing "Threshold Network" as the operator, but no specific legal entity, incorporation details, or registration information is disclosed. Contact provided at [email protected]. Governance occurs through Threshold DAO forum with proposal processes.