With our 12th update, the iYield team is excited to bring you a long requested and speculated feature — Yield Bankers will be allowed to yield farm Bitcoin. Yield farming Bitcoin? How? Multi-Rewards System — What's that? Let’s take a look!
Yield Farming Bitcoin
By definition, yield farming means harvesting rewards (in other words profits). So following that line of logic, yield farming Bitcoin means you will be harvesting Bitcoin as a reward. Yep! This is what we will make possible for anyone using the Yield Bank platform.
Liquidity pools dedicated to Bitcoin Yield Farming
Through our own proprietary liquidity pools (coded from scratch by our full-stack team of developers) specifically dedicated to Yield Farming Bitcoin, users will be able to provide liquidity in a wide variety of popular crypto assets starting out with the biggest ones with the most volume, such as ETH-DAI. These pools, for example the before mentioned ETH-DAI pool would then generate rewards directly in wrapped Bitcoin (wBTC).
Yield Farming Bitcoin App
Inside the Yield Bank platform, we will have a separate uniquely branded product that focuses solely on pools where users are able to yield farm Bitcoin.
The process itself from the user’s point of view is the same as regular yield farming.
Step 1) Provide Liquidity
Step 2) Stake your LP token
Step 3) Harvest yielded rewards given to you in Bitcoin
It's as simple as that!
Advantages of our Yield Farming Bitcoin App
Bitcoin is the undisputed king of cryptocurrency — with the biggest market capitalization and most volume, the LP tokens from these pools are guaranteed to generate substantial profits due to the high trading volume. Users are now able to have an always increasing exposure to Bitcoin by yield farming it.
Our Bitcoin liquidity pools do not require you to have any preceding exposure to Bitcoin and are of course voluntary. Users who wish to continue farming in the more traditional manner and harvest yCASH rewards are welcome to do so.
Yield Farming Multi-Reward Pools
Another product which will also be separately branded inside our platform is our Multi-Reward set of Liquidity Pools, where much like any other Liquidity Pools users will also be able to provide liquidity for and liquidity mine them.
Our Multi-Reward pools structure will allow for pools to be deployed that are paying out rewards in predetermined ratios of multiple tokens that have been selected as rewards tokens for that given pool.
In regular liquidity pools, staking LP tokens belonging to those regular pools will yield a single predetermined rewards token as a reward.
We would like to take this a step further and allow rewards to be paid out to users in multiple tokens from a single LP token being staked, thus the name Multi-Reward System.
Taking this concept even much further, we would then be allowing the users themselves to select the tokens they want to be paid rewards in and what ratios should those rewards be paid out in.
Bitcoin Yield Farming and Multi-Reward Pools Use-case
As mentioned above, one of the main use-cases would be slowly building exposure towards an asset (or a multitude of assets) that was previously impossible to yield farm, such as Bitcoin. Yield Farming Bitcoin will allow you to build your exposure to BTC in very small increments, that if done regularly through trading, would cost an excessive amount in trading fees and/or ETH in gas.
This in tandem with our Multi-Reward configuration will allow users to gain exposure to an almost endless amount of assets through yield farming them at whatever ratio and pace they wish. This is a new investment strategy when it comes to diversification and increasing exposure to assets not yet seen in the cryptocurrency space.
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The article and any other associated content of Yield Bank does not constitute as financial advice. Cryptocurrencies are a high risk investment and may not be suitable for all members of the public and all types of investors. This is an experiment in DeFi yield aggregating to bring longer and steadier yields to its users.
Next article coming up: Liquidity Episode & Token Sale Launch
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Liquidity Episode date: 18th January 2021