BTCFi Vault
Last updated
Last updated
b14g introduces BTCFi Vaults, a suite of yield-generating products designed to empower Bitcoin holders to earn consistent returns on their various Bitcoin-based assets. Built upon a robust and innovative DeFi infrastructure, our vaults simplify the process of yield generation, offering user-friendly interactions coupled with secure and efficient asset management. BTCFi Vaults embody b14g's core mission: to make Bitcoin DeFi accessible, safe, and truly rewarding for everyone.
BTCFi Vaults empower Bitcoin holders to effortlessly earn yield on their Bitcoin-based assets. Key features include:
Accepts deposits of various Bitcoin-based assets (e.g., WBTC, solvBTC.core, lstBTC)
Generates yield denominated in the deposited asset and CORE tokens
Withdraw anytime with 1-day unbonding, no lock-ups
Yield generated through lending and strategic reinvestment into the b14g Merge Marketplace
BTCFi Vaults securely and automatically generate yield through a straightforward process:
1. Deposit: Users deposit their chosen Bitcoin-based asset (e.g., WBTC, solvBTC.core, lstBTC) directly into the respective BTCFi Vault.
2. Yield Generation:
The vault supplies the deposited asset to lending platforms (e.g., Colend), earning interest rewards denominated in the deposited Bitcoin-based asset.
Additionally, the vault borrows CORE tokens against the deposited asset as collateral and strategically reinvests these CORE tokens within the b14g ecosystem, such as staking in the Merge Marketplace, generating further rewards in CORE.
3. Withdrawal: Users can easily withdraw their original deposited asset and the accumulated rewards (in both the deposited Bitcoin-based asset and CORE tokens) at any time, subject to a brief 1-day unbonding period. No lock-ups.
The BTCFi Vaults generate yield from multiple sources of yield:
Generated from lending the deposited Bitcoin-based asset (e.g., WBTC, solvBTC.core, lstBTC) through integrated lending protocols (e.g., Colend), with yield denominated in the deposited asset.
CORE tokens borrowed against deposited Bitcoin-based asset are invested into the b14g marketplace, generating yield in CORE token.
Additional b14g points for vault participants
Participating in the BTCFi Vaults, like all DeFi activities, involves certain risks you should know about. At b14g, we want to be upfront about that — and we have also proactively implemented several measures to mitigate these potential issues and ensure the security and efficiency of the vault.
Smart Contract Risks
Integration Risk
Since the yield we accumulate comes from our integrated protocols, the risks associated with them is also something we have to account for. If one of those protocols is exploited or has a critical design flaw, it could affect our vault too.
To mitigate this:
We only integrate with protocols that have strong reputations and proven security.
We’ve built a real-time risk engine that continuously monitors all integrated protocols.
Vault interactions are governed by a multi-signature system, adding a safeguard against single points of failure or unauthorized changes.
Our Current integration partners are
Colend
Liquidation Risks (related to borrowing CORE)
The vault borrows CORE tokens against the deposited Bitcoin-based asset. A significant and rapid decrease in the price of the collateral asset (e.g., WBTC, solvBTC.core, lstBTC) could lead to the vault's collateral falling below the required threshold, potentially triggering liquidation of the borrowed CORE position and potentially impacting the overall yield.
To mitigate this:
We maintain conservative collateral ratios with a health factor threshold of 1.5.
The vault constantly tracks collateral levels and will automatically rebalance or reduce borrowing if the health factor approaches that threshold.
Risk is part of DeFi—but so is smart risk management. The WBTC Vault is designed with guardrails and proactive monitoring to keep it resilient in volatile conditions.
If you're clear on how BTCFi works, including the structure, yield generation and risks, head over to your favorite vault now.
→ See how to participate in BTCFi Vaults → BTCFi Vault FAQs
Enjoy your BTCFi yield!
The vault operates through smart contracts, including those tied to Colend and the b14g marketplace. Like any code, these could contain bugs or vulnerabilities that might lead to fund loss. To reduce this risk, we have undergo thorough audits by reputable third-party security firms before deployment. These audits will scrutinize the code for potential weaknesses and ensure adherence to best security practices.
