Skip to main content

HybridBTC

HybridBTC is BOB's first yield-generating product, enabling Bitcoin holders to earn real yield on their BTC through BOB's cross-chain infrastructure. Like all BOB products, it reflects our commitment to making Bitcoin DeFi safer and more accessible by leveraging modern EVM tooling. We've unified best-in-class solutions into one seamless experience, from paying fees with BTC, to signing with your Bitcoin wallet, to staking your BTC directly from Bitcoin. HybridBTC builds on this foundation to deliver secure, efficient yield generation for Bitcoin holders.

Quick Overview​

HybridBTC is a yield-generating product that allows Bitcoin holders to earn real yield on their BTC through BOB's cross-chain infrastructure. Key features include:

  • Accepts deposits in multiple forms of wrapped BTC and BTC liquid staking tokens (LST)
  • Generates yield denominated in BTC plus additional incentives
  • No impermanent loss or liquidation risks
  • Managed by Veda, a DeFi protocol with over $3B in TVL
  • Yield is generated through deployment into Pendle pools and other DeFi opportunities
  • HybridBTC.pendle tokens can be used in BOB's DeFi ecosystem for additional yield sources

How It Works​

The HybridBTC.pendle vault operates across multiple chains to generate yield for BTC holders.

  1. Deposit: Users deposit their wrapped BTC or BTC LST into the HybridBTC.pendle vault on Ethereum mainnet. (e.g. WBTC, tBTC, SolvBTC, SolvBTC.BBN, or LBTC)

  2. Yield Generation: The vault deploys deposited BTC into Pendle pools on Ethereum, selling users' Babylon and LST points for BTC-denominated returns.

  3. Token Receipt: Users receive HybridBTC.pendle tokens on BOB representing their vault position and accruing yield.

  4. DeFi Yield: The HybridBTC.pendle token can be used in BOB's DeFi ecosystem for even more yield. Read the Yield Sources section below to learn more.

  5. Withdrawal: Users can redeem their HybridBTC.pendle tokens at any time to receive their original BTC or LST plus accumulated yield.

Privileged Roles and Security​

The vault employs a multi-layered security model:

  • 🔐 Distributed Control: The vault will be a shared 4-of-6 multi-sig Safe between Veda and BOB. A majority of signers is required to make any changes to the strategy, such as accepting new assets or whitelisting new markets.
  • 👀 Transparent Operations: The on-chain strategies can be monitored to verify execution and prevent misuse of funds.
  • ⚙️ Strategy Constraints: Each vault is limited to a pre-defined mandate that defines its deployment and risk management parameters.

Yield Sources​

The HybridBTC.pendle vault generates multiple sources of yield:

  1. Base Yield:

    • Generated from Pendle pool deployments
    • Real yield denominated in BTC
    • No impermanent loss risk

  2. Additional Incentives:

    • Additional rewards for vault participants
    • At launch, users receive Veda points and $OP tokens

  3. Optional DeFi Strategies on BOB:

    • Provide liquidity in DEX pools to earn trading fees
    • Use as collateral in lending protocols like Euler v2
    • Borrow additional BTC or other assets to leverage yield positions
    • Participate in leveraged yield farming
    • Note: These additional strategies may involve different risk profiles
Explore DeFi on BOB

Head over to our Apps page to discover the rich Bitcoin DeFi ecosystem on BOB.

Conclusion​

HybridBTC represents a significant advancement in Bitcoin DeFi, offering BTC holders a secure way to earn real yield across multiple chains. By combining BOB's Hybrid L2 security model with Veda's proven yield generation strategies, users can access sophisticated DeFi opportunities while enjoying a seamless, user-friendly experience that makes stacking sats simpler than ever.