Pooling wBTC with DeFiZap.

Jan 22

Huge shout out to Cooper Turley from DeFi Rate for helping us with this tutorial! 💌

When it comes to leveraging DeFi protocols, it can be difficult to know where to start.

Here at DeFiZap, we aim to make it easier to access interesting opportunities in DeFi - saving you time, effort, and transaction costs.

Today, we’re happy to unveil one of our most requested Zap series yet - wBTC pooling on Uniswap.

Why Wrapped Bitcoin(wBTC)?

We created these Zaps to provide BTC liquidity on Ethereum, giving BTC users access to tools that are otherwise inaccessible while further incentivizing the usage of wBTC within DeFi platforms at large.

Due to its scarcity, we believe there are potentially lucrative returns to be made on early Uniswap liquidity provisions.

wBTC Pooling options with DeFiZap:

Just like our LINK Zaps, wBTC Zaps will consist of the following options:

ETH Bull?

Name: wBTC LLP: 100% ETH Exposure.

Description: Earn fees on wBTC Uniswap pool while retaining ~100% ETH exposure.

Theory: ETH price (measured in DAI) will increase at a faster pace than wBTC (measured in DAI). Meaning you will have to pay more BTC to get ETH.
Goal: Acquire more ETH.

BTC Bull?

Name: wBTC LLP: 100% BTC Exposure.

Description: Earn fees on wBTC Uniswap pool while retaining ~100% BTC exposure.

Theory: BTC price (measured in DAI) will increase at a faster pace than ETH (measured in DAI). Meaning you will have to pay more ETH for BTC.

Goal: Acquire more BTC.

Not sure?

Name: wBTC Unipool.

Description: Earn fees on wBTC Uniswap pool with no additional exposure.

Theory: ETH and BTC will both increase/decrease at relatively the pace pace in terms of DAI.

Goal: Get exposure to both BTC and ETH if you believe their price will remain correlated.

To get started with any of these options, simply visit our Zap Explorer and look for the wBTC Zap names described above!

How It Works.

For our wBTC LLP Zaps, we use Fulcrum to take out a 2x long position, effectively allowing you to retain exposure to the asset of your choice (in this case ETH or wBTC) while capturing fees from the wBTC pool directly.

For our Unipool Zaps, we simply divide your entry token between ETH and wBTC and enter the wBTC pool directly.

What’s Next?

Behind the scenes, we’re gearing up for the launch of AntiZaps (or UnZap) - an intuitive way to exit your positions and withdraw liquidity from Uniswap in a single transaction and into a single token of your choosing.

Our ultimate goal is to provide users with easy entry and exits to some of DeFi’s most popular products, and we believe ‘Zapping out’ is a huge step in that direction.

Interested in pooling with Uniswap but worried about how to track your returns for tax purposes? We’ve got you covered.

With DeFiZap you’ll be able to enter with one token (say ETH or soon DAI) and exit with that same token, easily allowing you to track your profits.

To be one of the first to hear about these updates and more, follow us on Twitter!