Introduction to Bitcoin Yield

Learn about Bitcoin Yield, a protocol that enables you to earn passive income on your Bitcoin holdings. This page covers the basics of the staking mechanism, how yield is generated through the Botanix

Bitcoin Yield is a decentralized staking protocol that allows Bitcoin holders to earn passive income on their BTC holdings. By leveraging the underlying Spiderchain technology, Bitcoin Yield creates a secure and efficient way to put your Bitcoin to work while maintaining its exposure to BTC's value.

What is Bitcoin Yield?

At its core, Bitcoin Yield is a staking platform built on Botanix, a Layer 2 solution for Bitcoin. The protocol enables you to deposit your Bitcoin into a secure smart contract and receive stBTC tokens in return. These tokens represent your staked position and automatically increase in value (rather than quantity) as the protocol generates yield.

How Yield is Generated

Bitcoin Yield generates returns through a straightforward mechanism: 50% of all gas fees from transaction activity on the Botanix network are distributed to stakers. As a proof-of-stake Layer 2 solution, Botanix uses staked Bitcoin to secure its network, and in return, distributes transaction fees back to those who help secure it.

The Spiderchain Technology

The Spiderchain is the technology that powers Botanix, functioning as a proof-of-stake Layer 2 solution for Bitcoin. By staking your Bitcoin through Bitcoin Yield, you're not only earning passive income but also contributing to the security and decentralization of the Botanix network. While staking and slashing mechanisms aren't yet fully activated, the current implementation lays the groundwork for the network's long-term security model.

Benefits of Staking Bitcoin with Bitcoin Yield

• Passive Income: Earn yield on your otherwise idle Bitcoin

• Non-custodial: Your Bitcoin remains secured by smart contracts, not held by a centralized entity

• Liquidity: Receive stBTC tokens that can be traded or used as collateral

• Simple User Experience: Deposit and withdrawal processes designed for ease of use

• Security: Smart contracts based on battle-tested standards and audited by reputable firms

Bitcoin Yield represents a significant advancement in Bitcoin's utility, allowing holders to participate in DeFi activities while maintaining their Bitcoin exposure and contributing to the expansion of Bitcoin's ecosystem.