@Bedrock
brBTC's single yield number hides four separate custodian risks
bridged some WBTC into brBTC last week. the dashboard showed one clean number. one APY. one TVL. looked complete.
then i started pulling the actual composition. brBTC holds WBTC, FBTC, BTCB, and cbBTC — four different wrapped BTC assets, four different custodians, four completely separate failure modes. BitGo, coinbase, BNB bridge, and FBTC's issuer each carry independent redemption mechanics. none of that separation is visible in the yield figure you see. 🔎
the diversification across babylon, kernel, symbiotic is genuinely impressive. routing six protocols simultaneously is real infrastructure. i'm not dismissing that.
but DeFi summer 2020 taught me the rate isn't the risk. the mechanism behind the rate is. and brBTC's mechanism blends four custodial risks into one number without labeling the composition.
there is a version of this where i'm wrong. if bedrock publishes real-time custodian allocation breakdowns, the opacity disappears and diversification becomes the strength it's marketed as.
they haven't published that breakdown. which means BTCFi 2.0's flagship product is asking holders to trust unified yield on silently fragmented collateral.