BOMB BTC Yield: Rewards Explained
BOMB BTC is offered by the bomb.money DeFi (decentralized finance) protocol. The core protocol offers a Bitcoin-pegged algorithmic coin on the Binance Smart Chain. BOMB is able to follow the price of Bitcoin by incentivizing users’ behavior.
Staked Bitcoin earns double stack DeFi yields by farming the liquidity pool consisting of BOMB (bomb.money token) and BTCB (Bitcoin wrapped on Binance Smart Chain).
This allows Bitcoin stakers to receive high, DeFi-type yields, with the relative safety of a BTC + BTC peg (BOMB) pair.
Double Stack Yields
Bitcoin staked with BOMB BTC generates returns using two methods, with the same funds. We refer to this as double stack yields.
Yield Farm Rewards
With the bomb.money protocol, any providers of liquidity to the BOMB — Bitcoin pair are able to “farm” their position and receive generous rewards. The rewards earned from yield farming are routinely converted into additional BOMB and Bitcoin, to ensure exposure is always tied to the asset you staked — BITCOIN!
It is in the nature of UniSwap based Liquidity Pools to reward the providers of assets to those pools. 0.17% of every single trade between BOMB and Bitcoin goes to the liquidity providers. This happens automatically by leaving the additional trading fees in the liquidity pool. This gradually increases the contents of each share of the liquidity pool.
We refer to 1 share of the liquidity pool as ybBTC (Yield Bomb BTC).
YOUR BULLISH DEV,