Altcoin Roundup: Holding Bitcoin? Here’s how you can put it to use in DeFi

BTC is at an all-time high, making it easier for holders to take advantage of the lucrative yield opportunities DeFi offers investors who are willing and able to stake their tokens.
On Oct. 19, the first Bitcoin (BTC), exchange-traded fund (ETF), went live on New York Stock Exchange. This brought the crypto asset to the forefront of mainstream media and alternative media. Although the ETF will not hold actual Bitcoin, it is a futures-based instrument. However, many investors and pundits in the ecosystem have praised its launch. Here are some strategies BTC holders can use in order to get a yield. BadgerDAO meets DeFi in BadgerDAOBadgerDAO, an open-source protocol built upon the Ethereum network, has the specific goal to build products and the infrastructure necessary to simplify the integration Bitcoin into decentralized finance (DeFi). BadgerDAO currently has the largest list of BTC-paired pools where investors are able to provide liquidity. Source: BadgerDAOA As you can see in the BadgerDAO dashboard image, there are many options. There is the simple staking Wrapped BTC (wBTC) which can earn a yield of 1.22% to 27.98% depending upon the terms of the lockup. There is also the option to staking in more complicated liquidity provider (LP), strategies such as the renBTC/wBTC/sBTC pool which can yield a yield of 7.07% to 45.37%. Wrapping BTC and RenVM has its risks. A user must give up control of the original BTC to receive either wBTC (or renBTC), violating the crypto code “not your keys not your crypto.” Holders of LP tokens that combine BTC with other cryptocurrencies like Ether (ETH), BADGER, or stablecoins such as USD Coin (USDC) must also consider the possibility that they could suffer an impermanent loss if Bitcoin’s price rises significantly compared to the token it is paired to. Trader JoeTrader Joe has $2.18 billion in assets and is the largest decentralized trading platform on the Avalanche network by total value locked. Trader Joe hosts Bitcoin-related pools. Source: Trader JoeWinning wBTC over the Avalanche Network requires another layer to produce wBTC.e. This can then be traded on or used for liquidity. At the time of writing, the yield on three LP tokens offered by Trader Joe includes a return of 26.223% in the wBTC.e/AVAX pairs, 16% in the wBTC.e/USDC.e pairs, and 11.9% in the wBTC.e/USDT.e pairs. All rewards are paid in the native JOE token of the protocol. According to data from DefiLama, RaydiumRaydium is currently the top-ranked DeFi protocol in the Solana network. It has a TVL value of $1.77 trillion. If you wish to use your BTC on Solana, you have the option to pair it with USDC or USDT, Serum(SRM), and a wrap version of Solana known mSOL. Source: RaydiumThe yields ranged from 5.16% up to a high 14.27%. All rewards are paid in the native RAY token. PancakeSwapPancakeSwap is the No. TVL ranked PancakeSwap as the No. 1 protocol on the Binance Smart Chain. Data from Defi Lama shows that $5.39 Billion worth of tokens are currently locked on the protocol. To use Bitcoin on the BSC you must wrap it to become BTCB. The token can then transact on this network. PancakeSwap has Bitcoin-related pools. Source: PancakeSwapCurrently, PancakeSwap offers a 5.44% return on the BTCB/ETH pair and a 15.82% return on the BTCB/BUSD pairs (Binance’s stablecoin Binance USD). The 20.79% return for BTCB/BNB pairs is 20.79%. All rewards are paid in the native CAKE token of the protocol. Related: Valkyrie Bitcoin futures-linked ETF launches at Nasdaq with share prices dropping 3% within the first hour. Decentralized Bitcoin futuresDYdX, a decentralized perpetual futures trading platform, made waves in September when it distributed thousands of dollars worth its native DYDX governance to early adopters. The dYdX protocol is similar to the ProShares Bitcoin Strategy ETF. Trades are not settled in Bitcoin but in a USD stablecoin. This means that BTC investors may not be interested in the protocol if they only want to increase their Bitcoin holdings. However, unlike trading a government-regulated futures product, which is only available when traditional markets are open for trading, dYdX offers a decentralized, 24/7 trading platform that allows you to trade in Bitcoin. Bitcoin futures ETF launches on NYSE with highest-ever first-day ‘natural’ volume of $1B. Bitcoin-related altcoins surge after rumors about an ETF. Bitcoin futures ETF reaches $1B in record-breaking two-days. You should do your own research before making any investment or trading decision.

Relevant news

Leave a Reply