STBTC launch: new Bitcoin yield standard
Botanix Labs, Bitcoin Layer 2 with EVM functionality, recently launched STBTC. STBTC is a one-to-one Bitcoin asset that redistributes transaction fees on the network to holders as yields. Users can wager Bitcoin to earn additional Bitcoin without inflation token discharge, points program, or mandatory lockups.
Founded in Harvard by Willem Schroé in 2023, Botanix acts as a two-protocoin layer protocol or sidechain similar to liquid networks and rootstocks, but there are some new differences, including the use of more modern scripting tools in Bitcoin, sharing network fare revenues with stakeholders, and sharing a coalition of Cundody Operators. According to Schroé, the mainnet has been open for two months, processing 10 million transactions with 100% uptime for PEG-INS and PEGUTS.
Where does yield come from?
The most important question about products with yields is where the yield comes from? If you can’t get a simple answer to that question, you’re the yield.
As the crypto industry matures from eras like FTX, Blockfi and Ponzi of celsius, which contributed to the 2022 crash, new, stable forms of yields are emerging throughout the industry. For example, Cash App reported that it had earned an APR of 9% or more on Lightning Network prices earlier this year. This is the yield that can only be obtained by promoting more efficient routing of payments across the Bitcoin network.
Botanix takes a similar conservative approach to set up a new STBTC token to win 50% of all transaction fees paid on the Botanix network, paying stakeholders from the economic success of its ecosystem and industry-wide integration. Today, STBTC boasts an APR of 34% each year, but Schroé explained that this is due to the accumulation of undistributed rewards from its Prelaunch. He hopes STBTC’s APR will stabilize by about 5-6% in the future.
According to Schroé, the STBTC token agreement is open source and has been audited by Spearbit and Sigma Prime and follows the EIP-4626 standard. STBTC tokens must be backed on-chain, displayed one-to-one. Botanix has a step-by-step guide on how to check for spare proofs.
Users can deposit BTC into Botanix Federation via the Botanix Bridge and claim a comparable amount of Botanics tier of 2 Bitcoin via EVM compatible wallets like Metamask. The terminology is a bit confusing as Botanic Stoken has a ticker “BTC” unlike other somewhat similar products (e.g. WBTC) that wraps Bitcoin and bridges it to other blockchains. Nevertheless, Botanix BTC can move across the crypto EVM compatible ecosystem as other similar assets. Once you have your Botanix BTC, you will bet on the Botanix yield page, convert it to STBTC and start earning its sweet yield. You can also purchase STBTC using BTC at Bitzy.app/swap.
Staking could add Proof-of-Stake style security to the Botanix Network, unlocking other benefits in the future, and providing users with the power to vote for important network events.
Will you receive a reward to take away your loan?
The invention of assets controlled by BTC, including yield, should not be understated. Most of the TRADFIs chase Saylor’s stock (NASDAQ:MSTR) To effectively generate yields. “Working” assets for you is the basis of traditional finances and the investment model there. A great example of such a financial product being unlocked is that you can take your loan against Bitcoin and help Bitcoin repay the loan.
For example, users can currently take USDC loans against STBTC via the Stargate Defi protocol at 0.6% APR. For example, you can test this by logging in to dolomite with a meta mask wallet connected to botanix. Also, look at USDC.E, which has a free floating average APR of less than 1%. STBTC means creating an interest payment on USDC.E and expanding the total balance of STBTC. Note that this appears to float freely rather than fixed interest rates. Therefore, before making a financial decision, understand the dynamics of your loan.
According to a recent Botanix press release, there is no lock time. Users can exchange funds and withdraw and resolve the transaction at any time.
User Experience
The user experience and design of the Botanix network is very similar to that of other EVM chains and Defi protocols, using the same terminology that many crypto users know well. The fact that this protocol allows users to make Bitcoin work without putting their underlying assets at a great risk is a major achievement, although the product is still in its early stages.
The design of the Alde and Bridge website feels clunky compared to the refined designs of other Defi portals, such as Uniswap, which most users know well. And it may be confusing for the user at first as they wrap their heads around the ticker. Botanix BTC should probably follow customs and do not copy the base asset ticker. Just like the liquid was done with L-BTC and LOTSTOCK, it doesn’t choose anything like BBTC.
Ultimately, Botanics may soon be able to bring Bitcoin to a programmable, decentralized financial world, bridging it with the creator’s crypto ecosystem. Its product design has probably improved just as quickly, and perhaps we are one step closer to having a Bitcoin bank in cyberspace with all the financial services the public expects.
になったんです。 English: The first thing you can do is to find the best one to do.
This post Botanix Labs announced the yield on Bitcoin from STBTC: Network Fees 34% APR first appeared in Bitcoin magazine and is written by Juan Galt.
