CurveLend Guide: Use iBTC as collateral to get upto 10x leverage

Collateralise iBTC on CurveLend. Learn about 10x leverage, collateral use, and risk management. Explore crvUSD yields and earn 5x iBTC Points. Optimise your bitcoin yield strategy with iBTC

Author

Mayank Sachdev
October 24, 2024

Welcome to the next level of our iBTC Odyssey! Now that you've acquired iBTC, it's time to explore how to put it to work in the DeFi ecosystem. In this guide, we'll walk you through using CurveLend to leverage your iBTC holdings, potentially amplifying your returns while managing risk.

Why Use CurveLend for iBTC?

CurveLend offers a unique opportunity for iBTC holders:

  • Ability to borrow against your iBTC or use it as collateral

  • Up to 10x leverage on your iBTC

  • Earn 5x iBTC Points

  • Access to yield-generating opportunities within the crvUSD

*As of October 24, 2024, CurveLend offers attractive terms for iBTC holders, with a competitive Borrow APY of 11% and a maximum leverage of up to 10x.

Step-by-Step Guide to Leveraging iBTC on CurveLend

Step 1: Connect Your Wallet

  1. Navigate to the CurveLend platform.

  2. Click on the "Connect Wallet" button in the top right corner.

  3. Select your preferred wallet (e.g., MetaMask) and follow the prompts to connect.

Step 2: Navigate to the iBTC Market

  1. Once connected, locate the iBTC market on the CurveLend dashboard.

  2. Click on the iBTC market to view details and options.

Step 3: Deposit iBTC as Collateral & Create Loan

  1. Enter the amount of iBTC you want to use as collateral.

  2. Review the liquidation price and other terms carefully.

  3. Click "Deposit" to add your iBTC as collateral.

Step 4: Choose Your Leverage

  1. In the iBTC market view, find the "Leverage" tab.

  2. Select your desired leverage, up to 10x (depending on market conditions).

  3. Keep in mind that while higher leverage offers greater potential returns, it also increases risk.

Step 5: Manage Your Position

  1. Monitor your position regularly in the "Manage Loan" section.

  2. Keep an eye on the health factor of your loan to avoid liquidation.

  3. Consider setting up alerts for significant price movements.

Important Considerations

  • Risk Management: Leveraging increases both potential returns and risks. Never invest more than you can afford to lose.

  • Liquidation Risk: Understand the liquidation price and have a plan to manage your position if the market moves against you.

  • Interest Rates: Be aware of the borrowing interest rate (currently 9.87% APY) and how it affects your position over time.

  • Market Volatility: Bitcoin and iBTC can be volatile. Factor this into your leverage strategy.

Conclusion

Leveraging your iBTC on CurveLend opens up new possibilities for yield generation and portfolio management. By carefully managing your position and understanding the risks involved, you can potentially enhance your returns while participating in the growing DeFi ecosystem.

Remember, this guide is just the beginning. Stay tuned for our next level, where we'll explore more advanced strategies for maximizing your iBTC yields in the DeFi space.

Happy lending, and as always, DYOR (Do Your Own Research)!

About iBTC

As a decentralized wrapped Bitcoin, iBTC leverages Discreet Log Contracts (DLCs) and Chainlink's Cross-Chain Interoperability Protocol (CCIP) to provide a theft-proof bridge to cross-chain DeFi, backed by the security of the Bitcoin network. iBTC unlocks yield for your Bitcoin in DeFi with the benefit of lower fees and merchant self-custody, empowering users to put their Bitcoin to work.

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