NEW Bitcoin yield on rhino.fi: Earn up to 10% on your wBTC

Why Bitcoin DeFi yields are big news

Until now, Bitcoin yield opportunities have been hard to come by.

Bitcoin’s native blockchain was built without the smart contracts that have powered DeFi on Ethereum. If you hold Bitcoin on Bitcoin, you can do practically nothing apart from buy and sell it.

Ethereum has partially solved this problem by creating wrapped Bitcoin (wBTC), a counterpart to regular BTC which works with Ethereum and other ERC-20 blockchains. As we explained in a blog post on this topic, it’s a bit like an iPhone app that’s been recoded to work with Android.

But, despite the emergence of wrapped tokens, people have been wary of lending out their wBTC. Many early-stage yield projects promised massive yields, but they inflated these returns by pumping vast amounts of their own token. So investors found that:

• They were depositing mainstream, popular tokens and receiving niche, unpopular ones in exchange.
• The token pumps led to hyperinflation which quickly rendered their ‘gains’ worthless.

Faced with this problem, many people (unsurprisingly) felt it was better to HODL the most valuable asset in crypto.

Enter Sommelier, with a new kind of yield opportunity.

Sommelier’s Real Yield opportunities enable users to earn in recognised tokens and they avoided the kind of gimmicks that damaged the reputation of DeFi projects in the early days.

Sommelier’s strategies, built by actual fund managers, automatically rebalance users’ deposits between recognised yield partners such as Curve, Aave and Balancer, in search of the highest yield.

We’ve got a technical post which explains this in detail, but essentially it means that:

1. Sommelier’s strategies can pay high returns without cynical tactics (think innovation, not inflation).
2. These strategies can pay out in recognised tokens – often the same tokens the investors have deposited.

We’ve already introduced Real Yield ETH on rhino.fi, and now we’re going even further with wBTC.

So now you can venture into an advanced DeFi opportunity with BTC, and maximise its value while HODLing in preparation for the next bull market.