Thanks to pBTC and Eidoo it is possible to do yield farming with bitcoin.
In fact, although Eidoo’s Steroids Yield Farming is a program managed with smart contracts on the Ethereum blockchain, therefore not directly compatible with BTC, thanks to the use of pBTC it is possible to use bitcoin for yield farming.
pBTC is in fact an ERC-20 token on the Ethereum blockchain, which can be used on smart contracts such as those of the Steroids Yield Farming programme.
Moreover, every single pBTC token represents a single BTC, with a 1:1 ratio, and can be generated and redeemed at any time.
The procedure for yield farming with pBTC
This means that in order to do yield farming with bitcoin on Eidoo, it is first necessary to exchange BTC for pBTC.
The procedure is very simple, and is done directly within the app.
The Eidoo wallet allows swapping almost instantly BTC to pBTC, and vice versa pBTC to BTC, with a fixed ratio of 1:1.
Therefore the first simple step is to swap BTC for pBTC on Eidoo after depositing them.
Upon receiving pBTC, they can be staked on the app to receive PNT tokens in return, i.e. the governance tokens of pNetwork.
pNetwork is not only the DAO that creates the pTokens, such as pBTC, but also works closely with Eidoo to integrate its services into the wallet.
For this reason, staking pBTC stored on the Eidoo wallet, in order to earn PNT tokens, is very simple: simply use the function that allows sending the pBTC stored in the wallet to the smart contract of the Steroids Yield Farming program.
On Steroids.finance it is possible to check at any time the annual rate of return (APY) of the staking.
At this moment, for example, the APY of pBTC is higher than 51%, i.e. for each pBTC staked in one year, it should yield PNT tokens with a total value of about half a bitcoin.
To generate these gains the Steroids program uses the WBTC/pBTC incentivized pool on Uniswap, i.e. it provides this pool with the pBTC staked by users using the Steroids Yield Farming function.
This percentage varies continuously, depending on the market supply/demand ratio and the value of the PNT token in which the profits are paid out.
Finally, it should be remembered that the Steroids Yield Farming smart contracts on the Ethereum blockchain are decentralized, so they allow the user to enter and exit the staking of pBTC at any time, in order to regain full possession of the tokens at any time.
Any conversion of pBTC tokens to BTC can also take place without restrictions of any kind and at any time.
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