1 week ago
Decentralized concern (DeFi) protocol Umoja has released a merchandise that allows Coinbase wrapped BTC (cbBTC) token holders to gain a 6% output connected layer-2 web Base.
Umoja achieves its output by tapping into a scope of centralized and decentralized speech strategies including covered calls and arbitrage, which involves buying an plus astatine connected 1 venue and simultaneously selling it for a higher terms connected different venue.
It's worthing noting that cbBTC is simply a wrapped token and not bitcoin (BTC) itself, it is an erc20 token backed 1:1 by bitcoin held astatine Coinbase.
The Umoja protocol supports a fig of Yield Vault Tokens (YVTs) collateralized by cryptocurrencies (including existent satellite plus tokens).
One of those YVTs is yBTC, which is minted erstwhile users deposit cbBTC connected the protocol.
Acquiring a output connected BTC utilizing DeFi strategies has been a arguable taxable for bitcoin maximalists, who are mostly opposed to the DeFi assemblage and altcoins.
However, arsenic BTC continues its plunge from supra $100K to the April 7 debased of $74.8K, capitalist request for achieving a output to mitigate against spot worth losses looks acceptable to increase.
Japanese steadfast Metaplanet has recently started to gain a yield connected bitcoin by purchasing spot assets astatine the aforesaid clip arsenic enactment options, past selling premium connected enactment options arsenic terms slumps.
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