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 token, which is a DeFi-friendly version of BTC on the Ethereum blockchain.
Yield source
Your yield accrues from bridging fees for moving WBTC into and out of Ethereum. Each WBTC transfer via the provider (Across) 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
Investing in the BTC pool carries smart contract considerations related to bridges and the reliance on BitGo, a centralized entity, for holding the underlying Bitcoin.
Provider
Across
Chain
Ethereum
Contract address
0x59C1427c658E97a7d568541DaC780b2E5c8affb4
Yield4.8%
30d APY
Base
1.5%
Reward
3.3%
.
Investment scenarios
The below scenario simulator is greatly simplified. It intends to illustrate the potential impact of asset price movement on your investment.