Before we get started, this is not a recommendation or endorsement to buy any token(s) mentioned.
This week, we cover a newly launched Bitcoin LRT called eBTC by ether.fi, including how to earn fixed yield with eBTC on Pendle.
A few weeks ago, we covered swBTC by Swell which has continued to grow to $31M in deposits. Now having launched in mid-August, eBTC just eclipsed swBTC in liquidity with over $36.8M deposited, making it the second largest Bitcoin LRT on the market, behind SolvBTC.BBN by Solv Finance.
First off, what’s a Bitcoin LRT? eBTC is designed to provide ether.fi users with easy onboarding to restaking BTC on restaking platforms such as Symbiotic, Karak,, and very soon EigenLayer as well. With expectations of EigenLayer accepting wBTC, tBTC and other forms of tokenized BTC in the near future, BTC will be another prominent cryptoasset for restaking. A Bitcoin LRT such as eBTC, will provide the same benefits that ETH LRT holders enjoy: maintaining liquidity, earning passive yield and points, not having to track when restaking deposit caps get lifted, and being able to utilize liquidity all across DeFi.
For now, eBTC deposit options include wBTC and tBTC. These cryptoassets will be directly restaked on Symbiotic, Karak, and eventually EigenLayer, each time the deposit caps are raised.
Another key benefit for eBTC holders is access to multiple point programs: Symbiotic, ether.fi, and Veda points, and eventually Karak and EigenLayer points soon. As of this post, eBTC holders are earning:
- 3x ether.fi points
- 1x Symbiotic points
- 3x Veda points
- 2x Karak points
Today, I’ll cover how I can deposit into the liquid restaking token eBTC and earn 4.6% fixed APY through December 25, 2024!
How to Restake BTC with eBTC and Lend for 4.6% APY on Pendle
Before we get started, please be aware of these risks.
- Smart contract risk in any related protocols including ether.fi, Symbiotic, Karak, EigenLayer, and Pendle
- Front-end spoof attack on any app frontend
- Withdrawals require up to 7 days to redeem eBTC
- An economic design exploit
- Colluding signers on any multisig
- Systemic risk across DeFi
Here’s how I get started!
- I connect my Ethereum Mainnet wallet to the ether.fi app here, choose whether to deposit wBTC or tBTC, specify how much, and follow the prompts to Approve and Deposit (2 transactions). If I stick with just eBTC, I earn all points with ether.fi, Symbiotic, Veda, and Karak. However, continue to the next step if you’re keen to learn how I can earn fixed yield with eBTC and forego the points.
- So here, I can go to the Pendle PT-eBTC market expiring December 25, 2024 here, and specify depositing eBTC, how much, and follow the prompts to Approve eBTC and Deposit to lock in the fixed 4.6% APY (or whatever the rate has changed to following this post).
That’s it! My PT-eBTC can be redeemed before the maturity date on Pendle, but to capture maximum yield, I’ll wait until December. For those simply holding eBTC, they earn with the 4 different points programs supporting eBTC.
Follow me @DeFi_Dad on Twitter and subscribe to my YouTube channel and The Edge Podcast at defidad.com. If you’re a crypto builder raising capital, my DMs are open on Twitter.
Disclosure: DeFi Dad and 4RC were investors in the seed round for ether.fi.
DeFi Dad is one of the earliest power users of DeFi, having worked with early Ethereum startups going back to 2018, including Zapper.
