Acre’s 14% Bitcoin Yield Leans on Ethereum DeFi

Acre has introduced a new vault for Bitcoin yield hunters, boasting an estimated initial APY of around 14% that auto-compounds in tBTC. The CEO of Acre, Laura Wallenda, noted that achieving these yield targets relies significantly on DeFi incentives and includes a two-week redemption window designed to manage market volatility. The initial strategy is implemented in partnership with Re7 Labs, allowing users to deposit and withdraw BTC while managing risk. Yield will primarily be generated through activities involving tBTC on Ethereum, such as lending and liquidity provisioning. Although various yields might come in tokens across different chains, they will ultimately convert back to tBTC. Acre aims to sustain risk-weighted returns and differentiate itself from centralized exchanges, focusing on on-chain transparency and governance through a nine-member Security Council. The council oversees deployment policies to enhance security and transparency as Acre expands its vault capacities.

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