BTC Single Stake is Live: What are the Risks?

We have done everything possible to eliminate potential risks to keep your staked BTC as safe as possible.

Security Measures

• Secure login with multi factor authentication, powered by Auth0
• BTC transactions are directly deposited to secure wallets. Hot wallets are only involved temporarily to move BTC from BTC Mainnet to our Binance Smart Chain DeFi project once daily
• Withdrawals require human approval

Yield Farms

We are able to offer such high yields on your Bitcoin deposits due to our unique DeFi protocol bomb.money. BOMB is an algorithmic stablecoin which is pegged to the price of Bitcoin. Our primary yield earning farm is a liquidity pool farm for the tokens BOMB and BTCB (BTC Wrapped on BSC).

Our bomb.money protocol has been audited by two firms. The code base has been battle tested with over a billion dollars locked, between the different protocols all using the same core code base.

Investment Risks

As with any investment, there are potential risks involved which could cause a loss in the investment. Some of these risks include:

• Bitcoin price dropping — Our ybBTC (Yield Bomb BTC) largely follows the price of Bitcoin, so any drop in the price of Bitcoin will directly effect your investment
• BOMB price dropping — ybBTC consists of 50% BTC and 50% BOMB (bomb.money token). BOMB has been designed to follow the price of BTC very closely, which greatly reduces this risk. There is still a possibility for the price of BOMB to vary greatly from the price of BTC.

Impermanent Loss

To learn what impermanent loss is, please refer to this Binance article: https://academy.binance.com/en/articles/impermanent-loss-explained

ybBTC is a representation of liquidity pool tokens which utilize yield farms on the BOMB.money protocol. While impermanent loss is something that should be considered with most liquidity pair positions, it is not as relevant in the case of ybBTC. This is because BOMB is pegged to the price of Bitcoin, and the yield earning pair being farmed is a combination of BOMB and Bitcoin. When Bitcoin goes up, BOMB naturally moves up with it, as both assets within a liquidity pair are always equal value.

The only way for the ratio between Bitcoin and BOMB can change, is trades occurring against the BOMB and Bitcoin pair. The bomb.money protocol has many ways to keep the price of BOMB as close to BTC as possible.

YOUR BULLISH DEV,

AARON