This opportunity works well for investors who want long exposure to Bitcoin (BTC). Keep in mind, your returns are impacted by the price of BTC and this pool's yield.
Risks include potential bad debt from untimely liquidations during sharp market downturns, though the ~17% buffer before reaching bad debt helps mitigate this risk. Accurate and timely oracle pricing for LP tokens remains critical to maintaining stability.
Your yield primarily comes from the interest rates paid by borrowers who leverage the assets you've supplied for trading or farming. The more your asset is borrowed, the higher the interest that accrues back to you. The yield can change depending on transaction volume and value.