Though we at Beefy are proud EVM-chain natives, we can’t help but harbor a soft spot for Bitcoin and the passionate support of the orange coin community. That’s why, since the earliest days of our protocol, we have sought to bring our users access to amazing autocompounding returns on their Bitcoin through EVM derivatives, like Wrapped Bitcoin (wBTC) and Synthetix’s Synthetic Bitcoin (sBTC).
Now, we are excited to bring users the latest Bitcoin derivative on the market - Multichain’s multiBTC - together with some eye-watering autocompounded yields.
Multichain is the ultimate cross-chain router protocol for Web 3.0, which facilitates the bridging of over 3,000 different crypto assets. The protocol currently supports over 80 different chains, by amassing liquidity in supported assets on each chain to facilitate bridging requests by users. Fees are typically charged as a percentage of the amount bridged.
Multichain’s proprietary technology is also used across the industry as an open and permissionless protocol to facilitate cross-chain experiences and functionality. A good example is our $BIFI Bridge, which allows users to seamlessly transfer their $BIFI tokens between any of our 18 chains directly from our web application. The bridge was built on top of and in partnership with Multichain as one of the only bridging providers who could keep up with the number of chains Beefy has deployed to.
What is multiBTC?
multiBTC is an ERC-20 derivative BTC token native to the Ethereum blockchain. It is a redeemable form of Bitcoin, meaning that holders can swap their BTC and multiBTC through Multichain at any time at a 1:1 ratio (after fees). In theory, this should peg the value of the two assets at all times.
The creation of multiBTC was spurred on by difficulties with the Ren protocol - the issuer of another major BTC derivative, renBTC - which has struggled with compatibility issues arising from the upgrade of their protocol to Ren 2.0. Ren had warned users that the original renBTC token would not be upgradeable, and may lose its peg if not manually redeemed for BTC through their protocol. This has left a significant gap in the market for BTC derivatives, which Multichain (and its MultiDAO) seeks to bridge with multiBTC.
multiBTC Launch Incentives
To support the launch of multiBTC, Multichain and its MultiDAO have passed an adoption proposal that aims improve the liquidity of multiBTC for the market. For this, they have teamed up with Curve Finance to launch a multiBTC Curve metapool, paired with two other popular BTC derivatives - wBTC and sBTC. This new pool has already been included in the Curve incentives gauge, so is eligible for receiving CRV rewards. The pool offers users a route to move their BTC into existing DeFi applications using wBTC and sBTC via the Multichain bridge and multiBTC. In reverse, it also gives existing derivative BTC users on Ethereum a means to exit back to the Bitcoin mainnet.
As part of these efforts, MultiDAO has approved a sizeable spending package on early liquidity incentives, to be used either for liquidity gauge bribes in favor of the new multiBTC Curve pool, or for accumulating strategic CRV reserves to use in gauge votes. The proposal calls for $30,000 in spending on incentives per month for the first 6 months from launch.
Needless to say, this presents an amazing opportunity for the yield farming community to earn outsized returns on their BTC.
Image by Multichain, used with author’s consent. © 2023 Multichain.
To celebrate the arrival of multiBTC, we are proud to bring you our very first multiBTC Beefy vault, built on top of the new Curve metapool. With Curve gauge incentives for the pool currently floating at around 15% APR, we are excited to add the power of autocompounding to the mix, to achieve even higher APY returns for our users. But that’s not all…
As with all of our Curve vaults on Ethereum, we are excited to be building on top of Convex Finance, to ratchet up user returns one step further. Convex is a CRV accumulator that offers additional CVX returns as an incentive to deposit Curve liquidity with the protocol, so that it can amass CRV tokens and gain influence over the Curve incentives gauge. With Convex, Curve liquidity providers receive higher levels of incentives than they would from depositing directly into the Curve gauge.
By combining the power of Multichain and multiBTC with Convex’s optimal approach to Curve liquidity rewards and Beefy’s market-leading autocompounding vaults, we can now offer users the highest returns on their BTC from across the industry, coupled with the safety and diligence that our users know and trust.
Taking a step back, it’s absurd to dream that a near-completely-distributed asset like Bitcoin - built around the idea of immutable digital scarcity - can be packaged in a way that offers users a rapidly-growing share of its total supply. Opportunities like this may only come around once in a lifetime, and certainly never last very long.
So don’t hesitate to grab these enormous returns on your BTC with Beefy while you can. Your great-grandchildren will thank you…