This opportunity works well for investors who want exposure to BTC, ETH and USD, and want to keep a balanced exposure to these three assets while earning yield. This portfolio automatically maintains a 1/3 ETH, 1/3 BTC and 1/3 USD asset allocation.
Assets
By investing in this opportunity, your exposure to BTC, ETH and USD will be through the WBTC, ETH, and USDC tokens, respectively, which are different flavors of those assets on the Ethereum blockchain.
Yield Source
Your yield comes from swap fees that investors pay when trading between WBTC, ETH and USDC on Ethereum. Every swap in this pool incurs a fee. This fee is paid out to depositors for providing funds. On top of this, the provider also boosts your returns through additional marketing incentives. Your yield can fluctuate based on transaction volume and the value of incentive payouts.
Risk Perspective
Risks include multiple smart contract dependencies and exposure to two centralized assets, WBTC and USDC. They rely on BitGo and Circle for custody services.
Provider
Yearn V2
Chain
Ethereum
Contract address
0xaa379c2aa72529d5ec0da8a41e2f41ed7fe4b48c
Yield8.2%
30d APY
Base
8.2%
Reward
0%
.
Investment scenarios
The below scenario simulator is greatly simplified. It intends to illustrate the potential impact of asset price movement on your investment.