Earnings from Bitcoin Network Fees Reach 34% Annual Rate

Launch of stBTC: New Bitcoin Yield Standards

Botanix Labs a Bitcoin Layer Two that has EVM functionality, launched stBTC recently, a bitcoin-backed asset with a 1:1 ratio. This bitcoin asset redistributes network transaction fees to the holders in return for a yield. Users can earn bitcoin by staking it, without any inflationary token emission or lockups.

Botanix, founded in 2023 at Harvard by Willem Schroé, operates as a Bitcoin Layer Two protocol or sidechain similar to the Liquid Network and Rootstock — but with some novel differences, including the use of more modern scripting tools in Bitcoin, the sharing of network fee revenue with stakeholders and a federation of 16 node operators As its custody foundation. The mainnet has been live for two months and has processed 10 million transactions with 100% uptime for peg-ins and peg-outs, according to Schroé.

What is the yield?

When it comes to a product with a high yield, the first question you should ask is where did that yield come from. The yield is you if there’s no easy way to answer this question.

New, stable yields are being created across the entire industry as the crypto-industry matures. Cash App has earned over 9% APR on Lightning Network Fees were paid earlier in the year. This yield can be achieved only by improving payment routing within the Bitcoin network.

Botanix, which has a conservative yield strategy, set up the new stBTC to earn 50% from all fees charged on the Botanix Network. It pays its investors from the financial success of their ecosystem, and the integrations within the industry. Today, stBTC boasts a 34% yearly APR, though Schroé explained that this is because of an accumulation of undistributed rewards from its prelaunch; he expects the APR on stBTC to stabilize around 5-6% in the future.

According to Schroé, the stBTC token contract, which is open source The following are some examples of how to get started: has been audited by Spearbit and Sigma PrimeFollows the EIP 4626 standard The stBTC tokens must be backed on-chain and one-to-1. Botanix offers a guide that explains how to use the platform. verify their proof of reserves.

Botanix users can now deposit BTC via their Botanix account. Botanix bridge You can claim Botanix Layer Two Bitcoin via an EVM compatible wallet such as Metamask. This can get confusing, as Botanix has a ticker that is similar to the EVM. “BTC,” Other products, such as WBTC (which wraps bitcoin) and connects it to another blockchain are not the same. Botanix BTC, however, can be moved across any crypto EVM compatible ecosystem just like other assets. You can bet Botanix BTC at any of the Botanix yield pageYou can also buy stBTC with BTC at. You can purchase stBTC by using BTC. bitzy.app/swap.

The Botanix Network will benefit from the addition of Staking, which adds a proof-of stake style of security. It is also likely to unlock future benefits and give users the ability to vote for important network events.

How to get paid for taking out a loan??

It is important to not undervalue the invention of BTC assets that yield a return. The majority of traders are chasing Saylor’s stocks (NASDAQ: MSTRIt is a good investment because it produces a yield. Assets “work” For you, traditional finance is the cornerstone that has shaped investment models. A great example of what such a financial product unlocks is the ability to take out a loan against your bitcoin and have your bitcoin help you pay off the loan — similar to how you might take out a mortgage on a rental home.

Stargate protocol users are able to take USDC loans on their stBTC as low 0.6% APR. This can be tested by signing into Dolomite Metamask wallets that are connected to Botanix, as an example. USDC.e With a floating average APR under 1%. Your stBTC would be able to make USDC.e payments for interest while still growing your stBTC total balance. Remember that this is a floating interest rate and not a fixed one. Before making any financial decisions, make sure you understand how the loan works.

Botanix has released a press release stating that users have no time restrictions and can withdraw or swap funds whenever they want, to settle their trades.

A User-Friendly Experience

Botanix’s user interface and design is similar to other networks. EVM chains and defi protocols, with crypto-to-crypto swap boxes, using the same terminology many crypto users are familiar with — such as bridges and yield. Although the product has just begun, it is already a great achievement to be able to use bitcoin without having to risk the value of the original asset.

Yield and Bridge websites feel clunky compared the sleek designs of other defi web portals such as Uniswap which are probably familiar to most users. The tickers can be confusing at first for new users. Botanix BTC is likely to be a bit more conventional and use bBTC as opposed to the L-BTC ticker used by Liquid and Rootstock.

Botanix has brought Bitcoin to the decentralized, programmable world and may just be able to bridge it with the creator cryptocurrency ecosystem. Botanix’s product will probably improve as quickly, possibly bringing us one step closer to the Bitcoin bank of cyberspace with all financial services people expect.