Product Mechanics

How LcBTC works

How the Strategy Works

1. Deposit BTC / wrappers (cbBTC, wBTC - soon BTC, uBTC)

2. BTC serves as collateral on Aave, Morpho → Borrow stablecoins at max 50% LTV

3. Stablecoins deployed across HyperLend, HypurrFi, Felix (~12%+ APY)

4. Additional yield source from Hyperliquid HLP (~17% avg. APY)

5. Automated cross-chain arbitrage engine captures 8–15% rate premiums across lending markets

6. All returns converted back → Paid in BTC

Technical Implementation

Withdrawal Mechanics

LcBTC → cbBTC / wBTC

Overview Withdrawals from the BTC vault are request-based and resolved manually by the Edge Capital team. Requests do not expire and can be accumulated.

Key Mechanics

• Request submission:

  • Submitting a new withdrawal increases the existing request amount.

  • You may have up to two active requests at the same time, one for cbBTC and one for wBTC.

• Asset handling during withdrawal:

  • Upon requesting a withdrawal, LcBTC is transferred to the vault.

  • Once the request is resolved, you receive cbBTC or wBTC.

• Cancellation:

  • You can manually cancel a withdrawal by calling cancelRedeemRequestOfAsset.

• Timeouts:

  • Withdrawals do not time out.

• Settlement:

  • Requests are solved by the Edge team.

• Fees:

  • No withdrawal fees apply.