Yield Opportunities

Unlock iBTC’s Versatility in DeFi and CeDeFi

iBTC isn’t just a wrapped Bitcoin—it’s your gateway to a wide range of DeFi and CeDeFi applications. Designed for seamless integration, iBTC empowers users to leverage Bitcoin across lending, staking, trading, and managed financial products, all while maintaining security on Bitcoin Layer 1. Below, we explore the key use cases driving iBTC’s adoption in decentralized and centralized-decentralized finance ecosystems.

DeFi Use Cases

Lending and Borrowing

• Overview: Use iBTC as collateral to borrow assets or lend iBTC to earn interest on platforms like Euler, ZeroLend, and Aave.

• Technical Detail: iBTC integrates as an ERC20 token, compatible with lending protocols’ smart contracts. For example, Euler could wrap iBTC positions into ERC4626 tokens for additional yield stacking.

• Example: Deposit 1 iBTC on Aave, borrow USDC, or lend iBTC to earn variable rates based on utilization.

• Impact: Enables BTC holders to access liquidity without selling, with integrations planned for Morpho and Maple.

Staking and Restaking

• Overview: Stake iBTC on Symbiotic and Mellow to secure networks and earn rewards, or restake via siBTC for amplified benefits.

• Technical Detail: Symbiotic’s shared security protocol accepts iBTC as a staking token, delegating to Attestor Network operators. Mellow’s vault aggregates deposits, issuing siBTC tokens for restaking.

• Example: Stake 1 iBTC in a $50M Symbiotic vault, delegate to attestors, and earn rewards from Symbiotic, Mellow, and iBTC points.

• Impact: Supports iBTC’s TVL growth with institutional adoption.

Liquidity Provision on DEXs

• Overview: Provide iBTC liquidity on decentralized exchanges (DEXs) like Curve, Uniswap, and 1inch to earn trading fees.

• Example: Add 1 iBTC to a Curve pool, earning 0.3% fees per swap, boosted by iSats Points (5x multiplier).

• Impact: Enhances iBTC’s multi-chain liquidity, with XRPL as the only wrapped BTC there.

Futures and Perpetual Swaps

• Overview: Use iBTC for margin trading on perpetual futures platforms like dYdX and GMX, enabling leveraged BTC exposure.

• Technical Detail: iBTC serves as collateral in Perp DEX smart contracts, supporting long/short positions with up to 10x leverage.

• Example: Deposit 1 iBTC on dYdX, open a 5x leveraged BTC/USD perpetual position, and profit from price movements.

CeDeFi Use Cases

Managed Yield Products

• Overview: On institutional-focused chains like Canton, asset managers deploy iBTC in structured products, offering managed yield for institutional clients.

• Technical Detail: Canton’s privacy-enabled blockchain will facilitate IM/VM (initial/variation margin) flows with iBTC.

• Example: An asset manager locks 10 iBTC on Canton, offering clients structured products with 5%-20% yield, adjusted bi-hourly.

OTC Trading and Liquidity

• Overview: Merchants use iBTC for over-the-counter (OTC) trading, providing deep liquidity for institutional desks.

• Technical Detail: KYB-verified merchants mint iBTC, integrating with OTC desks (e.g., via Curve pools) to facilitate large trades with minimal slippage.

• Example: A merchant mints 50 iBTC, supplying liquidity to an OTC desk for institutional BTC-USDC swaps.

Cross-Chain Structured Finance

• Overview: iBTC enables Bitcoin-based structured finance on chains like StarkNet, supporting lending, borrowing, and derivatives.

• Technical Detail: StarkNet’s ZK-rollup technology ensures cost-efficient iBTC transactions, with chain incentives for liquidity pools.

• Example: Deploy 5 iBTC on StarkNet, use in lending pools, or trade structured products with regulated LPs.

Why iBTC Excels

iBTC’s use cases leverage its bridgeless design, ensuring security while offering versatility. Unlike competitors with bridge risks, iBTC scales safely across DeFi and CeDeFi, driving adoption toward its $750M TVL target (data room).