The long-awaited day finally came on October 19 when the first Bitcoin (BTC) exchange-traded fund (ETF) went live on the New York Stock Exchange, putting the cryptoasset in the limelight of major media. of communication and alternative media alike.
Despite the fact that the ETF in question will not hold actual Bitcoin and is instead a futures-based instrument, investors and experts across the ecosystem have largely hailed its launch as proof that Bitcoin has hit the ground running. Major League Baseball and will soon exceed the coveted price target of $ 100,000.
Many investors do not have access to or will choose not to interact with the newly released EFT, but holders can still use a variety of strategies to get a return on their BTC holdings.
Below are some strategies that BTC holders can use to get a return.
DeFi meets BTC on BadgerDAO
BadgerDAO is an open source protocol built on the Ethereum network that has the specific goal of creating products and the necessary infrastructure to simplify the integration of Bitcoin in decentralized finance (DeFi).
Currently, BadgerDAO has the most extensive list of combined BTC pools where investors can provide liquidity.
As seen in the image above of the BadgerDAO dashboard, there are different offers from simple staking of Wrapped BTC (wBTC), which can get a return ranging from 1.22% to 27.98%, depending on the terms of the block, to staking in More complex liquidity provider (LP) strategies such as the renBTC / wBTC / sBTC pool, which offers a yield ranging from 7.07% to 45.37%.
It is important to bear in mind that there are risks related to the wrapping of BTC and RenVM because a user must give up control of the original BTC to obtain wBTC or renBTC, violating the crypto code of “they are not your keys, they are not your cryptocurrencies”.
For LP tokens that pair BTC with other cryptocurrencies such as Ether (ETH), BADGER, or stablecoins such as Tether (USDT) and USD Coin (USDC), holders should also consider the possibility of suffering a temporary loss if the price of Bitcoin it increases by a significant amount compared to the other token it is paired with.
Trader Joe
Trader Joe is the largest decentralized trading platform by total blocked value (TVL) on the Avalanche network, according to data from Defi Llama, with assets worth $ 2.18 billion currently on the protocol.
Using wBTC on Avalanche Network requires another layer of wrapping produced by wBTC.e, which can then be traded on the network or used to provide liquidity.
At the time of writing this article, Trader Joe offers a return on three LP tokens, including a return of 26.223% for the wBTC.e / AVAX pair, 16% for the wBTC.e / USDC.e pair, and 11.9% for the wBTC.e / USDC.e pair. wBTC.e / USDT.e. All rewards are paid in the protocol’s native JOE token.
Raydium
Raydium is the highest ranked DeFi protocol on the Solana network, according to data from Defi Llama, and currently boasts a TVL of USD 1.77 billion.
Users who wish to use their BTC on Solana have the option to pair it with USDC, USDT, Serum (SRM), and a wrapped form of Solana known as mSOL.
The returns offered range from 5.16% to a maximum of 14.27%, and all rewards are paid in the platform’s native RAY token.
PancakeSwap
PancakeSwap is the number one protocol ranked by TVL on Binance Smart Chain (BSC) with data from Defi Llama showing that $ 5.39 billion in tokens is currently locked into the protocol.
To use Bitcoin in the BSC, it must first be wrapped to become BTCB, which can then transact on the network.
Currently, PancakeSwap offers a 5.44% yield for the BTCB / ETH pair, a 15.82% yield for the BTCB / BUSD pair (Binance’s stablecoin, Binance USD), and a 20.79% yield for the BTCB / BNB pair. All rewards are paid in the protocol’s native CAKE token.
Decentralized Bitcoin Futures
DYdX is a decentralized perpetual futures trading platform that made a splash in September when thousands of dollars of its native government token DYDX were airdropped to early users of the platform.
Similar to the ProShares Bitcoin Strategy ETF, transactions made on the dYdX protocol are not set in real Bitcoin, but rather in a USD stablecoin, so BTC stakers may not be overly interested in the protocol. if the only goal is to directly increase Bitcoin holdings.
However, unlike trading a future government-regulated product that is only available when traditional markets are open, dYdX offers the 24/7 decentralized trading environment that the crypto faithful have come to. to love.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Each investment and commercial movement involves a risk, you must do your own research when making a decision.
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