Unlocking the Power of Bitcoin with Arkadiko: sBTC Vaults Are Here!

Arkadiko

January 7, 2025
Summary: Introducing sBTC Collateral on Arkadiko : Low liquidation risk No redemptions Generous incentives of 2,000 $DIKO per day. Bitcoin is evolving, and with the launch of sBTC Vaults on Arkadiko, we’re taking a massive leap forward in unlocking Bitcoin’s liquidity in decentralized finance. This is your chance to put your Bitcoin to work without ever letting go of it. Let’s dive into what sBTC is, how the vault works, how to get sBTC, and what you can do with USDA once you’ve minted it. What is sBTC? sBTC is a non-custodial Bitcoin-backed asset built on the Stacks blockchain. Unlike wrapped BTC that relies on centralized custodians, sBTC is decentralized and ensures you stay in control of your Bitcoin at all times. Here’s why sBTC matters: Trustless Design : sBTC is pegged 1:1 to Bitcoin, secured by Stacks’ Proof of Transfer (PoX). DeFi-Ready : It brings Bitcoin’s liquidity into the world of decentralized finance. Non-Custodial : You always hold control of your Bitcoin, staying true to its decentralized ethos. With sBTC, you’re no longer limited to just HODLing! Now, your Bitcoin liquidity can move freely and power new opportunities in DeFi! How to Get sBTC To use sBTC in Arkadiko, you have two simple options: Option 1: Mint sBTC 👉 Keep in mind that the initial cap of 1,000 sBTC has already been reached. Minting additional sBTC will be possible again once the cap is raised or removed. Prepare a Non-Custodial Wallet : Ensure your Bitcoin is accessible via one of the following non-custodial wallets: Leather or Xverse . Access the sBTC Dashboard : Head to the sBTC Dashboard and connect your non-custodial wallet with BTC ready to deposit. Enter BTC Amount : Input the amount of BTC you want to convert into sBTC. Provide Your Stacks Receiving Address : Enter your Stacks address to receive the converted sBTC. Sign the Transaction : Sign the transaction in your wallet and wait for the deposit to confirm. Done! You now have programmable sBTC, ready to use in DeFi and Web3. Option 2: Buy sBTC Directly Prefer a faster method? You can buy sBTC directly via Bitflow , a Stacks-based swap aggregator: Visit Bitflow : Go to Bitflow which is Stacks’ leading dex aggregator Select sBTC : Choose sBTC as the token you’d like to buy. Connect Your Wallet : Connect your Leather or Xverse wallet. Trade for sBTC : Swap your STX or other supported tokens for sBTC in a few simple clicks. Complete the Transaction : Confirm the trade and receive sBTC in your wallet. What is Arkadiko? Arkadiko is a decentralized stablecoin protocol built on the Stacks blockchain, designed to empower users to unlock the value of their digital assets without selling them. At its core, Arkadiko allows users to open vaults, deposit collateral like stSTX or sBTC, and mint USDA  — our decentralized, dollar-pegged stablecoin. By combining the security of Bitcoin with the flexibility of DeFi, Arkadiko provides a seamless way to borrow, earn yield, and manage your assets while maintaining full control. Whether you’re a seasoned DeFi enthusiast or new to the space, Arkadiko is your gateway to increase your liquidity exposure on the Stacks ecosystem. How Do Arkadiko sBTC Vaults Work? sBTC can now be used as collateral to open vaults and mint USDA, here’s how it works: Go to the Arkadiko app: Visit arkadiko.finance and open the vaults page under the ‘Borrow’ tab. 2. Deposit sBTC as Collateral : Open a vault by clicking on the borrow button and deposit sBTC as collateral. This locks your Bitcoin-backed sBTC while giving you access to mint USDA. 3. Mint USDA : Use your vault to mint USDA, our stablecoin pegged to the US dollar. This unlocks liquidity from your Bitcoin while keeping your exposure to BTC. 4. Manage Your Vault : Your vault’s health is determined by its collateral ratio (starting at 140% ). Maintain a healthy ratio by adding collateral or repaying USDA to avoid liquidation. 5. No Redemptions: sBTC vaults are exempt from being redeemed. Redemptions cannot technically be disabled but are set at a level that makes it unprofitable for arbitrageurs. 6. Earn Rewards : For the first 2 months, sBTC vaults will receive 2,000 $DIKO/day (pro rata) as an incentive, airdropped after each Proof of Transfer (PoX) cycle. What Can You Do with USDA? Once you’ve minted USDA, the possibilities are endless: Provide Liquidity : Deposit USDA into liquidity pools, such as the USDA/aeUSDC pool, and earn yield. Trade : Swap USDA for other crypto assets or stablecoins on decentralized exchanges. Borrow More : Use USDA to explore other DeFi protocols, increasing your earning potential without selling your BTC. Spend it: Buy that Rolex or Lambo you always wanted without spending your precious Bitcoin! (NFA) USDA gives you the flexibility to make the most of your Bitcoin while maintaining exposure to its long-term upside. Short Recap Ready to put your Bitcoin to work? Acquire sBTC through the Stacks ecosystem using the instructions above. Go to the Arkadiko Vault Page , open a Vault and deposit sBTC as collateral. Mint USDA and explore the endless opportunities in DeFi. Embrace the sBTC Revolution The future of Bitcoin in DeFi is here. Don’t just HODL, use your newly unlocked liquidity and put it to work. We’re excited to see how our community will use sBTC and USDA to shape the future of Bitcoin. Let us know your thoughts and ideas on Discord or Twitter. Be Part Of Our Vibrant Community! Be part of the Arkadiko journey and stay updated on the latest innovations, discussions, and opportunities. Connect with us on your favorite platforms: 🌐 Website : arkadiko.finance 🐦 Twitter/X : @ArkadikoFinance 💬 Telegram : https://t.me/arkadikofin 🎮 Discord : https://discord.gg/wwM9kMw5ap

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