This opportunity works well for investors who want long exposure to 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 LBTC token, a DeFi-compatible version of BTC on Ethereum, issued by Lombard protocol.
Yield source
Your yield comes from the interest rates paid by borrowers who leverage the assets you've supplied for trading. 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 two weeks to all depositors, but if you sell your investment within 2 weeks you will forego any potential incentives. Consider holding your investment for at least 2 weeks.
Risk perspective
Risks include potential uncollectible debt due to untimely liquidations of collateral assets and LBTC price diverging from BTC.
Provider
Morpho
Chain
Ethereum
Contract address
0xdC94785959B73F7A168452b3654E44fEc6A750e4
Yield5.9%
30d APY
Base
2.9%
Reward
3%
.
Investment scenarios
The below scenario simulator is greatly simplified. It intends to illustrate the potential impact of asset price movement on your investment.