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 eBTC and tBTC tokens, which are different flavors of Bitcoin, on the Ethereum blockchain.
Yield source
Your yield comes from swap fees that users pay when trading between eBTC and tBTC on Ethereum. Every swap in this pool incurs a fee, which is paid out to depositors. 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 the potential for either eBTC or tBTC to experience liquidity issues or de-peg from BTC, which could lead to losses. Both assets rely on various mechanisms to maintain their value.
Provider
Curve
Chain
Ethereum
Contract address
0x48727018d010dc2e414c5a14d588385ae112869e
Yield3.6%
30d APY
Base
0.1%
Reward
3.5%
.
Investment scenarios
The below scenario simulator is greatly simplified. It intends to illustrate the potential impact of asset price movement on your investment.