> ## Documentation Index
> Fetch the complete documentation index at: https://docs.aarc.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# What is BTCY?

> Institutional Bitcoin yield on-chain through a regulated, transparent structure

**BTCY targets approximately 4-6% net annual return in BTC through exposure to an institutional, market-neutral arbitrage strategy, with a 32% instant liquidity buffer and DeFi composability via an ERC-4626 vault.**

## The Problem

Bitcoin holders face a fundamental inefficiency: the world's largest crypto asset generates no native yield.

| Problem                                                  | Explanation                                                                | Market Size                  |
| -------------------------------------------------------- | -------------------------------------------------------------------------- | ---------------------------- |
| Limited institutional BTC yield on-chain                 | BTC wrappers (WBTC, cbBTC, BBTC, tBTC) earn only 1-2% in lending markets   | 27-28B USD in BTC wrappers   |
| Borrowing stablecoins against BTC is capital-inefficient | BTC-backed borrowers pay 5-12% interest while collateral earns nothing     | 40B USD market               |
| Suppressed BTC lending yields                            | BTC wrappers primarily serve as static collateral with minimal utilization | Under 1% typical lending APY |

## The Solution

Economic exposure is through **iBTCY** issued by SD Global Capital Limited; **BTCY** is the ERC-4626 vault that makes iBTCY usable in DeFi while tracking the same NAV. BTCY targets on-chain access to the Starboard Sygnum BTC Alpha Fund (SSBAF), a market-neutral arbitrage strategy managed by Starmark Investment Management Limited (FCA-regulated). SSBAF targets 8-10% net returns at the fund level. After the 32% instant liquidity buffer and a 50 bps platform fee, holders target approximately 4-6% net annual yield, denominated in BTC. SSBAF launched in October 2025; the underlying strategy has been operated by Starboard Digital since March 2021. Target returns are not guaranteed.

<Info>
  BTCY is a yield-bearing asset, not a stablecoin. Its value fluctuates based on NAV performance and is denominated in BTC.
</Info>

## Key Parameters

| Parameter           | Value                                                            |
| ------------------- | ---------------------------------------------------------------- |
| Target Yield        | 4-6% annually (BTC-denominated)                                  |
| Underlying Strategy | Starboard Sygnum BTC Alpha Fund                                  |
| Network             | Ethereum Mainnet                                                 |
| Minimum Investment  | 100,000 USD equivalent in BTC                                    |
| Platform Fee        | 50 bps annually                                                  |
| Instant Liquidity   | Up to 32% of NAV                                                 |
| Transparency        | [Proof of Solvency dashboard](https://aarc.accountable.capital/) |

## Two Tokens, One Product

BTCY operates as a two-token system designed for both regulated access and DeFi composability:

| Token     | Full Name               | Description                                  |
| --------- | ----------------------- | -------------------------------------------- |
| **iBTCY** | Institutional BTC Yield | KYC-gated primary token, transfer-restricted |
| **BTCY**  | BTC Yield               | Permissionless ERC-4626 vault for DeFi       |

* **iBTCY**: The primary token representing your position. KYC-gated, transfer-restricted to whitelisted wallets. Holders are unsecured creditors of the issuer.
* **BTCY**: An ERC-4626 vault backed 1:1 by iBTCY. Permissionless transfers, enabling use as collateral, DEX liquidity, and yield derivatives.

Both tokens share identical NAV. BTCY is always backed 1:1 by iBTCY.

<Card title="iBTCY vs BTCY" icon="arrows-repeat" href="/ibtcy-vs-btcy">
  Understand when to use each token
</Card>

## Use Cases

* **DeFi Collateral**: Use BTCY on lending protocols (Morpho, Euler) while earning yield
* **Liquidity Provision**: Provide BTCY liquidity on DEXs (Curve)
* **Treasury Management**: Institutional BTC yield with regulated custody
* **Yield Strategies**: Access yield derivatives via Pendle, Spectra

<Info>
  Protocol and venue names are illustrative only and do not imply endorsement, integration, listing, or ongoing support by the issuer. Third-party integrations are subject to those protocols’ governance and terms.
</Info>

## Who Is This For?

* **Institutional investors** seeking BTC-denominated yield with regulated custody
* **DeFi protocols** looking to integrate yield-bearing BTC collateral
* **BTC holders** who want their collateral working while borrowing stablecoins

<Warning>
  BTCY is available only to Qualified Investors. Not available to US Persons, BVI residents, or Sanctioned Jurisdictions. Target returns are not guaranteed. You may lose all or substantially all of your investment.
</Warning>

## Next Steps

<CardGroup cols={2}>
  <Card title="How It Works" icon="diagram-project" href="/product/how-it-works">
    Subscription and redemption flows
  </Card>

  <Card title="For Developers" icon="code" href="/developers/overview">
    Integrate BTCY in your protocol
  </Card>

  <Card title="NAV & Proof of Solvency" icon="chart-line" href="/product/transparency">
    Live dashboard and NAV methodology
  </Card>
</CardGroup>

***

<Note>
  Available only to eligible professional/qualified investors on an invite-only basis, subject to onboarding and compliance approval. For informational purposes only and not investment advice. Not an offer to the public or a solicitation where unlawful. No retail distribution. Not available to US Persons.

  [Disclaimers](/legal/disclaimers) · [Platform and issuer](/legal/platform-legal)
</Note>