DeFi keeps offering interesting yields. Now there’s an option to get 20% on blue-chip tokens like BTC. pNetwork makes this possible and turns your BTC into pBTC. Idle DAO offers the yield in their tranches.
In these turbulent times, this may sound like a good option. Get pBTC and gain a 20% yield. Let’s see how pNetwork and Idle DAO do this.
How to Get the 20% Yield With pBTC?
The steps to follow to get this 20% yield are not too difficult. A higher APY is also possible, but the risk increases. We will explain this, and also tell you more about pNetwork. In addition, we also explain the tranches in Idle DAO.
More and more people are looking towards blue chip assets like BTC via @pNetworkDeFi during these turbulent market periods. Slow and steady wins the race. 🐢
And why not get APYs of up to 20% while you’re at it?
pBTC v2 Junior Tranche ⬇️https://t.co/3Ia1yFrWLp pic.twitter.com/hslxobZLTT
— Idle DAO (@idlefinance) June 16, 2022
By participating in this liquidity pool, your BTC will earn yield. Instead of waiting for the BTC price to go up, here’s an option to get passive income. Here are the steps you need to follow:
1) Get pBTC tokens in pNetwork just by swapping BTC for pBTC.
Source: pNetwork Swap
2) Get the required PBTCCRV tokens in a Curve pool. First, you have to deposit your pBTC in Curve Finance. See the picture below.
Source: Curve pool
3) Once you completed this step, and you received your PBTCCRV tokens, hop over to the Idle dashboard. You must go to the “tranches” section for the PBTCCRV tokens. That looks like this.
Source: Idle DAO
Note: Junior tranches give a higher APY, but have also a higher risk. Senior tranches have a lower APY but have built-in insurance. In other words, you need to figure out your risk level.
However, before you do this, an explanation on how pNetwork and the Idle tranches work is in place.
What Is pNetwork?
pNetwork moves crypto assets between blockchains. They wrap and unwrap any tokens as pTokens on any blockchain. These pTokens peg 1:1 with the underlying asset. So, in our case, 1pBTC token has the same value as 1 BTC. However, they are both on different blockchains. They extend this feature to NFTs as well. As a result, you can offer your NFTs on various NFT marketplaces, on a variety of blockchains.
They have a fairly big ecosystem. For example, Gate.io, Curve, Kyber Network, Loopring, or RSK. Just to name a few. Also, pNetwork is active on 12 blockchains and protocols. For instance, on Algorand, BNB Chain, Bitcoin, or Ethereum.
To clarify, there is a pBTC V2 available. In case you deposited pBTC V1, here’s a blog on how to migrate all to pBTC2. Nowadays, the TVL of pTokens is currently $64 million. In November 2021, it reached a stunning $250 million. See the picture below.
Source: pNetwork
What Are Tranches on Idle DAO?
The Perpetual Yield Tranches on Idle DAO are a new DeFi product. They entered the DeFi scene in December 2021. They had two different audits. One from Consesys Diligence and another one by Certik. Moreover, they offer two products, based on your risk profile.
- Junior tranches, with a high APY, but also with high risk.
- Senior tranches, lower APY, but with built-in insurance.
Tranches have five advantages;
- Flexible—Use them according to your risk profile.
- No locking period—Enter or exit your position at any time.
- Compounding yield—The protocol handles this for you. It’s automated.
- IDLE token rewards—If you use Idle strategies, you earn IDLE tokens.
- Many tokens—Pending on liquidity and which pool you use. Rewards pay out in different tokens.
The yield changes all the time, pending on how much TVL there is. The amount deposited in junior vs senior tranches also affects the APY for each tranch. In case of a hack, the senior tranch participants will get paid first. Any potential leftovers, go to the junior tranch. That is their trade-off, for getting a higher APY.
Also, Idle can tranch any protocol. They also offer fully automated risk management. Plus, leveraged yields on user deposits for different lending providers. Below is a video with an extensive explanation of the Idle tranches.
Conclusion
We showed you how you can get 20% on your pBTC. The steps to follow are easy. So, this allows you to have your BTC work for you and gain passive income.
Furthermore, we explained how pNetwork and the Idle DAO tranches work. Happy harvesting!
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