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 cbBTC token, which is a different flavor of BTC on the Base blockchain.
Yield source
Your yield comes primarily 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. Your yield can fluctuate based on borrow volume.
Risk perspective
Risks include potential bad debt from untimely liquidations during sharp market downturns, though the protocol includes safeguards to minimize lender exposure before bad debt occurs.
Provider
ExtraFi
Chain
Base
Contract address
0x1cC24200E91e83c04f829329cF4AD8c3d345f5FD
Yield7.9%
30d APY
Base
7.5%
Reward
0.4%
.
Investment scenarios
The below scenario simulator is greatly simplified. It intends to illustrate the potential impact of asset price movement on your investment.