Fun

Yield Farming Pool Concept May Solidify Ethereum’s Role as BTC’s Main Sidechain

News Feed - 2020-06-27 06:06:16

Yield Farming Pool Concept May Solidify Ethereum"s Role as BTC"s Main Sidechain


Decentralized finance (defi) applications on the Ethereum chain have been growing wildly during the last two years. Now a number of synthetic versions of bitcoin, that leverage the Ethereum chain, has outpaced offchain solutions like Blockstream’s Liquid and the Lightning Network.


Just recently, the platform Synthetix revealed a partnership with Bitgo and the Ren Project in order to create incentivized bitcoin liquidity. Now with a massive yield farming pool, tokens like sBTC, renBTC, and WBTC could easily eclipse the alternative offchain competitors.


At the end of May, news.Bitcoin.com reported on the fact that despite a number of ‘trust model’ debates on Twitter, Ethereum is the Bitcoin (BTC) network’s largest sidechain by total value locked (TVL) by a long shot. Stats stemming from the Lightning Network (LN) shows that the LN TVL on June 26, 2020, is $8.9 million. The data from Liquid.net indicates that there is 2,160 BTC or $19.7M for Blockstream’s Liquid TVL.






Now stats from the Ethereum chain blows those two statistics away, as there is over 28,000 BTC locked into the Synthetix. There is a total of $263 million TVL locked into Synthetix at press time. Additionally, data from Curve.fi shows that renBTC has been picking up significant trade volume since it’s inception.


The project WBTC, backed by Bitgo has a massive $66.9 million TVL, with 7,600 BTC locked into the defi project’s contract. Statistics from sBTC markets also show exponential growth over time. Then on June 18, 2020, the Ren Project’s Taiyang Zhang announced the yield farming pool partnership.






“This pool consists of three BTC ERC20 variants; renBTC, WBTC, sBTC. Our goal is to create the most liquid Ethereum based BTC pool available to offer traders access to the lowest slippage for trades between sBTC, renBTC, and WBTC,” Zhang wrote. The Ren Project representative also stated:In addition to the normal yield produced by Curve Pool’s trading fees, this pool includes an attractive basket of tokens for liquidity providers: SNX, REN, CRV, and BAL. To capture all of the incentives available, liquidity providers will need to contribute sBTC, renBTC, and/or WBTC to the BTC Curve liquidity pool.




Zhang also said that behind the scenes, “Synthetix and Ren have created a Balancer pool for SNX and REN where LP Rewards are distributed in the form of BPT (wrapped SNX and REN).” The Ren Project rep said that the team is “thrilled” with the latest partnership and the team “looks forward to partaking in the early stages of defi yield farming with Curve and Synthetix.”The yield farming pool.


Despite the massive shift to the Ethereum chain with three very popular synthetic BTC tokens, both networks have been suffering from higher network fees. Not only are defi projects that offer synthetic BTC tokens being used far more often, but stablecoins on Ethereum are getting a large share of use as well.


News.Bitcoin.com just reported on Ehereum fees rising above BTC fees for a short period and with the combined recent use of defi and stablecoin tokens, ETH fees have surged to a two-year high. According to Billfodl fee stats, the BTC “fee to have your transaction mined on the next block (10 minutes)” is $0.78 at press time. Data from Bitinfocharts.com indicates that ETH fees on June 25, 2020, were $0.66 per transaction.


If the yield farming pool offering from Synthetix, Bitgo, and the Ren Project grows popular it will affect network fees going forward. But also pose a threat to BTC offchain competitors.


