Umoja Launches 6% Yield Product for Coinbase Wrapped BTC Holders
The DeFi protocol Umoja has launched a product allowing holders of Coinbase wrapped BTC (cbBTC) to earn a 6% yield on the Base layer-2 network. The yield is generated through various exchange strategies, including covered calls and arbitrage.
Key points:
- cbBTC is an ERC20 token backed 1:1 by Bitcoin held at Coinbase.
- Umoja supports Yield Vault Tokens (YVTs), collateralized by cryptocurrencies and real-world asset tokens.
- yBTC is minted when users deposit cbBTC into the protocol.
- Investor interest in yields may increase as Bitcoin's price drops from over $100K to a low of $74.8K.
- Metaplanet has begun earning yield on Bitcoin by purchasing spot assets alongside put options.