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)
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.
Key sbvUSD advantages:
10% target APY
Strategies are managed by Keyrock, a digital asset market maker founded in 2017, specializing in providing liquidity solutions across centralized and decentralized trading venues. Keyrock is considered a trusted professional partner in the digital asset industry. They have:
Strong Regulatory Compliance: Keyrock has achieved Enhanced PSAN registration from France's Autorité des Marchés Financiers (AMF) and secured registration under Liechtenstein's TVTG, reflecting its adherence to stringent regulatory standards and commitment to market integrity.
Strategic Collaborations with Established Financial Institutions: Keyrock has formed partnerships with reputable entities such as Societe Generale-FORGE to enhance liquidity for MiCA-compliant stablecoins and with Deutsche Bank to streamline cross-currency operations in digital markets, underscoring its credibility and reliability in the financial sector.
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 Keyrock.
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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