AIBTC.ENA

AIBTC.ENA is a liquid staking token (LST) for Bitcoin that utilizes a basis trade strategy within the Ethena ecosystem. This innovative approach enables Bitcoin holders to earn yields from Ethena while maintaining exposure to their Bitcoin assets.

• Use Case: Earn rewards by staking BTC as collateral to mint and stake Ethena's USDe, thereby enhancing the security of the Ethena network.

• Type: Yield-bearing liquid staking token.

• Yield: Users benefit from Ethena’s staking yields and gain access to 10x SATs on borrowed stablecoins, all while keeping their Bitcoin liquid.

CommentHow It WorksCommentThe strategy involves leveraging Bitcoin as collateral to borrow stablecoins, which are then utilized to mint and stake Ethena's USDe. This process captures yields from two primary sources:

1. Ethereum Staking & Funding: Users benefit from yields generated through staking on the Ethereum network.

2. Basis Spread: Earn returns from delta hedging derivative positions.

To incentivize optimal performance and align interests, a 20% performance fee will be applied to profits generated by the AIBTC.ENA strategy.

Additional Information

• SATs Distribution: The SATs earned will be claimed by AI Protocol’s minting address on behalf of users and proportionally distributed to AIBTC.ENA holders after the Ethena SATs Campaign concludes. The final amount received will depend on the vesting schedule set by Ethena.

• 10x SATs: The 10x SATs are based on the USDe minted. Due to the lower loan-to-value (LTV) ratio when borrowing USD using Bitcoin as collateral, the SATs received may be lower.

• KYC Requirement: Users must complete KYC to stake their AIBTC on AI Protocol. However, they can purchase AIBTC.ENA on decentralized exchanges (DEXes) without this requirement.