Collateralize iBTC, leverage CurveLend, and stake in DeFi Money for double-digit yield. Maximize your Bitcoin yield while managing risks effectively. (Subtitle)
Author: Mayank Sachdev
December 6, 2024
Welcome to the next step in your iBTC journey! With your iBTC in hand, it’s time to explore how to harness its potential within the DeFi ecosystem. This guide will walk you through the process of utilizing CurveLend and DeFi Money to earn double-digit yield on your Bitcoin, optimizing your returns while staying secure.
Why Use This Strategy with iBTC?
This step-by-step strategy offers:
- Collateralizing iBTC for Stablecoin Loans: Access crvUSD while maintaining exposure to Bitcoin.
- DeFi Yields: Stake $Money a stablecoin on DeFi Money for yields exceeding 30%.
- Double-Digit Returns: Combine crvUSD lending and $Money staking to achieve consistent double-digit APYs.
- Earning iBTC & Defi.Money Points: Earn additional rewards while participating in DeFi protocols.
As of December 2024, CurveLend offers a Borrow APY of 13.2%, and DeFi Money staking provides APYs of 30-35%.
Step-by-Step Guide to Earning Double-Digit Yield with iBTC
Step 1: Acquire iBTC
- Navigate to Garden Finance or Curve Finance.
- Swap your Bitcoin for iBTC to start participating in DeFi opportunities.
Step 2: Collateralize iBTC on CurveLend
- Access CurveLend via the Curve Finance dashboard.
- Deposit iBTC as collateral to mint crvUSD, a stablecoin pegged to USD.
Step 3: Borrow Against iBTC
- Decide on the amount of crvUSD to borrow, ensuring a safe collateral ratio.
- Approve and execute the borrowing transaction.
Step 4: Bridge crvUSD to Optimism
- Use a trusted cross-chain bridge to transfer your crvUSD from Arbitrum to Optimism.
Step 5: Swap crvUSD for $MONEY
- On Optimism, access DeFi Money and exchange crvUSD for $MONEY tokens.
Step 6: Stake $MONEY in DeFi Money
- Stake your $MONEY tokens in the DeFi Money staking pool.
- Monitor dynamic APYs, which typically range from 30-35%.
Watch the Step-by-Step Video
Want a visual guide? Check out our step-by-step video tutorial that walks you through the entire process—from acquiring iBTC to staking on DeFi Money.
Watch the video here: https://x.com/ibtcnetwork/status/1864959476232536540
Important Considerations
- Risk Management: Ensure your collateralization ratio remains healthy to avoid liquidation.
- Interest Rates: Factor in borrowing costs when calculating your overall yield.
- Market Volatility: Bitcoin and DeFi assets can be volatile; stay informed and adapt accordingly.
Conclusion
This strategy combines the security and flexibility of iBTC with the high-yield potential of CurveLend and DeFi Money. By following these steps and maintaining a focus on risk management, you can unlock consistent, double-digit returns on your Bitcoin.
Stay tuned for more advanced strategies in the iBTC ecosystem. Happy lending, and as always, DYOR (Do Your Own Research)!
About iBTC
As a decentralized wrapped Bitcoin, dlcBTC leverages Discreet Log Contracts (DLCs) and Chainlink's Cross-Chain Interoperability Protocol (CCIP) to provide a theft-proof bridge to cross-chain DeFi, backed by the security of the Bitcoin network. dlcBTC unlocks yield for your Bitcoin in DeFi with the benefit of lower fees and merchant self-custody, empowering users to put their Bitcoin to work.
Website | X (Twitter) | Telegram | Discord | Dune Dashboard
