Earn 5x Points in the iBTC/AUSD Pool on Let's F**ing Joe (Formerly Trader Joe)
Find the pool on Avalanche
Prateek Ranka
March 05, 2025
TL;DR
The new iBTC/AUSD liquidity pool on LFJ is the perfect way to earn rewards while keeping your Bitcoin exposure.
5x points boost on iBTC deposits
AUSD is a fully backed stablecoin, giving your liquidity extra security.
It’s easy to join: Deposit iBTC + AUSD, start stacking points, and watch your rewards grow.
Bitcoin Needs Better Yield Options—This is One of Them
Bitcoin has always been about self-sovereignty and security, but earning yield on BTC has often required high risks. Centralized lending desks collapsed, bridges were hacked, and unreliable yield schemes burned users.
That’s where iBTC and AUSD come in. This new liquidity pool on Avalanche via LFJ offers Bitcoin holders a way to earn on their BTC without relying on centralized intermediaries or risky protocols.
By depositing iBTC (self-wrapped, bridgeless Bitcoin) into the iBTC/AUSD liquidity pool, you’re not just earning rewards—you’re participating in a DeFi model that’s safer, more decentralized, and built for Bitcoiners.
And with 5x points on your iBTC deposits, this is one of the best ways to make your Bitcoin work for you.
Understanding Impermanent Loss
Liquidity providers should be aware of impermanent loss, which happens when the price of iBTC or AUSD changes compared to when you deposited them. Since liquidity pools balance assets automatically, price fluctuations can lead to a loss in terms of Bitcoin value compared to simply holding. However, impermanent loss can be mitigated when trading fees and rewards outweigh the potential downside.
Let’s try to understand it by way of an example:
Let’s say you deposit 1 iBTC and 10,000 AUSD into the pool when iBTC is worth $10,000. If iBTC’s price later increases to $15,000, the automated market maker (AMM) will rebalance the pool, reducing your iBTC holdings while increasing your AUSD holdings. When you withdraw, you might receive 0.8 iBTC and 12,000 AUSD. While the total value of your holdings has increased, you would have had more BTC if you had just held onto it. This difference is impermanent loss.
What’s AUSD and Why Should I Care?
AUSD is Agora’s fully backed, USD-pegged stablecoin. Unlike some sketchy algorithmic stablecoins, AUSD is backed by real-world assets like:
✔ U.S. Treasuries (the same assets major financial institutions use for stability).
✔ Cash reserves (not a token printed out of thin air).
✔ Overnight repo agreements (short-term, low-risk lending agreements).
Stablecoins play a crucial role in DeFi by providing a safe trading and liquidity option, but not all stablecoins are created equal. AUSD’s model makes it resilient to market crashes, giving you confidence when pairing it with iBTC in this liquidity pool.
The result? A high-yield BTC strategy that doesn’t expose you to extreme volatility.
How Do I Get My 5x Points?
It’s stupidly simple:
Get iBTC – You can swap for it using a DEX aggregator like CowSwap, or directly in your wallet (e.g., Coinbase Wallet, MetaMask), which will automatically route the swap through Curve or the largest available DEX.
Get AUSD – Swap for AUSD on supported platforms.
Provide Liquidity – Head over to LFJ on Avalanche, add your iBTC + AUSD, and boom—you’re earning 5x points!
These points stack up fast and can be used for future rewards, incentives, and governance perks.
Why This Matters for Bitcoin & DeFi
Bitcoiners have been cautious about DeFi, and for good reason. Many BTC-based yield opportunities have been high-risk or poorly designed, leading to losses from hacks, insolvencies, or bad tokenomics.
This pool is different:
✅ No bridges, no centralized risk – iBTC is secured by a 2-of-2 multisig ‘lockbox’ on Layer 1 Bitcoin, eliminating bridge vulnerabilities.
✅ Stable, collateralized rewards – AUSD isn’t just another algorithmic experiment—real-world assets back it.
✅ Simple & efficient yield – You’re not locking up your BTC in a questionable scheme—just pairing it with a stable asset to generate real rewards.
This partnership between iBTC and AUSD is part of a more significant shift in BTCFi, where Bitcoin holders can finally access DeFi opportunities without sacrificing security.
How Liquidity Providers Win in the Long Run
As more BTC holders seek secure and decentralized yield options, protocols prioritizing security and real asset backing—like iBTC and AUSD—will attract more adoption. That means early liquidity providers benefit the most as trading volume grows and BTC-Fi evolves.
Why does this matter?
🔹 More adoption = more liquidity = stronger rewards over time.
🔹 Bitcoin holders want to expand into DeFi, and secure solutions like iBTC provide a bridgeless solution.
🔹 Stable liquidity pools like iBTC/AUSD help create a trusted foundation for Bitcoin yield strategies.
Final Thoughts
5x points on iBTC deposits are among the most rewarding multipliers available, and the iBTC/AUSD pool on Avalanche offers a reliable way to grow your Bitcoin holdings.
This isn’t just about earning more—it’s about being part of a stronger BTCFi ecosystem that works for BTC holders, not against them.
About iBTC
iBTC Network's decentralized wrapped Bitcoin is a safer way to access DeFi with your Bitcoin. iBTC is backed by a network of leading node operators and merchants who self-wrap BTC into vaults on Bitcoin Layer 1 to provide liquidity to the iBTC Network. The merchant's signature on the multisig vault prevents network misuse without user consent, making iBTC the most secure wrapped BTC token.
iBTC can be acquired by individual users by swapping for it on popular decentralized exchanges such as Curve, Uniswap, and Balancer. Institutional users, on the other hand, can swap into iBTC through a trusted merchant in the iBTC network or mint iBTC following KYB.
Join us as we make BitcoinFi safe again. Follow our socials and become part of the iBTC community:
Website | X (Twitter) | Telegram | Discord | Galxe
Reply