Re7 cbBTCPrice

(RE7CBBTC)

RE7CBBTC is a yield-bearing ERC-20 share token representing a user's stake in a specialized vault managed by Re7 Labs. When you deposit institutional wrapped Bitcoin into the vault, you receive RE7CBBTC tokens in return. Unlike standard assets that remain static, these tokens represent a share in a lending pool. As the vault generates interest from borrowers and earns protocol rewards, the value of RE7CBBTC increases relative to the underlying Bitcoin asset, allowing holders to accrue passive returns over time.

Standard institutional wrapped Bitcoin is typically an "idle" asset that remains 1:1 with Bitcoin but does not generate native returns while sitting in a wallet. In contrast, RE7CBBTC is a "productive" asset. It represents wrapped Bitcoin that has been actively deployed into decentralized lending markets. This allows users to maintain exposure to Bitcoin while simultaneously earning yield, effectively transforming a passive holding into an active, interest-earning position within the DeFi ecosystem.

The yield is generated through two primary channels within the underlying lending protocol. First, it comes from interest paid by borrowers who provide other digital assets as collateral to borrow the vault's Bitcoin. Second, the vault may earn supply-side incentives or governance rewards distributed by the protocol to liquidity providers. Re7 Labs actively manages the allocation of assets across different markets to optimize these returns based on borrowing demand and available incentives.

Holders face three main categories of risk. First is smart contract risk, which is inherent in any decentralized protocol. Second is the risk of "bad debt"; if borrowers are liquidated and their collateral is insufficient to cover what they borrowed, the vault's share price could decrease. Third is custodial risk. Because the underlying asset is a wrapped token backed by a centralized institution, users are exposed to the security and regulatory standing of the entity holding the physical Bitcoin.

The vault is managed by Re7 Labs, acting as a Risk Curator. They manually and algorithmically set parameters for lending markets, such as supply caps and collateral requirements, to mitigate risk. In exchange for this active management, a performance fee is typically applied to the yield generated. This fee is a percentage of the interest earned and is deducted automatically before returns are reflected in the value of the RE7CBBTC token.

No, the vault is designed to be permissionless and non-custodial, meaning there are generally no fixed lock-up periods. Users can typically initiate a withdrawal of their assets at any time. However, because the Bitcoin is deployed in active lending markets, the ability to withdraw depends on the available liquidity in those specific pools. If the majority of the assets are currently being utilized by borrowers, a withdrawal may be processed as liquidity becomes available through repayments.