LBTC actives its yield tomorrow.
I know liquid staked tokens are a new concept for most people but hereâs something to note.
The yield LBTC generates will not come with a claim button. The rewards are kept within the token.
Which means it wonât be pegged 1:1 with BTC anymore because it will become more valuable than BTC.
For example:
Current ratio 1 LBTC = 1 BTC
Future ratio 1 LBTC = 1.01 BTC
So this means to âcash outâ on the yield is to convert your LBTC into BTC in which you will be given more BTC than you started with (original BTC + BTC from yield).
Hope this makes sense, itâs a concept that gets asked in all liquid staked tokens but with this, it can be more easily integrated in DeFi. Something @Lombard_Finance continues to push.
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