Glossary
A comprehensive reference guide to key terms and concepts in the Bitcoin Yield ecosystem. This alphabetized glossary helps users quickly look up definitions and better understand the technical languag
Glossary
Bitcoin Yield
A decentralized staking protocol that allows Bitcoin holders to earn passive income on their BTC holdings through the Botanix network.
Botanix
The Layer 2 solution for Bitcoin powered by Spiderchain technology that enables faster and cheaper transactions while maintaining security.
BTC
The native cryptocurrency of the Bitcoin blockchain and the asset being staked in the Bitcoin Yield protocol.
Claim
The second step in the withdrawal process where users receive their BTC after a withdrawal request has been processed.
EIP-4626
Ethereum Improvement Proposal that standardizes tokenized vault interfaces, which Bitcoin Yield implements for better DeFi compatibility.
Exchange Rate
The conversion rate between stBTC and BTC that reflects accumulated yield, calculated as (Total BTC in Protocol / Total stBTC Supply).
Gas Fees
Transaction fees paid by users on the Botanix network, 50% of which are distributed to stBTC holders as yield.
Layer 2
A secondary framework built on top of a blockchain (in this case, Bitcoin) that improves scalability and transaction speeds.
Non-rebasing Token
A token design where the token count remains fixed while the value of each token increases, as opposed to rebasing tokens where quantity changes.
pBTC (pegged BTC)
An intermediate token used in the Bitcoin Yield protocol that represents Bitcoin at a 1:1 ratio before being converted to stBTC.
Proof-of-Stake (PoS)
A consensus mechanism where validators are selected to create new blocks based on the amount of cryptocurrency they have staked.
Request
The first step in the withdrawal process where users initiate the conversion of their stBTC back to BTC.
Slashing
A penalty mechanism in proof-of-stake systems where validators lose a portion of their staked assets for malicious behavior or rule violations.
Spiderchain
The technology behind Botanix that implements a proof-of-stake Layer 2 solution for Bitcoin.
stBTC
A non-rebasing wrapped token representing staked Bitcoin in the Bitcoin Yield protocol that increases in value as yield accrues.
Staking
The process of depositing cryptocurrency (in this case, Bitcoin) to support a blockchain network's operations in exchange for rewards.
Tokenized Vault
A smart contract that accepts deposits of an asset and issues tokens representing a claim on those deposits plus any yield.
Validator
A participant in the proof-of-stake network responsible for validating transactions and creating new blocks.
Yield
The return earned on staked Bitcoin, generated from transaction fees on the Botanix network.
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