Bitcoin, the world’s hardest asset, remains stable and strong as the best store of value in the cryptocurrency space. While Bitcoin advocates remain cautious around new trends, a recent increase in wBTC (wrapped Bitcoin) shows that a growing number of long term supporters is looking at DeFi to profit from their holdings.
In the past month, a record $600 million worth of tokenized Bitcoins have been minted, ready to empower decentralized finance.
An interesting development in this space is bringing an opportunity to pair wBTC with a deflationary token and generate profits from the volatility between Bitcoin and the Altcoin markets.
A Better Option for Bitcoin 💰
Inflationary mining tokens have been dominant in this space but do not present a great match for BTC. Most of the times, pairing wBTC with an inflationary token ends poorly because hyperinflation drags down both pairs and the yield received does not cover the losses.
CORE changed all that. By creating a deflationary farming process the risk of hyperinflation is zero. Making CORE a superior pair for yield farming than any other inflationary tokens on the market.
The next Liquidity Generation Event will allow participants to pair wBTC with the deflationary powerhouse which CORE is. Through this event Bitcoin holders have the possibility to generate yield from DeFi without having to expose their Bitcoin to hyperinflationary mining mechanisms.
The new CORE/wBTC pool gives our community a new tool to benefit from all Bitcoin price movements against CORE and Ethereum. The increase in arbitrage opportunity will also attract new traders and volume to the ecosystem.
Formation of a Secondary Market 🔖
The statement that your initial investment is lost forever due to liquidity being locked is misleading. While you can not redeem the underlying assets of your LP tokens, there is a secondary market for token holders to exchange their LP tokens into wBTC, Ethereum or other coins. Giving flexibility to our LP token holders while keeping the liquidity of the pool itself locked.
LGE participants received LP tokens which experienced a price increase of up to 1400% during the past 2 weeks. The secondary market allowed its LGE contributors to take profit, retrieve their initial investment and continue exposing their portfolio to volume focused rewards with their remaining LPs.
While past performances are no guarantee of future results, it is interesting to observe how a secondary market for the first LP tokens derived.
Growth of an Ecosystem 🌱
Users of the ecosystem are able to benefit from staked LP tokens earning yield through the FoT (Fee on Transfer) mechanism. The number of liquidity pools as well as the trading opportunities are expanding, fortifying LP tokens and its yield.
A flourishing secondary LP token market is creating new ways of taking profit from LP token ownership other than farming yield.
Liquidity Generation Events are designed to create positive market pressure for CORE and its LP tokens. The upcoming vaults pay out profits in CORE, collectively creating a stimulating environment. An increase in the price of CORE benefits LP token holders, since their mining rewards yield CORE.