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 and the crypto asset took the spotlight in mainstream media like.
Despite the fact that the ETF in question won’t hold a real Bitcoin, but rather is a futures-based instrument, investors and experts across the ecosystem have largely hailed its launch as evidence that Bitcoin has risen into the big leagues and is about to get the coveted prize will surpass 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.
Here are some strategies BTC owners can use to generate a return.
DeFi meets BTC on BadgerDAO
BadgerDAO is an open source protocol based on the Ethereum network with the specific goal of creating products and the necessary infrastructure to simplify the integration of Bitcoin into decentralized finance (DeFi).
BadgerDAO currently has the most extensive list of combined BTC pools for investors to provide liquidity to.
As can be seen in the image above from the BadgerDAO dashboard, there are various offers from simply staking Wrapped BTC (wBTC), which can yield a yield of 1.22% to 27.98% depending on the terms of the block for staking more complex liquidity provider (LP) strategies such as the renBTC / wBTC / sBTC pool, which offers a return of between 7.07% and 45.37%.
It is important to remember that there are risks associated with packaging BTC and RenVM as a user would have to give up control of the original BTC in order to get wBTC or renBTC by using the crypto code “You are not your keys, they are “not hurting 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), owners should also consider the possibility of suffering a temporary loss if the price of Bitcoin increases by a significant amount compared to the other token it is paired with.
Trader Joe is the largest decentralized trading platform by Total Blocked Value (TVL) on the Avalanche network, according to Defi Llama, with assets currently valued at $ 2.18 billion on log.
The use of wBTC in the Avalanche Network requires another layer of packaging produced by wBTC.e, which can then be traded on the network or used to provide liquidity.
At the time of this writing, 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 wBTC.e / USDT.e. All rewards are paid using the protocol’s native JOE token.
Raydium is the highest rated DeFi protocol on the Solana network, according to Defi Llama, and currently has a TVL of $ 1.77 billion.
Users who want to use their BTC in Solana have the option of pairing it with USDC, USDT, Serum (SRM), and a packaged form of Solana known as mSOL.
Returns on offer range from 5.16% to a maximum of 14.27%, and all rewards are paid in the platform’s native RAY token.
PancakeSwap is the number one protocol ranked by TVL on Binance Smart Chain (BSC), with data from Defi Llama showing that tokens valued at $ 5.39 billion are currently on the protocol.
In order to be able to use Bitcoin in the BSC, it must first be encased in BTCB, which can then carry out transactions in the network.
For now, PancakeSwap offers a yield of 5.44% for the pair BTCB / ETH, a yield of 15.82% for the pair BTCB / BUSD (Binances Stablecoin, Binance USD) and a yield of 20.79% for the pair BTCB / BNB . All rewards are paid using 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 domestic government token, DYDX, were dropped to early adopters of the platform.
Similar to the ProShares Bitcoin Strategy ETF, transactions made via the dYdX protocol are not set in real Bitcoin but in a USD stablecoin, so BTC stakers may not be overly interested – ???? – ???? The only goal is to increase Bitcoin stocks directly.
In contrast to trading in a future government-regulated product that is only available when traditional markets are open, dYdX offers the decentralized trading environment around the clock that the loyal cryptocurrencies love.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you must conduct your own investigation when making a decision.