Synthetix and Ren Launch Yield Farming for Bitcoin
A massive boost to Bitcoin on Ethereum.
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A collaboration between Synthetix and Ren Protocol has resulted in a new Curve Finance pool between sBTC, RenBTC, and wBTC. This pool pays liquidity providers to bootstrap Bitcoin liquidity on Ethereum.
Synthetix Incentives Galore
Synthetix and Ren Protocol are supplementing the growth of their respective BTC-based instruments by creating a Curve Finance liquidity pool. The pool will be equally weighted between sBTC, RenBTC, and wBTC.
Instead of users earning rewards through just liquidity provision fees, Synthetix and Ren are including their native tokens as a bonus for pool participants. The two projects will distribute 10,000 SNX and 25,000 REN to the pool every week.
But the incentives don’t stop here.
Since the liquidity pool is on Curve Finance, providers will be further compensated with the protocol’s upcoming native token, CRV, when it launches.
The rewards in SNX and REN will be paid out as wrapped SNX and REN from a Balancer pool set up by the two entities. This pool will further direct it’s earnings in BAL, Balancer’s governance token, to liquidity providers of the Curve pool.
This means users will have five sources of compensation: a liquidity provision fee from Curve, wrapped SNX, wrapped REN, BAL, and CRV for providing liquidity in one or all three assets in the pool.
The idea is to bootstrap liquidity for BTC on Ethereum. Once this is achieved, these tokens could get added as collateral to money markets like Aave and Compound.