What do you think about the pool being offered by Synthetix, Bitgo, and the Ren Project? Let us know in the comments section below.Speculation Rife as User Pays a Second $2.6 Million Fee in Ether TransactionALTCOINS | Jun 11, 2020Nightmare Come True: User Pays $2.6 Million in Transaction Fees to Send $134 of EtherALTCOINS | Jun 10, 2020Tags in this storyBitcoin, Bitcoin (BTC), BitGo, Blockstream, Curve.fi, De Fi Pulse, defi, ERC20 variants, ERC20s, ETH, ETH fees, Ethereum, Gas, LBTC, lightning network, Liquid, Liquidity, Liquidity Pool, Ren Project, SBTC, Synthetic BTC, Synthetix, Taiyang Zhang, TVL, WBTC, yield farming pool


Image Credits: Shutterstock, Pixabay, Wiki Commons, De Fi Pulse, Liquid.net, Curve.fiSpot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimer Show comments

News Feed

Bitcoin could top $100K but only if ‘high-yield rate’ falls below 7% — Analyst
Ciaran Lyons2 hours agoBitcoin could top $100K but only if ‘high-yield rate’ falls below 7% — AnalystBitcoin needs the high yield rate to fall as low as 6% to reach a “sustainable all-time high,” says crypto an
TRON, Stellar Join Mousebelt’s Blockchain Education Alliance to Train Student Developers
Crypto firms need young developers, university students need jobs and a new alliance of blockchain educators wants to give both a hand. The Blockchain Education Alliance will addres
Japan's Sony Bank tests yen-backed stablecoin for gaming and sports IP payments
Savannah Fortis24 minutes agoJapan"s Sony Bank tests yen-backed stablecoin for gaming and sports IP paymentsSony Bank says it is experimenting with the possibility of issuing its own yen-backed stablecoin as a form of pa
Brayden Lindrea6 hours agoCrypto exchange Upbit stems fake APT token flood, resumes servicesThe newly created fake APT token called “ClaimAPTGift.com” made its way to 400,000 Aptos wallets, which was mistakenly recog
GameFi ecosystem makes a comeback amid surging crypto prices
Zhiyuan Sun5 hours agoGameFi ecosystem makes a comeback amid surging crypto pricesThe number of daily active wallets engaging in GameFi has doubled over the past year.820 Total views7 Total sharesListen to article 0:00Ne
Crypto Biz: Tokenization spikes, SEC delays Bitcoin ETF options, and more
Ana Paula Pereira3 hours agoCrypto Biz: Tokenization spikes, SEC delays Bitcoin ETF options, and moreThis week’s Crypto Biz explores the rise of tokenization markets, PayPal’s stablecoin, SushiSwap’s move to a “L
Over 2,300 Cardano Smart Contracts Are Waiting in Timelock, ADA Price Slides 20% Over 2 Weeks
Over 2,300 Cardano Smart Contracts Are Waiting in Timelock, ADA Price Slides 20% Over 2 Weeks Following the successful Alonzo hard fork, the Cardano network now has a large swathe
Chimeras Play-to-Earn Metaverse Completes Successful Funding Round
Chimeras Play-to-Earn Metaverse Completes Successful Funding Round press release PRESS RELEASE. Chimeras successfully raised over $2 million in its latest fundraising round, which w
SEC seeks $5.3B judgment against Terraform Labs and Do Kwon
Turner Wright2 hours agoSEC seeks $5.3B judgment against Terraform Labs and Do KwonAfter a jury found Terraform Labs and Do Kwon liable for fraud in its case with the SEC, the commission filed a motion requesting $5.3 bi
Myria Has Announced Free-to-Claim Alliance Sigil NFT for All New and Existing Community Members
Myria Has Announced Free-to-Claim Alliance Sigil NFT for All New and Existing Community Members press release PRESS RELEASE.June 8, 2022:Myria Studios, the blockchain gaming divisio
Concerns mount over Ethena USDe’s promise of 27% yield following mainnet launch
Zoltan Vardai15 hours agoConcerns mount over Ethena USDe’s promise of 27% yield following mainnet launchThe attractive yield opportunity is causing widespread concern in the crypto community.2889 Total views9 Total sha
Governments and Enterprises Can’t Get Enough of Blockchain – The Gateway to Bitcoin
Governments and Enterprises Can’t Get Enough of Blockchain – The Gateway to Bitcoin Governments have long been wary of Bitcoin, while expressing admiration for its innovative