Binance, the renowned crypto exchange, has unveiled BTC Yield. BTC Yield is a unique product working under Binance Earn to enable likely weekly rewards for long-term $BTC holders. As per Binance’s official press release, the offering delivers an opportunity to make $BTC-denominated earnings without active derivative trading. The initiative aims to transform option premiums into notable returns parallel to maintaining Bitcoin-related exposure via a unique asset, $BTCY.
Binance BTC Yield Rewards Long-Term Bitcoin Holders with $BTCY
Binance’s launch of BTC Yield focuses on providing long-term Bitcoin ($BTC) holders with unique earning opportunities. Apart from the rollout, the platform has also planned a limited-time promotional campaign. The respective campaign features a reward pool that contains 100,000 $USDC to benefit qualified participants. Consumers subscribe to this product by committing their $BTC holdings. Then, these $BTC coins are transformed into $BTCY, which is a platform-based asset denoting the strategy participation.
Additionally, $BTCY cannot be transacted outside the Binance network because it is not categorized as an on-chain token. Rather, it highlights the covered-call strategy’s value while permitting participants to maintain exposure to $BTC in Bitcoin-denominated terms. The yield strategy takes into account the systematic sell-off of $BTC call options. With the collection of option premiums, Binance endeavors to create returns for distribution among participants.
Weekly realized premiums may be paid in a couple of forms. One of its portions is automatically transacted as Bitcoin ($BTC) to the Spot Accounts of the users every week. However, the other portion remains retained in the strategy, raising the $BTC-denominated value that each $BTCY holding represents over time. Many features of the exclusive product take into account professional management, open-ended structure, flexible redemption solutions, and weekly Bitcoin distributions.
Celebrating Rollout with 100,000 $USDC Reward Pool
According to Binance, consumers can select between Scheduled Redemption and Fast Redemption, with the former taking into account a bi-weekly settlement plan. Hence, the product is anticipated to streamline access to an institutional-level options strategy to facilitate retail users. Additionally, to celebrate the rollout, Binance Earn’s campaign, including 100,000 $USDC in rewards, will target qualified consumers maintaining 0.5 $BTCY in average daily balance between the 7th and 21st of July. Users can leverage rewards in the form of Discount Buy positions in their Earn Accounts.
