We’re unlocking enhanced BTC yields on Arbitrum as Bitcoin reaches new all-time highs!
With BTC recently surpassing $88,000 and its market cap climbing to $1.77 trillion, signaling a potential new bull market, Umoja Labs is excited to launch the yield-bearing Bitcoin (yBTC) on Arbitrum. This Bitcoin staking solution emphasizes compliance, low risk, and attractive yields. Through our integration, Arbitrum will emerge as a premier Ethereum Layer 2 for BTC-native yield opportunities, empowering BTC holders with new ways to grow their assets as the market rallies.
BTCFi on the Rise: Powering the Next Bull Market 📌
Bitcoin DeFi (BTCFi) has seen remarkable growth, with Bitcoin’s Total Value Locked (TVL) in DeFi protocols now exceeding $3.9 billion. This growth highlights a trend: while Bitcoin’s market cap dominates the crypto space, only a fraction—around $100 billion—of its value flows into DeFi on EVM-compatible chains, signaling BTCFi’s potential for exponential expansion.
As BTC reaches record highs, Umoja and Arbitrum are seizing this momentum to bring BTC’s value into the DeFi ecosystem, aiming to position Arbitrum as a leading BTCFi network offering sustainable BTC-native yields.
The BTC Yield Challenge 📈
Many BTC yield options offer limited returns, with traditional yields often peaking around 1% for lower-risk options. Meanwhile, high-risk strategies may reach 20% yields by using leverage, but without any principal protection. Many options in the market also inflate returns with non-BTC rewards like NFTs or token airdrops, complicating BTC holders’ ability to monetize their holdings safely and sustainably.
Umoja & Arbitrum’s BTC Yield Loop: A Full-Cycle Solution ⭕️
To redefine BTC yield opportunities, Umoja is introducing the BTC Yield Loop—a strategic combination of DeFi tools like DEX liquidity, lending, and staking, designed to create a sustainable yield cycle for BTC holders on Arbitrum.
The BTC Yield Loop:
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Convert BTC to yBTC: Users on Arbitrum can exchange WBTC or iBTC for yBTC, immediately accessing BTC-native yield with APYs targeted between 5% and 10%.
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Use yBTC as Collateral: yield-bearing BTC holders can leverage it as collateral to borrow stablecoins, BTC, or other assets, creating liquidity for reinvestment to further amplify yields.
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Reinvest and Restake yBTC: Users can stake yield-bearing BTC, generating additional capital to reenter the loop in Step 1, establishing a robust, sustainable cycle for BTC yield growth.
For institutional participants, this cycle offers BTC-native returns that enhance existing yield strategies, potentially increasing BTC earnings by over 50%.
Why Arbitrum? 💙,🧡
Arbitrum’s secure, high-speed L2 infrastructure is ideal for scaling high-yield BTC strategies, allowing users to capture BTC-native income with low transaction fees and fast processing. This Umoja launch brings powerful tools for BTC monetization as the market moves into a new growth phase, offering BTC holders innovative ways to grow their assets in the next bull market.
Stay tuned for more updates, and follow @UmojaProtocol and @Arbitrum for the latest news. ✨