Umoja announced YBTC, a yield vault token offering over 20% annual percentage yield on Stable Bitcoin.
The launch positions YBTC as the highest yield product for native bitcoin, reflecting the growing opportunities for BTC holders in Defi, according to a note shared with Crypto.News.
Yield Vault tokens like YBTC allow users to earn passive income by depositing their Bitcoin (BTC). Each token represents a user’s share of a vault, which generates returns by using yield strategies in Defi protocols and centralized exchanges.
Umoja’s trading engine optimizes these strategies based on market conditions and provides competitive returns regardless of market trends.
“YBTC offers up to 30% APY, adjusted based on market conditions, powered by the Umoja trading engine,” Robby Greenfield IV, CEO and founder of Umoja Labs, told Crypto.News.
The UTE adapts strategies to optimize performance, according to Greenfield. It restores funds from underperforming strategies to better ones based on market conditions in a move considered “dynamic strategy switching by Umoja.
“Currently, the APY range with our BTC-delta-neutral strategy is between 5% and 30%. The UTE integrates protocols, custodians and centralized exchanges such as Binance, OKX, Bybit, GMX, Ceffu and Cobo to facilitate multiple quant and defi strategies in parallel,” Greenfield said.
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Problems with security and transparency
To address security concerns, Umoja’s protocol has undergone audits by Quantstamp, Hacken, Certik and Cyberscope.
Meanwhile, all BTC collateral is stored with institutional custodians such as Ceffu and Cobo, ensuring asset safety.
“Umoja is one of the few compliant Defi protocols. We provide thorough terms of use and risk provisions necessary to protect end users using two off-shore entities dedicated to the Umoja ecosystem,” Greenfield said.
Bitcoin’s presence in Defi is growing, with approximately $2.35 billion currently locked in decentralized protocols. Umoja aims to expand this ecosystem by providing a sustainable, simple yield solution for BTC holders.
Unlike some platforms that offer inflated or misleading APYs through complex mechanisms, YBTC’s advertised 20%+ APY is transparent and directly tied to real yield strategies.
YBTC also offers flexibility, allowing users to earn yield without committing to long lock periods or navigating the complexities of arbitrage or liquidity determination.
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Apy paid in 100% bitcoin
Withdrawing YBTC is a simple process. To get your BTC director back, along with any proceeds earned, you must use the protocol’s “burn” feature to destroy their YBTC tokens.
However, it is important to note that burning YBTC also requires you to burn a certain amount of UMJA tokens. This entire procedure is usually quick, often completed within an hour, although it can vary based on Bitcoin’s network block times.
The protocol imposes two types of fees: an 18% performance fee, which is taken from the YBTC APY, as well as trade entry and exit fees associated with mining and burning the YBTC tokens, according to Greenfield.
This product as a whole is suitable for BTC holders who are looking for reliable income while avoiding the risks often associated with volatile strategies.
“The BTC ecosystem is fraught with diluted APRs and APYs that are not what they appear to be,” Greenfield said. “Almost every BTC LST in crypto marks an APR with protocol points and foreign token rewards – rather than the ROI paid in BTC alone. YBTC’s Apy is 100% paid in BTC – nothing else”
