💰EARN with bvUSD
Put your bvUSD to work
BitVault provides profit opportunities for both institutional liquidity providers (LPs) and retail users through bvUSD and its yield-bearing variant sbvUSD.
🔹 Earn as an institutional LP
Whitelisted LP’s and borrowers are eligible to earn with BitVault the following ways:
Stability Pool interest in bvUSD, VCRAFT, and liquidated collateral.
sbvUSD (staked bvUSD)
Yield
Fees
DEX revenue
Third party rewards
Retail will be able to access bvUSD on the seconary and tertiary markets, and will be able to earn via sbvUSD, DEX revenue, and be eligible for third party rewards as well, dependent on how they are distbibuted by BitVault.
🔹 Stability Pool Interest
Whitelisted institutional LPs can be whitelisted to deposit bvUSD into Stability Pool smart contracts to earn rewards from two sources:
Interest revenue: BitVault directs a significant portion of its interest revenue in bvUSD, VCRAFT, and liquidated collateral.
Liquidation gains: When a Trove is liquidated, depositors receive a pro-rata share of the liquidated collateral at a discount.
Read more about Stability Pools, Troves, and liquidated collateral here.
🔹 sbvUSD (Staked bvUSD)
Both Institutional borrowers and retail can stake bvUSD for sbvUSD, a yield-bearing version of bvUSD, offering users the ability to earn sustainable returns from a multi-strategy yield product managed by partner GSR, with more strategy curators planned to come onboard in the future.
Where does sbvUSD yield come from?
Bitcoin & crypto yield strategies: A mix of delta-hedging BTC, ETH, SOL, and other crypto spot assets using perpetual futures and deliverable contracts.
bvUSD and VCRAFT: BitVault can direct additional incentives the form of the protocol’s stablecoin and governance token if proposed and passed by protocol governance.
sbvUSD vault share tokens: Holders accrue interest in the vault share token, a design implemented by VaultCraft, the creators of institutional-grade, tokenized yield vaults using safe.global to manage ERC4626 vaults
Key sbvUSD advantages:
Target: 10% APY
BitVault’s sbvUSD is a yield-bearing stablecoin backed by BTC collateral and powered by institutional-grade strategies managed by GSR and Auros — two of the most respected names in digital asset market infrastructure.
GSR: A Regulated Liquidity Powerhouse
GSR specializes in bespoke liquidity solutions across centralized and decentralized markets and is a strategic partner to many of the world’s largest financial institutions. Notable attributes include:
Regulatory Compliance: GSR holds Enhanced PSAN registration from France’s Autorité des Marchés Financiers (AMF) and is registered under Liechtenstein’s Token and TT Service Provider Act (TVTG). This reflects its commitment to transparency and institutional standards.
Institutional Partnerships: GSR collaborates with global banks such as Deutsche Bank (for cross-currency settlement infrastructure) and Societe Generale-FORGE (for regulated stablecoin liquidity), reinforcing its position as a credible and capable capital allocator.
Auros: Real-Time Capital Efficiency in Crypto Markets
Auros is a crypto-native algorithmic trading firm focused on high-frequency trading and strategic capital deployment across digital asset markets. With billions in daily notional volume:
Programmatic Liquidity: Auros brings market-making expertise and arbitrage strategies that enhance sbvUSD’s real yield, while minimizing directional risk.
DeFi-Native Risk Management: As a capital manager and liquidator for BitVault’s ecosystem, Auros helps ensure stability and efficiency by supporting key components like Smart Vaults and liquidation infrastructure.
More on institutional yield with sbvUSD
To generate consistent returns across all market conditions, BitVault deploys a diversified suite of battle-tested, institutional strategies:
Positive Funding Rate Arbitrage
Earns yield when BTC, ETH, SOL, etc. perpetual futures trade above spot.
bvUSD is used as collateral for ETH Perps (for example) short position
bvUSD is used to purchase ETH Spot → delta neutrality is achieved
Funding is collected from the ETH Perps position
To enhance this yield we can
Optimize borrow rates to maximize yield with preferential terms with CEX partners
Lend the ETH out in money markets, or swap it for an LST
Negative Funding Rate
Profitable in bear markets or during volatility spikes.
BitVault takes long positions in discounted perps and hedges spot, capturing the inverse funding rate.
Cross-Exchange Arbitrage
Exploits price inefficiencies between CEXs (e.g., Binance, Coinbase) and DEXs.
High-frequency, market-neutral strategy executed via institutional partners like GSR and Auros.
Native BTC LST Yield
BTC LSTs generate passive yield through protocols like Solve.
BitVault ensures LST yields are preserved while sbvUSD strategies add layers of return.
🔹 DEX revenue
Whitelisted, institutional borrowers can not only provide liquidity in AMM’s to earn trading fees, but can also collaborate with BitVault to earn additional revenue by providing liquidity into Stability Pools.
🔹 Third Party Rewards
As BitVault expands onto other chains and ecosystems, institutional borrowers will be eligible to coordinate to earn third party incentives with BitVault.
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