Introducing the cbBTC/USDC 1.5x & 3x Long ILMs — Capitalizing on the market 🐂
Seamless Protocol is excited to introduced it’s newest ILM strategies the cbBTC/USDC 1.5x & 3x Long ILMs. These ILMs offer an ability to add leverage to your cbBTC position through automation and a liquidation-less design. Adding this strategy to the shelf of ILMs helps round out options for users enabling them to pick either long or short strategies depending on their individual attitudes about the market.
Introduction
Recently, Seamless Protocol introduced ILMs (Integrated Liquidity Markets) helping users to automate their DeFi strategies. To learn more, checkout the Introducing ILMs Blog Series here!
This series dove into topics covering how ILMs work, their comparative advantages, the benefits of auto-compounding, and introduced the inaugural wstETH/ETH 3x Loop strategy.
Building upon this foundation, Seamless is excited to introduce this series of new ILM strategies tailored for individuals seeking to capitalize on any positive cbBTC price movement.
Who is this ILM strategy built for?
This ILM is built for bitcoin bulls who want to utilize a strategy consistent with their bullish outlook.
What is cbBTC?
cbBTC is a trusted and reputable wrapped version of Bitcoin, custodied by Coinbase. cbBTC is backed 1:1 by BTC. cbBTC allows you to do more with your Bitcoin, onchain. Learn more about cbBTC at coinbase.com
Capitalizing on the Market
Bitcoin, the OG cryptocurrency, holds immense value within the crypto ecosystem. A wrapped version, such as cbBTC, allows BTC to be utilized onchain, specifically within DeFi allowing users to do more with their position. BTC demand has been growing as of late, so how can someone benefit in times when there is an upward price trend of ETH?
Introducing the cbBTC/USDC 1.5x & 3x Long ILMs
Designed to increase your long exposure to BTC, these new ILM strategies harnesses the power of automation to capitalize on any upward trends of BTC.
Here’s how the cbBTC/USDC Long ILMs work:
- Leveraging cbBTC Collateral: Users deposit their cbBTC holdings as collateral.
- Borrowing Unlocked: With cbBTC as collateral, the ILM automatically borrows USDC available from Seamless Protocol, the largest native lending protocol on Base.
- Automated Reinvestment: This USDC is seamlessly swapped for more cbBTC on Base Dexes to add more exposure to cbBTC prive movements.
- Continuous Rebalancing and Optimization: The cbBTC/USDC ILMs automatically rebalances debt (USDC) to target the intended leverage ratio (1.5x & 3x respectively), reducing any risk of liquidation.
Benefits of this new type of ILM
- Enhanced Exposure: By using these ILMs, users are able to gain exposure to any upward trends of cbBTC price — whether that is as a hedge, or as a directional investment. This is a product for bitcoin bulls or those who are bullish bitcoin.
- Automated Strategies: The ILM automates the process of borrowing, swapping, capital deployment, and optimization, freeing users from the complexities of manual trading and decision-making.
- Risk Management: Built-in risk management mechanisms such as rebalancing help mitigate downside risks, ensuring capital preservation and security in volatile market environments.
- No Extra Cost: Seamless does not introduce any added fees with ILMs, ensuring users are able to put more of their crypto to work.
Investors looking to benefit from upward price movements of cbBTC stand to gain a lot from the fee-less, automated, straightforward nature of these cbBTC/USDC Long ILMs.
Conclusion
The cbBTC/USDC 1.5x & 3x Long ILMs are instruments for capitalizing on upward price movements in BTC— they are useful tools to have in the arsenal of someone holding the belief that BTC may enter a bull market.
Whether you’re new or seasoned in the space, the 1-click approachable nature of the cbBTC/USDC 1.5x & 3x Long ILMs merge automation and lack of fees to provide a seamless pathway to maximize your rewards.
Seamless offers products for bears and bulls alike on Blue Chip crypto assets. If you are looking for a long ETH strategy check out this article on Seamless’s ETH/USDC 1.5x & 3x Long ILM strategies.
Stay tuned for more updates and insights as we continue to explore the transformative potential of Integrated Liquidity Markets in the world of decentralized finance!
Seamless Protocol is a decentralized finance (DeFi) protocol focused on creating transparent and reliable DeFi experiences for users while maintaining core principles of decentralization and composability. Seamless Protocol is the first decentralized, native lending and borrowing protocol on Base and is completely governed onchain by the community through the SEAM token.
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