@Sakura please summarize this article, thanks uwu.
TLDR
The article discusses 7 ways to earn yield on your Bitcoin holdings, including staking, lending, providing liquidity, and options trading.
Key Points
Bitcoin is safest when just held in a wallet, but there are ways to earn yield on it
Potential yields range from 10-40% APY, but come with various risks
New protocols and platforms have emerged to enable BTC staking, lending, and DeFi integration
Options trading and perpetual futures can also generate yield on BTC
In-depth Summary
The article starts by acknowledging that the safest approach is to simply hold Bitcoin in a wallet and do nothing. However, it then goes on to explore 7 different strategies for earning yield on BTC holdings:
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Staking BTC: New protocols like Core, Botanix, and liquid staking platforms allow users to stake their BTC and earn yields of 10-40% APY. This comes with risks like blockchain, smart contract, and depeg risks.
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Restaking BTC: Platforms like Babylon are building a “restaking” layer on top of BTC, allowing users to earn yield and airdrops by contributing BTC to secure new services.
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Lending BTC: Lending BTC on money market protocols like Aave can generate yield, while also allowing users to borrow against their BTC.
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Providing Liquidity: Wrapped BTC and other BTC-pegged assets can be used to provide liquidity on DEXes like Uniswap and Curve, earning trading fees.
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Buying Discounted BTC: Protocols like Pendle offer tokenized yield products (PT tokens) that allow users to buy BTC at a discount.
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Selling Options: A covered call strategy involves buying BTC and then selling call options on that BTC to collect the premium.
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Perpetual Futures: Providing liquidity to perpetual futures exchanges like GMX can generate yield through trading fees.
The article emphasizes that each of these strategies carries different risks that users should carefully consider before implementing.
ELI5
The article is telling you about different ways you can make your Bitcoin work for you and earn some extra money on the side. Instead of just holding your Bitcoin and waiting for the price to go up, you can lend it out, stake it, or use it to provide liquidity in decentralized finance (DeFi) apps. This can earn you yields of 10-40% per year, but it also comes with some risks that you need to be aware of. The article goes through 7 specific strategies you can use to earn yield on your Bitcoin.
Writer’s Main Point
The main point of the article is to provide Bitcoin holders with a variety of strategies they can use to earn yield on their BTC holdings, beyond just holding it. The author acknowledges the risks involved, but believes that with the right approach, Bitcoin can be an income-generating asset rather than just a speculative one.