Earn Fixed Yield on siBTC using Spectra’s Yield Tokenization

Yield Strategies with siBTC on Spectra

Author

Prateek Ranka
April 09, 2025

The iBTC Network brings bridgeless Bitcoin DeFi with siBTC—iBTC staked via Symbiotic—launching on Spectra. 

Spectra’s yield tokenization platform splits siBTC into Principal Tokens (PTs) and Yield Tokens (YTs), enabling strategies for fixed returns, variable yield exposure, or passive income. Enhanced by points from iBTC, Symbiotic, and Mellow, this pool provides another way to put your Bitcoin to work.

At a Glance:

  • Yield Trading: Fixed-rate PTs or YTs with up to 75x points exposure.

  • Points: Up to 12x iBTC points for the 30 days of the pool, plus Symbiotic and Mellow rewards.

  • Liquidity Provision: 2%+ APY from fees, 10%+ APY with points incentives.

  • Coming Soon: Looping strategies using Morpho lending pools to scale returns.

Deposit siBTC or supported assets (iBTC, ETH, wETH, USDC, GHO, USR) directly into Spectra’s pool to access these options—no complex setup required.

How Spectra Tokenizes Yield

Spectra functions like a swap platform, but instead of trading tokens, it exchanges yield exposure. When you deposit siBTC (or a supported asset), Spectra creates two distinct instruments:

  • Principal Tokens (PTs): Fixed-rate assets, such as PT-siBTC, for predictable returns.

  • Yield Tokens (YTs): Variable-rate assets, like YT-siBTC, for yield and points upside.

Think of PTs as a way to lock in steady Bitcoin yield and YTs as a tool to amplify rewards. With iBTC’s points program (10,000 points/day per iBTC held) incentivizing the pool, these tokens offer different yield exposures.

Understanding siBTC: Bridgeless Staked Bitcoin

siBTC emerges from depositing iBTC in Mellow Finance vaults, creating a Liquid Restaking Token (LRT) that combines yield with utility. It strengthens iBTC’s ecosystem while delivering rewards across multiple layers:

  • Network Support: Staked will siBTC secure iBTC’s Attestor Network, validating BTC deposits with decentralized nodes.

  • Collateral Use: In the near future, use siBTC to secure networks on Symbiotic and earn additional payouts.

  • Yield Generation: Use siBTC in DeFi to generate additional yield on staked iBTC (e.g. tap into Spectra’s yield strategies).

Yield Options with siBTC on Spectra

Spectra’s siBTC pool supports three strategies today, with a fourth in development:

PT-siBTC: Fixed Returns

  • How It Works: Buy PT-siBTC at a discount (e.g., ~$0.95), redeem 1:1 at maturity.

  • Returns: Fixed APR (Check the Spectra app for the latest rates), set at purchase.

  • Rewards: The PT token has an inherent yield.

  • Use Case: Steady Bitcoin returns without rate fluctuations.

YT-siBTC: Variable Yield

  • How It Works: Purchase YT-siBTC for up to 75x exposure to siBTC’s yield and points.

  • Returns: Variable; potential exceeds 10% APY historically.

  • Rewards: 6x iBTC points (9x iBTC points booster for first 30 days!) plus Symbiotic and Mellow points.

  • Use Case: Exposure to rewards and yield upside.

Liquidity Provision: Passive Income

  • How It Works: Add to the PT-siBTC/siBTC pool ($5M capacity), earning 20% of 0.1% swap fees.

  • Returns: PT Fixed Rate + LP Fees (screenshot below shows APY as of April 9, 2025)

  • Rewards: 8x iBTC points (12x iBTC points booster for first 30 days!)

  • Use Case: Balanced income while supporting liquidity.

Coming Soon: Yield Looping on Morpho

  • How It Works: Use PT-siBTC as Morpho collateral, borrow siBTC (up to 3% rates), reinvest, and repeat.

  • Returns: Up to 3.24% net yield.

  • Use Case: Scaling returns with managed leverage.

Details are forthcoming.

Risks to Consider

These strategies come with factors to monitor:

  • YT Value Decay: YT-siBTC loses value as maturity nears, requiring active oversight.

  • Yield Variability: LP fees and PT fixed rate shift with pool activity.

  • Contract Risk: Audited contracts reduce issues, but DeFi carries inherent uncertainties—diversify to manage exposure.

Adjust allocations and use Spectra’s tools to stay aligned with your risk profile.

siBTC and Spectra: Bitcoin Yield

siBTC on Spectra turns Bitcoin into a yield-generating asset with multiple strategies: fixed rates for stability, variable yield for growth, or passive income with rewards. Built on iBTC’s bridgeless technology and Spectra’s tokenization enhance returns today. Start with siBTC or jump straight into the pool.

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