💰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.
🔹 Institutional Earning Opportunities
Whitelisted LPs and borrowers can earn with BitVault through the following mechanisms:
sbvUSD (Staked bvUSD)
DEX revenue
Third-party rewards
Retail participants can access bvUSD through secondary markets and earn yield exposure via sbvUSD, DEX participation, and qualified third-party programs.
🔹 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 risk-adjusted returns from a multi-strategy yield product managed by institutional asset manager partners.
Where does sbvUSD yield come from?
sbvUSD vault share tokens: Holders accrue interest from the yield generated via the vault share token, a design implemented by VaultCraft, the creators of institutional-grade, tokenized yield vaults using safe.global to manage ERC4626 vaults
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 BVAULT: 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
Projected yields informed by institutional manager performance (average 12-month returns range from +15% to 40% net-of-fees).
Transparent, on-chain reporting of aggregated strategies.
Daily monitoring, monthly performance reviews, and reinforced liquidity reserves.
Dynamic rebalancing of capital across partners for optimized yield and capital protection.
Institutional Liquidity Partners
GSR: Provides regulated institutional liquidity solutions and cross-market arbitrage execution.
Auros: Manages high-frequency trading and market making with real-time risk optimization.
Fasanara Capital, LM5, Hyperithm: Deliver diversified exposure across credit, quant, and systematic trading. All partners are subject to continuous oversight, formal quarterly reviews, and real-time performance tracking through BitVault’s operations team.
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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