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'Sustainable yield' is a rare concept in DeFi. Here's how our Bitcoin-secured design makes it happen.
It's a three-step flywheel:
1️⃣ Stake & use: Staked BTC via @babylonlabs_io backs Liquid Staking Tokens (LSTs), which people use in DeFi on @build_on_bob
2️⃣ Generate fees: This DeFi activity generates real transaction fees on the network.
3️⃣ Reward stakers: A portion of these real fees are paid back to the original BTC stakers, increasing the base staking APY.
This increased APY attracts MORE BTC stakers and more LSTs to the platform to be used in DeFi, which generates more fees, which further increases the APY.
Activity drives reward, which drives liquidity, which drives more activity.
A perfect flywheel effect in action.
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