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 is to the tBTC token, a DeFi-compatible version of BTC on Ethereum, issued by Threshold protocol.
Yield source
Your yield comes primarily from rewards and 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. Your yield can fluctuate based on borrow volume. NOTE: The protocol grants token incentives every week to all depositors, but if you sell your investment within a week you will forego any potential incentives. Consider holding your investment for at least 1 week.
Risk perspective
Risks include multiple smart contract risks, the potential depeg of tBTC, and potential bad debt due to untimely liquidations of collateral assets.
Provider
Sturdy V2
Chain
Ethereum
Contract address
0xAeD098db0e39bed6DDc2c07727B8FfC0BA470D9C
Yield7.8%
30d APY
Base
0.3%
Reward
7.5%
.
Investment scenarios
The below scenario simulator is greatly simplified. It intends to illustrate the potential impact of asset price movement on your investment.