BTC Looping Strategy (Low-risk)
Risk Category: Low
Last updated
Risk Category: Low
Last updated
Maximum fund size: No limit Asset Token: $BTCB ShareToken: $TeaBTCBmax $TeaBTCBmax Token contract Address: 0x7130d2A12B9BCbFAe4f2634d864A1Ee1Ce3Ead9c Locked Period: Every day 13:00 UTC+8 – 15:00 UTC+8 Note: Deposit/withdrawal requests may take up to 2 working days in the UTC+8 timezone to process and enter into the next round.
This strategy generally performs well in a bull market.
The BTC Looping Strategy supplies $BTCB on Avalon Lab Protocol to borrow $solvBTC.bbn for depositing into Pendle’s solvBTC.bbn PT pool for earning fixed yield and rewards. The strategy generates profit when the combined earnings from Pendle's pool (PT yield plus rewards) are greater than the cost of borrowing.
To sustain profitability, the strategy closely monitors and maintains the relationship between the Loan-to-Value ratio of $BTCb/$solvBTC.bbn PT and the current rates in Pendle's solvBTC.bbn PT pool.
Please see our guide on how to deposit and withdraw funds.
If you request to deposit $BTCB during Round X, your funds will enter the strategy in Round X+1, and you can claim $TeaBTCBmax in Round X+1 (or later).
The earliest you can request to redeem $TeaBTCBmax into $BTCB will be in Round X+1, for the funds to be removed from the strategy in Round X+2. You will be able to claim the corresponding $BTCB to your wallet in Round X+2.
If you do not redeem $TeaBTCBmax into $BTCB, your funds will automatically continue into the following Rounds.
Teahouse will assess Platform Fees, Management Fees, and Performance Fees for this strategy.
Entry fee: None / Exit fee: 0.2%
E.g., I initially invested 1,000 $USDC, and upon exit, I have 1,500 $USDC. I will have paid 1,000 * 0.1% = 1 $USDC at entry and 1,500 * 0.2% = 3 $USDC at exit, for a total platform fee of 4 $USDC.
1.7% (Annualized) divide by 52 weeks to get weekly fees charged: 0.03269%
E.g., I invested 1,000 $USDC, and 1 week later, the $TeaBTCBmax token value increased to 150% of the original. When exiting after a week, I will incur 1.7% * 1,500 $USDC * 1/52 = 0.49038461 $USDC. Alternatively, if it takes a full year to reach 150%, then I will incur 1.7% * 1,500 $USDC = 25.5 $USDC.
10% of profits made.
Your friendly Teahouse Hosts would like to remind you that nothing contained on this website should be construed as financial advice. Teahouse makes no guarantees, express or implied. Please note the high-volatility nature of cryptocurrencies and DYOR. Be responsible for your actions and beware of scams.
