The new standard for Bitcoin's Risk-Free Rate

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Earn yield with BTC

Every financial system demands a risk-free rate to measure yield against. Traditionally, government-backed fiat currencies derived this benchmark from government bonds. Similarly, Ethereum, secured by proof-of-stake, generates its intrinsic yield through staking. Now, Bitcoin, underpinned by its blockchain, introduces a new paradigm: a risk-free rate inherent to its time-lock mechanism. This Bitcoin Risk-Free Rate marks a pivotal moment, as all financial operations involving Bitcoin - from investing and lending to borrowing and earning - must now be evaluated in relation to this benchmark.

new

Average BTC Reward Rate

0.0000

Last updated on Today
Data Source: stake.coredao.org

BTC Staked

0000

BTC

Staked BTC Value

000

M

4.1219
July 25, 2024
5000
311

Yield defined by the Bitcoin Reference Rate

Bitcoin's new era

Finance is predicated on asset appreciation and yield. Historically, Bitcoin has relied almost entirely on appreciation for its value. The new Bitcoin Risk-Free Rate introduces native-yield to Bitcoin, reflecting the value of Bitcoin’s security extended to other systems.

POWERED BY CORE

Bitcoin's first true yield

Trustless

Relies solely on the security of Bitcoin’s code. Bitcoin never leaves Layer 1, ensuring maximum security and trust.

Additional Bitcoin Utility

Bitcoin gains a base-layer yield for the first time ever.

Non-Custodial

Users don’t face slashing risk or give up custody of their private keys

Leveraging Bitcoin's Security

Staking is backed by Bitcoin's robust security applied to the Core blockchain

Sustainable Yield

Block rewards and transaction fees underpin the rate determination.

Bitcoin Risk-Free Rate will help shape the future of BTCfi

As Bitcoin finance evolves Bitcoin Risk-Free Rate becomes essential for Bitcoin finance decisions.

Watch as new products emerge, centered around this groundbreaking standard.

Get Started

Bitcoin risk-free rate provides a necessary benchmark for all Bitcoin financial participants. As new products launch, expect the risk-free rate to expand, offering even more growth and yield opportunities.Discover more and join the future of Bitcoin finance

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FAQ

01
What is the significance of yield in traditional finance (TradFi)?

The Federal Reserve (Fed) sets U.S. interest rates, with the most important being the "risk-free" rate of government bonds. This rate sets a baseline for all other financial activities, as it offers minimal risk due to its reliance on government fiat.

02
Why hasn't Bitcoin finance (BTCfi) had a "risk-free" rate?

Bitcoin cannot be printed like dollars, so any Bitcoin lent out faces the risk of not being repaid. Historically, all Bitcoin yields required taking on some level of risk.

03
How does Core's Non-Custodial BTC Staking (NCBS) change the game?

Core’s NCBS allows BTC holders to earn yield without introducing new trust assumptions. The yield from NCBS doesn’t come from lending risk but from using locked-up BTC in user-held wallets to elect validators who secure Core through Satoshi Plus consensus. Validators earn block rewards and transaction fees, which they pay back to BTC stakers.

04
How will Core's Dual Staking model boost Bitcoin yields?

Once live, Bitcoin stakers will have the opportunity to stake both Bitcoin and their CORE rewards to earn higher rates. While Bitcoin holders can continue to stake their Bitcoin tokens for the base Risk-Free Rate, holders staking CORE tokens alongside Bitcoin can earn “Dual-Staker Rates.” Furthermore, Bitcoin stakers who commit to long-term staking (duration to be determined) will receive higher rewards than those who stake for shorter periods. This development can close the economic loop between Bitcoin and Core, establishing clearer value for Bitcoin staking rewards and alignment between the two blockchains.

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