Decentralized Finance (Defi) Protocol Umoja has released a product that allows coinbase-wrapped BTC (CBBTC) token holders to earn a 6% dividend on the layer-2 network base.
Umoja achieves its yield by utilizing a number of centralized and decentralized exchange strategies, including covered calls and arbitrage, which involves buying an asset in one place and at the same time selling it at a higher price in another place.
It is Worthing and notes that CBBTC is a wrapped token and not Bitcoin (BTC) itself, it is an ERC20 token supported 1: 1 of Bitcoin held at Coinbase.
The Umoja Protocol supports a number of dividends (YVTS), which is safety -provided by cryptocurrencies (including assets in the real world).
One of these YVTs is YBTC, which is embossed when users deposit CBBTC on the protocol.
Acquiring a dividend on BTC using defi strategies has been a controversial topic of Bitcoin -maximalists who are generally against the defi sector and Altcoins.
As BTC continues its leap from over $ 100K to April 7 of $ 74.8K, the investor’s demand to achieve a dividend to mitigate against spot value losses that appear to rise.
The Japanese company Metaplanet has recently begun to earn a dividend on Bitcoin by buying spot assets at the same time as put options and then selling prize on put options as price down.
