<aside> Yield Opportunities Summary
| Strategy | Description | Expected Yield |
|---|---|---|
| Liquidity Provision | Provide liquidity to Spectra pools for trading fees | ~1% + Points Rewards |
| Lending | Supply iBTC/siBTC to Morpho lending pools | Up to 2.5% |
| Looping | Leverage discounted Principal Tokens for amplified returns | Up to 3.24% |
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The iBTC Network offers a yield enhancement strategy using Spectra Finance's Principal Tokens (PTs) and Morpho's permissionless lending markets.
This approach maximizes returns on iBTC and siBTC through three main methods:
Spectra Finance enables yield trading, while Morpho provides flexible lending markets for taking leveraged positions & earning lending yield.
<aside> Yield Token Benefits
<aside> Providing Liquidity
<aside> Supply Rates for PT-iBTC/iBTC Lending Pool:
| Scenario | Utilization | Borrow Rate | Supply Rate (Yield) | Typical Yield Range |
|---|---|---|---|---|
| Low Utilization | 25% | 1% | 0.25% | 0.2% to 0.3% |
| Medium Utilization | 50% | 2% | 1% | 0.9% to 1.1% |
| High Utilization | 75% | 3% | 2.25% | 2% to 2.5% |
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<aside> Supply Rates for PT-siBTC/siBTC Lending Pool:
| Scenario | Utilization | Borrow Rate | Supply Rate (Yield) | Typical Yield Range |
|---|---|---|---|---|
| Low Utilization | 25% | 0% | 0% | 0.0% to 0.1% |
| Medium Utilization | 50% | 1% | 0.5% | 0.4% to 0.6% |
| High Utilization | 75% | 2% | 1.5% | 1.3% to 1.7% |
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