A new BTC-denominated yield vault has launched on Starknet, offering an innovative approach to generating returns on Bitcoin holdings. The product brings together contributions from multiple development teams, combining tBTC liquidity with stablecoin yield strategies.

The structure targets approximately 10% BTC-denominated APR, operating within carefully designed leverage parameters to balance returns against risk exposure. Here's how it works: tBTC gets converted to USDC, which then flows into sUSN positions. These positions are recursively looped through a lending protocol, creating a compounding yield mechanism.

This approach addresses a gap in the market—Bitcoin holders on Starknet now have access to yield opportunities without leaving their preferred asset. The recursive yield structure means returns stack efficiently, though participants should understand the leverage mechanics at play.

The product sits at the intersection of several crypto trends: the growing adoption of BTC on non-Ethereum chains, the expanding DeFi yield farming landscape, and Starknet's push for liquidity. For traders and yield farmers comfortable with leverage-based strategies, this represents an option worth evaluating.