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.
Assets
By investing in this opportunity, your exposure to BTC will be through the WBTC and tBTC tokens, which are different flavors of Bitcoin on the Ethereum blockchain.
Yield source
Your yield comes from swap fees that investors pay when trading between WBTC and tBTC 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 BTC derivative assets.
Provider
Aura
Chain
Ethereum
Contract address
0xb3c8cc0f433200c3a92664a5fea626ed077e9d39
Yield-1.4%
30d APY
Base
-0.7%
Reward
-0.6%
.
Investment scenarios
The below scenario simulator is greatly simplified. It intends to illustrate the potential impact of asset price movement on your investment.