Altcoin Roundup: Holding Bitcoin? Here’s how to put it to work in DeFi
The long-awaited 24-hour interval finally came on Oct. 19 as the commencement Bitcoin (BTC) exchange-traded fund (ETF) went alive on the New York Stock Commutation, thrusting the crypto nugget into the limelight across mainstream news outlets and alternative media alike.
Despite the fact that the ETF in question will hold no actual Bitcoin and is instead a futures-based instrument, investors and pundits beyond the ecosystem have largely hailed its launch as proof that Bitcoin has hit the large leagues and volition soon surpass the coveted $100,000 price target.
Many investors either don't take access or will choose not to collaborate with the newly launched EFT, just holders can however use a variety of strategies to earn a yield on their BTC holdings.
Here's a look at some strategies BTC holders tin can utilise to earn a yield.
DeFi meets BTC in BadgerDAO
BadgerDAO is an open-source protocol built on the Ethereum network that has the specific goal of edifice products and the required infrastructure needed to simplify the integration of Bitcoin into decentralized finance (DeFi).
Currently, BadgerDAO has the near all-encompassing list of BTC paired pools where investors can provide liquidity.
As seen in the image above from the BadgerDAO dashboard, there are unlike offerings from the uncomplicated staking of Wrapped BTC (wBTC), which can earn a yield ranging from 1.22% to 27.98% depending on the terms of the lockup, to the staking in more complex liquidity provider (LP) strategies like the renBTC/wBTC/sBTC pool, which offers a yield ranging from 7.07% to 45.37%.
It is of import to annotation that there are risks involved with wrapping BTC and RenVM because a user must relinquish command of the original BTC in society to obtain either wBTC or renBTC, violating the crypto code of "not your keys, not your crypto."
For LP tokens that pair BTC with other cryptocurrencies such as Ether (ETH), BADGER or stablecoins like Tether (USDT) and USD Coin (USDC), holders must also consider the possibility of suffering an impermanent loss if the price of Bitcoin increases by a significant corporeality compared to the other token it is paired with.
Trader Joe
Trader Joe is the largest decentralized trading platform by total value locked (TVL) on the Avalanche network, according to data from Defi Llama, with $2.eighteen billion worth of assets currently on the protocol.
Using wBTC on the Avalanche Network requires some other layer of wrapping that produces wBTC.eastward, which tin and so exist traded on the network or used to provide liquidity.
At the time of writing, Trader Joe is offering a yield on 3 LP tokens, including a return of 26.223% for the wBTC.eastward/AVAX pair, xvi% for the wBTC.e/USDC.east pair, and eleven.9% for the wBTC.e/USDT.e pair. All rewards are paid out in the protocol's native JOE token.
Raydium
Raydium is the top-ranked DeFi protocol on the Solana network, according to data from Defi Llama, and currently boasts a TVL of $1.77 billion.
Users who wish to employ their BTC on Solana have the option of pairing it with USDC, USDT, Serum (SRM) and a wrapped form of Solana known as mSOL.
The yields offered range from 5.16% to a high of 14.27%, with all rewards paid out in the platform's native RAY token.
PancakeSwap
PancakeSwap is the No. ane ranked protocol by TVL on the Binance Smart Concatenation (BSC) with data from Defi Llama showing that $5.39 billion worth of tokens is currently locked on the protocol.
In order to employ Bitcoin on the BSC, information technology must get-go be wrapped to become BTCB, which tin can then transact on the network.
At present, PancakeSwap is offering a five.44% return for the BTCB/ETH pair, a fifteen.82% render for the BTCB/BUSD pair (Binance's stablecoin, Binance USD) and 20.79% for the BTCB/BNB pair. All rewards are paid out in the protocol's native CAKE token.
Related: Valkyrie Bitcoin futures-linked ETF launches on Nasdaq, with share prices dropping 3% in first hour
Decentralized Bitcoin futures
DYdX is a decentralized perpetual futures trading platform that made waves back in September when it airdropped thousands of dollars worth of its native DYDX governance token to early adopters of the platform.
Like to the ProShares Bitcoin Strategy ETF, trades fabricated on the dYdX protocol do not settle in actual Bitcoin but instead in a USD stablecoin, so BTC stakers may not be too interested in the protocol if straight increasing Bitcoin holdings is the simply goal.
However, as opposed to trading a regime-regulated futures product that is only bachelor when the traditional markets are open up, dYdX offers the decentralized, 24/7 trading surround that the crypto true-blue have grown to honey.
Desire more information most trading and investing in crypto markets?
- Bitcoin futures ETF debuts with highest-always offset day 'natural' volume of $1B
- ProShares Bitcoin-linked ETF launches on NYSE every bit BTC price rises above $63K
- Bitcoin-related altcoins surge as BTC ETF rumors spread across the sector
- Bitcoin briefly flippens Swiss franc subsequently rally to new ATH
- Bitcoin futures ETF hits $1B AUM in a record-breaking ii days
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves run a risk, yous should behave your ain research when making a decision.
Source: https://cointelegraph.com/news/altcoin-roundup-holding-bitcoin-here-s-how-to-put-it-to-work-in-defi
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