Proxy has launched a new product, iBTCpx, aimed at bridging the gap between Bitcoin and DeFi
Proxy has launched a new product called iBTCpx, aimed at helping institutions bridge the gap between Bitcoin and DeFi, offering competitive yields while avoiding risks.Author: Proxy
Compiled by: ChainCatcher
BTC Proxy (an institutional-grade Bitcoin DeFi bridge connecting Polygon/Matic and Ethereum networks) has launched a new product in its Bitcoin yield strategy suite called Interest Bearing BTC or iBTCpx. This is a complementary product designed to help institutions bridge the gap between Bitcoin and DeFi without facing risks such as impermanent loss, liquidation, or maintaining LTV ratios.
The product allows users who mint BTCpx by depositing Bitcoin into custody to stake that BTCpx into the iBTCpx staking contract, which will provide them with competitive yields compared to any BTC lending products in the market, with an expected return rate of 87% when combined with the compounding aspect of PRXY in its primary (3,3) staking product.
Recent news from MicroStrategy CEO Michael Saylor strongly indicates that large institutions are considering alternative yield strategies to generate substantial returns on their holdings. Therefore, iBTCpx is a great yield strategy as it is straightforward and can achieve returns exceeding most products in the market through compounding.
January 1, 2022, marks the day BTC Proxy launched its (3,3) base reward program, a branch of Olympus DAO on Polygon aimed at enhancing its POL (protocol-owned liquidity). Currently, this staking product compounds 3 times daily, yielding 2900%.
The primary use case of BTC Proxy is to unlock the value of BTC held by long-term holders, whales, investment funds, and the world’s "MicroStrategy" by wrapping Bitcoin into $BTCpx. Additionally, BTC Proxy uses insured custodians to create and maintain a secure and more reliable holding environment, which has become increasingly important after security breaches in centralized exchanges and decentralized financial services, where "5 out of the top 10 crypto thefts of all time" occurred this year.
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Check the details of the 170% APY calculation at https://ggle.io/4XZw.
BTC Proxy was launched on July 30, 2021, aiming to provide a more scalable second-layer protocol primarily for the tokenization of Bitcoin across multinational institutions. At the core of BTCpx is a Bitcoin bridge that uses insured multi-signature third-party custodians to facilitate the unlocking of otherwise dormant BTC. Through Proxy Finance liquidity mining and rebase staking programs, these BTC holders can now participate in DeFi 2.0 protocols for higher yields.
In other words, BTC Proxy changes the narrative of Bitcoin's utility, allowing Bitcoin to enter the ever-expanding DeFi space. Bitcoin has always been outside the DeFi blockchain world, but Proxy brings these worlds together, allowing "Bitcoin Maxies" to fully leverage DeFi 2.0 directly through Proxy Finance at prxy.fi.
According to Donn Kim, "Once large funds and institutions accumulate or mine BTC, they typically transfer it to warehouses for locking and may use it for lending programs, generating annual yields of about 7.0. We hope to overwhelm that yield with double-digit/three-digit returns." The value proposition of BTC Proxy is access to BTC with minimal risk and the ability to earn substantial yields, making it a wise choice worth serious consideration.
What drives the value of the proxy network
BTC Proxy appreciates through its governance token $PRXY, increasing circulation and liquidity with network participation. Participants are attracted by the high return rates of staked rewards and the short-term returns of Bonding, which builds the protocol's treasury and supports the value of the $PRXY token. This provides participants with the underlying opportunity to earn high returns through daily 3x compounding rewards and token price appreciation.
Participants can use Staked PRXY (sPRXY) pegged 1:1 to the $PRXY token to easily track their planned rewards in their wallets, with the token resetting to track their staking balance. iBTCpx will be launched on Proxy Finance prxy.fi on January 10, 2022.
