What are the main ways to generate returns when holding Bitcoin assets? Currently, there are four main types: 1️⃣ Lending platforms: Returns come from interest payments made by borrowers. 2️⃣ DeFi lending: Similar to centralized lending platforms, but with a decentralized operation. 3️⃣ Bitcoin wrapping/cross-chain bridges: Introducing Bitcoin into ecosystems across different blockchains, with returns from cross-chain DeFi market making/staking fees. 4️⃣ Exchange-traded funds (ETFs): Introducing Bitcoin into the traditional stock market, with returns from net asset value growth and dividends. However, each of these return methods has its own problems. Centralized lending: Requires fund custody and transfer, facing platform collapse and borrower defaults. On-chain lending: These systems introduce liquidation mechanisms, collateral volatility, and dependence on borrowers, posing risks such as smart contract vulnerabilities and liquidation. Blocked Bitcoin or bridge-based systems: Have issues with cross-chain bridge security, contract risks, and de-encapsulation delays. ETFs: ETFs deprive users of direct ownership of Bitcoin. Currently, we see Goat Network's Safebox exploring a new path. @GOATRollup Safebox is the only financial product that combines custody guarantees, zero borrower risk exposure, and BTC-denominated returns. Where does Safebox's return come from? It actually comes from Goat Network's transaction fees, MEV, and sorter rewards. Safebox's annualized return is between 1.5% and 2%, but this is a native BTC annualized return, and it's risk-free. Goat Network is encapsulating the value captured by its network into a BTC financial product; this approach is quite ingenious. This product is currently in beta testing; we can provide a detailed review later.
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GOAT Network
@GOATRollup
12-22
How does Safebox Compare to Other Yield Options?
Versus doing nothing: Idle BTC earns 0%. Safebox adds incremental, BTC-denominated return without changing your custody model.
Versus centralized lending or earn programs: These require custody transfer and expose you to borrower


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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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