【Why is Yield Vault the Lifeline for Bedrock?】
From the income data shown by DeFiLlama, it's surprising to find that Bedrock
@Bedrock generated only about $160,000 in revenue in a year.
uniBTC (
$BTC ), as a core product of Bedrock, was primarily designed to rely on airdrops to generate yield for users, such as its own $BR airdrop and the Babylon $BABY airdrop. However, in reality, uniBTC itself only has redemption fees to generate income for the protocol.
It can be understood that products like uniBTC and brBTC, which depend on external airdrop yields, lack the ability to generate revenue on their own.
Moreover, the only source of income for these two products is the redemption fees paid by users when they exit, meaning this will represent a one-time income for the protocol.
In contrast, the design of Bedrock 2.0 has the potential to create its own revenue, such as through Yield Vault, which extracts fixed interest rates of 3-5% from institutional lenders. After deducting the interest allocated to Cap Protocol cUSD holders, the accumulated annual income will far exceed the current income of uniBTC.
If we estimate based on the current scale of Bedrock's deployment and borrowing on Cap, with uniBTC's total value around $150M, the expected borrowing scale is about 1/3 (50M). Taking the median interest rate of 4% into account, it could generate approximately $2M in interest income per year.
After deducting the allocations related to Cap Protocol, we can expect about 40-60% to reach Bedrock Yield Vault, resulting in actual income of around $600K-$900K.
However, based on the design inertia of vault strategies, the income will primarily flow to the fund providers, which are the uniBTC holders. The deployers of the vault strategies will extract fixed-rate performance fees, management fees, and redemption fees, so the final income distribution will still require the complete announcement of Yield Vault's information to estimate.
Regardless, the value that Yield Vault can create will certainly be significantly greater than the old mechanism of uniBTC. So, do you think the protocol can effectively empower $BR once it has capital?
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● The above content does not constitute investment advice (NFA). Users should operate based on their own risk tolerance, DYOR, and participate cautiously in the investment market.
● Attached image sourced from DeFiLlama
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