Question 1

What is Bitcoin yield and how does it work?

Accepted Answer

Bitcoin yield refers to the returns you can earn on your BTC holdings through various mechanisms like staking, lending, liquidity provision, or DeFi protocols. Instead of simply holding Bitcoin, you can put your BTC to work and earn additional rewards, typically expressed as an Annual Percentage Rate (APR) or Annual Percentage Yield (APY).

Question 2

What is Bitcoin staking and can you stake BTC?

Accepted Answer

While Bitcoin itself uses Proof of Work and cannot be directly staked like Proof of Stake coins, you can earn staking-like rewards through wrapped Bitcoin (WBTC), liquid staking tokens, or Bitcoin Layer 2 solutions like Babylon and Stacks. These protocols allow you to earn yield on your Bitcoin while maintaining exposure to BTC price movements.

Question 3

What APR can I expect from Bitcoin yield products?

Accepted Answer

Bitcoin yield rates vary significantly depending on the platform and risk level. Conservative options like centralized lending platforms typically offer 1-5% APR, while DeFi protocols and liquidity pools can offer 5-20% or higher. Higher yields generally come with increased risks.

Question 4

What are the risks of earning yield on Bitcoin?

Accepted Answer

Key risks include smart contract vulnerabilities, counterparty risk (for centralized platforms), impermanent loss (for liquidity provision), and custodial risks. Some products require you to give up custody of your Bitcoin, while others use non-custodial smart contracts.

Question 5

How do I choose the best Bitcoin yield product?

Accepted Answer

Consider factors like APR rates, custody type (self-custody vs. custodial), KYC requirements, minimum deposits, lock-up periods, and the platform's track record. Diversify across multiple platforms and never invest more than you can afford to lose.

			Reward Asset	Category	Custody	KYC	Availability
Sypher Capital Bitcoin Yield Fund BTC • Fund Managed	4.50%	$6.00M	BTC	Fund Managed	third-party	yes	Open
Lombard Bitcoin Earn LBTC • Vault	4.09%	$50.64M	LBTC	Vault	multisig	no	Open
Coinbase Bitcoin Yield Fund BTC • Fund Managed	4.00%	$0	BTC	Fund Managed	third-party	yes	Open
Amboss Magma BTC • Liquidity	3.62%	$21.51M	BTC	Liquidity	self	no	Open
Zest Protocol sBTC • Lending	3.46%	$46.74M	sBTC	Lending	multisig	no	Open
Starknet BTC Staking STRK • Staking	2.70%	$44.72M	STRK	Staking	multisig	no	Open
Solv BTC+ BTC+ • Vault	2.03%	$22.47M	BTC+	Vault	multisig	no	Open
Lightning Network BTC • Liquidity	1.00%	$337.62M	BTC	Liquidity	self	no	Open
Amboss RAILS BTC • Liquidity	1.00%	$3.86M	BTC	Liquidity	self	no	Open
Morpho Gauntlet Vault wBTC • Vault	0.89%	$3.65M	wBTC	Vault	multisig	no	Open
stBTC Vault (Botanix) stBTC • Liquid Staking	0.82%	$3.34M	stBTC	Liquid Staking	multisig	no	Open
Lombard Finance LBTC • Liquid Staking	0.38%	$1.63B	LBTC	Liquid Staking	multisig	no	Open
Babylon BABY • Staking	0.04%	$3.48B	BABY	Staking	self	no	Open
Yield Basis cbBTCAt Capacity cbBTC • 2 vaults	7.65%max	$74.53Mtotal	cbBTC	LP Token	self	no	At Capacity
Yield Basis WBTCAt Capacity WBTC • 2 vaults	4.54%max	$37.50Mtotal	WBTC	LP Token	self	no	At Capacity
Yield Basis tBTCAt Capacity tBTC • 2 vaults	3.83%max	$38.50Mtotal	tBTC	LP Token	self	no	At Capacity
Merlin ChainComing Soon MERL • StakingSoon	16.20%	$8.59M	MERL	Staking	third-party	no	Open
AcreComing Soon tBTC • VaultSoon	11.00%	$3.30M	tBTC	Vault	multisig	no	Open
sBTC Dual Stacking (Boosted Yield)Coming Soon sBTC • Liquid StakingSoon	5.00%	$0TVL data is not currently public	sBTC	Liquid Staking	multisig	no	Open
Mezo EarnComing Soon BTC • StakingSoon	4.00%	$4.96M	BTC	Staking	multisig	no	Open
Z ZenrockComing Soon ZenBTC • Liquid StakingSoon	3.25%	$0	ZenBTC	Liquid Staking	multisig	no	Open
sBTC Dual Stacking (Base Yield)Coming Soon sBTC • Liquid StakingSoon	0.50%	$0TVL data is not currently public	sBTC	Liquid Staking	multisig	no	Open

Find the Best Yield for Your Bitcoin

Latest Research

E9: How Lombard Onboarded Billions to Bitcoin DeFi w/ Jacob Phillips - Co-Founder of Lombard Finance

E8: No More Custodial Bitcoin - The Future of BitVM Banking with Alexei Zamyatin - Co-Founder of BOB

E7: Managing Risk from Wall Street to DeFi - Evgeny Gokhberg (CEO of Re7 Capital)

Lombard Bitcoin Earn

Coinbase Bitcoin Yield Fund

Sypher Capital Bitcoin Yield Fund

What Happened This Week in Bitcoin Yield

Is Bitcoin Yield a Lie? Our Response to Forbes [Latest Newsletter]

The BitcoinYield Newsletter: Edition 9

E9: How Lombard Onboarded Billions to Bitcoin DeFi w/ Jacob Phillips - Co-Founder of Lombard Finance

E8: No More Custodial Bitcoin - The Future of BitVM Banking with Alexei Zamyatin - Co-Founder of BOB

E7: Managing Risk from Wall Street to DeFi - Evgeny Gokhberg (CEO of Re7 Capital)

Lombard Bitcoin Earn

Coinbase Bitcoin Yield Fund

Sypher Capital Bitcoin Yield Fund

Yield Products

Frequently Asked Questions

Find the Best Yield for Your Bitcoin

Latest Research

E9: How Lombard Onboarded Billions to Bitcoin DeFi w/ Jacob Phillips - Co-Founder of Lombard Finance

E8: No More Custodial Bitcoin - The Future of BitVM Banking with Alexei Zamyatin - Co-Founder of BOB

E7: Managing Risk from Wall Street to DeFi - Evgeny Gokhberg (CEO of Re7 Capital)

Yield Products

Frequently Asked Questions

What is Bitcoin yield and how does it work?

What is Bitcoin staking and can you stake BTC?

What APR can I expect from Bitcoin yield products?

What are the risks of earning yield on Bitcoin?

How do I choose the best Bitcoin yield product?

Get updates on all the latest developments with our newsletter