Decentralized Finance (Defi) protocol Umoja has released a product with which Coinbase BTC (CBBTC) enables token holders to achieve a yield of 6% on Layer-2 network basis.
Umoja reaches his proceeds by using a series of centralized and decentralized exchange strategies, including covered calls and arbitration, whereby an actively bought in one location and at the same time sold for a higher price at a different location.
It is Worthing that CBBTC Opdoert a packed token and not Bitcoin (BTC) itself, it is an ERC20 token that is supported by Bitcoin held in Coinbase.
The Umoja protocol supports a number of revenue clerk (YVTs) collateral by cryptocurrencies (including real assets tokens).
One of those YvTs is YBTC, which is beaten as soon as users deposit CBBTC on the protocol.
Acquiring a yield on BTC using Defi strategies has been a controversial subject for Bitcoin -Maximalists, who are generally against the Defi sector and altcoins.
However, since BTC continues its dive from above $ 100k to the low point of 7 April of $ 74.8k, the demand for investors seems to reduce a yield at the loss of spot value.
The Japanese company Metaplanet recently started earning a yield on Bitcoin by buying spotactiva simultaneously with PUT options and then selling premium on PUT options as price efforts.
