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BTC Yield Fund
Let us tend to your crops, while you sit back and enjoy the yield settled in BTC.
Discuss in #yield-fund​
The goal of the BTC Yield Fund is to generate more Bitcoin.
The BTC Yield Fund intelligently analyzes the plethora of DeFi Yield Farms that exist in crypto today and intelligently allocates across them to mitigate risk while taking full advantage of the interest payments they generate.
That can be done by going into specific strategies that generate BTC, like staking it somewhere, or by putting up BTC as collateral and borrowing another token to do yield farming with.
Then, once we have made profits, roll them back into BTC and repeat the cycle.

Price Tied To Bitcoin

The price of SWBYF is tied to the price of Bitcoin. This means that if the price of bitcoins doubles, then the SWBYF price will also double plus the yield it generates.
The downside is that if the price of bitcoin goes down, then so does the price of the SWBYF, but it will still perform better than spot bitcoin as it generates yield on top.

Buy this strategy

SW DAO | Crypto Robo Advisor | DeFi Strategy
SW DAO

Risk Management

In order to spread protocol risk, $SWBYF allocates a maximum of 25% to a single DeFi protocol.
This fund commits to having a maximum directional market exposure of 25% but targets zero market exposure.
All protocols that $SWBYF is providing liquidity for are investigated and code-reviewed by a team of DeFi developers and quantitative analysts.
When available, protocol insurance will be purchased from DeFi insurance providers Nexus Mutual and InsurAce.

Live Performance

Date
Monthly Return
May 2022 (Inception)
tbd

Historical Performance

How does this work for me as a user?

SW BTC Yield Fund functions in a manner similar to a traditional Exchange Traded Fund (ETF).
  1. 1.
    Users purchase the SWBYF token on the SW DAO platform
  2. 2.
    Funds received from purchases of the token are then placed into an aggregated pool of capital controlled by SW DAO
  3. 3.
    The pool of capital is then allocated across various yield farms by our team who are informed by our AI systems
  4. 4.
    The value of the SWBYF token then increases/decreases based on the performance of the underlying assets held and yield payments received
Since all assets are held in self-custody by the user, there is no potential for SW DAO to "rug pull" the collateral that you have allocated into the SWBYF asset pool.

What is Yield Farming?

Yield farming is the lending or staking of a cryptocurrency or pair of cryptocurrencies in exchange for interest (yield). Users loan their capital by placing it into a pool of liquidity and are rewarded with interest payments. Most often these interest payments come in the form of the native token for that project. Yield Farming is most popular on decentralized exchanges to organically increase the liquidity pool size, allowing for larger asset exchanges to occur on the platform with less slippage. Some yield farms boast incredibly high returns (some as high as 40,000% per year after compounding), but with such high returns comes attached risk, and users should tread carefully.

What are the risks involved in Yield Farming?

Yield Farming just like any other financial product on the market incurs risk. When you see a high yield (typically 3 figures or higher) there is likely a greater chance that one of the many risks below can occur.
  • Impermanent Loss (IL) - Impermanent loss occurs when you stake a pair of tokens that change their market value at different rates. If you loan out both a stablecoin (that seeks to remain unchanged in price over any time horizon) and a protocol token like ETH (which can experience large price changes over time), you are highly likely to experience IL when withdrawing your token pair from the pool. In some cases such as during an ETH bull run that sees the price of Ethereum increase 300% in a few months, you may have been better of using those stablecoins to purchase spot ETH (without staking) as the interest the farm pays may end up worth less than the upward movement in ETH price.
  • Smart Contract Risk - Smart Contracts are the codified digital law that defines the technical workings of a protocol. Hacks and smart contract errors can occur on audited and the best-written lines of code. An exploitable weakness in the smart contract code or other forms of attack can see a token quickly lose all value and leave some users holding a bag of worthless coins.
  • Rug Pulls / Fraud - These exit scams occur on projects where fake companies are built and marketed to individuals in an attempt by the founding members/insiders to take the investors' money and disappear. Most often, this occurs when the development team controls an overwhelming majority of the circulating supply and dumps it all on the market once a price goal or certain level of hype is reached (this is known as a 'rug pull' in crypto circles). A 2020 CipherTrace report found that 99% of major frauds that occurred in crypto were rug pulls or exit scams.

Why Use BTC Yield Fund?

If you'd like to get some exposure to Yield Farming but don't have the time to do research or constantly watch the charts on new/unproven farms while you tend your 'crops', then allow us to do it for you. With our Machine Learning overlay, combined with our expert quantitative analysts we are able to move capital around in ways that maximize yield efficiency while mitigating risk. Our team combined with our AI system work around the clock to find the best balance of yield and capital safety by monitoring charts, checking contracts, and doing research on your behalf.
Simply put, instead of you researching and worrying about rug pulls and IL, we do the work and provide you with the impressive returns that Yield Farming has to offer.

Fees

  • Performance fee: 30%
  • Management fee: 0%
  • Buy/sell fee: 1% (waived for SWD token holders)

Quarterly Lockups

Redemption of SWBYF is available in the last three days of each quarter. During this period, it is possible to sell SWBYF for WBTC on Uniswap. For the remaining time, only buy orders are available.

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