v2: Stability Pool + Earn
The second iteration of BIMA’s borrow/lend product introduces two pivotal features—the Stability Pool and Earn—designed to optimize capital efficiency, stability, and yield opportunities for Bitcoin-b
The Stability Pool: Core Mechanism for System Health
The Stability Pool is the backbone of BIMA’s liquidation system, ensuring that under-collateralized positions are resolved seamlessly to maintain protocol stability. Depositors in the Stability Pool act as the first line of defense, earning rewards while supporting the system’s overall health.
How It Works
When a borrower’s collateralized loan falls below the required ratio, their position is liquidated, and the Stability Pool absorbs the liquidated collateral. Depositors in the Stability Pool receive:
Discounted Collateral: BTC or USBD liquidated at a favorable price.
Continuous Rewards: Depositors earn incentives for contributing to system stability.
Real-World Analogy
Think of the Stability Pool like a commercial real estate owner leveraging existing properties to expand. Borrowers use their BTC-backed USBD to access liquidity while maintaining ownership of their collateralized assets. Liquidation events redistribute this value to Stability Pool depositors at a discount, much like an investor acquiring distressed assets below market value for long-term gains.
This approach mirrors strategies adopted by institutional players like MicroStrategy, where BTC positions are leveraged to acquire more BTC-backed assets, growing overall exposure and yield over time.
Depositor Benefits
Stability Pool depositors are rewarded with discounted BTC or USBD liquidated assets.
Rewards accumulate while supporting the protocol’s health and solvency.
This creates a self-reinforcing system: depositors earn while the system remains stable.
Earn: Multi-Layered Yield Opportunities
The Earn program introduces a multitude of yield-bearing vaults, unlocking opportunities for BTC holders and USBD stakers to generate stable and sustainable yields.
How It Works
USBD → sUSBD Users stake USBD into yield-bearing vaults to receive sUSBD (staked USBD). This token represents the user’s position in the Earn program and accrues rewards over time.
Multi-Strategy Yield Vaults The Earn program brings a variety of strategies to maximize BTC capital efficiency:
Gamma-Neutral Hedging: Yield generation while minimizing volatility and directional exposure.
Cross-Chain Yield: Deploy USBD across EVM, Bitcoin L2s, Solana, and STX to aggregate returns.
Lending Markets: Earn stable yields by lending USBD to borrowers.
These strategies allow users to earn yield on their BTC holdings without liquidating assets, creating an efficient flow of capital within the BIMA ecosystem.
Liquidity Unlocks and Redemption
To ensure sustainable and predictable liquidity for sUSBD holders, the Earn program includes monthly liquidity unlocks with a structured redemption mechanism:
Monthly Unlocks: Once every month, liquidity becomes available for sUSBD redemption.
7-Day Redemption Window: Users have a 7-day window to redeem sUSBD for USBD at a 1:1 ratio.
Auto-Rollover: If sUSBD is not redeemed during the window, it automatically rolls over into the next month’s cycle to continue earning rewards.
This system balances yield optimization with liquidity management, ensuring that users can exit their positions without disrupting the broader protocol.
Why sUSBD Matters
sUSBD is the gateway to BIMA’s Earn program, offering:
Capital Productivity: USBD becomes yield-bearing without sacrificing liquidity.
Multi-Layered Yield: Users benefit from diversified strategies across BTC-backed vaults.
Predictable Liquidity: Monthly unlocks provide a clear exit path for stakers.
sUSBD creates a circular flow: users stake USBD to earn yields, while BTC collateral remains productive and accessible within the BIMA ecosystem.
Benefits of Stability Pool + Earn
System Stability:
The Stability Pool protects the protocol from insolvency by absorbing liquidations.
Depositors earn rewards while supporting system health.
Yield Optimization:
Earn combines diversified strategies to generate sustainable, risk-adjusted yields for USBD stakers.
Capital Efficiency:
BTC holders leverage their USBD to unlock liquidity and earn yield without selling collateral.
Liquidity Management:
Structured monthly unlocks ensure predictability for sUSBD holders.
Why It Matters
BIMA’s v2 introduces a robust system that combines stability, capital efficiency, and yield generation for Bitcoin-backed liquidity. By integrating the Stability Pool and Earn mechanisms, we create a sustainable ecosystem where BTC-backed USBD serves as both a stable collateral asset and a productive yield instrument.
The result is a self-reinforcing flow: Stability Pool depositors protect the protocol, sUSBD stakers generate yield, and BTC liquidity remains active across the ecosystem.
Get Started:
Contribute to the Stability Pool and earn discounted collateral.
Stake USBD to receive sUSBD and unlock multi-strategy yield opportunities.
Redeem sUSBD during monthly liquidity unlocks or continue compounding rewards.
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