Bitcoin Yield: How to Earn Yield on BTC
16 ene 2025
While you can make impressive returns by HODLing bitcoin, those returns could be even higher if you put your BTC to work.
Today’s Bitcoin DeFi ecosystem lets you do just that–deploy your BTC to earn yield.
Whether you’re lending your coins on a decentralized lending marketplace, acting as a liquidity provider in an AMM, or staking your coins, there are plenty of ways you can earn yield on your bitcoin. What’s more, if you want some of the highest bitcoin yields with minimized risk, Liquidium might just be what you’re looking for.
Read on to learn everything you need to know about earning yield on your bitcoin.
Yes, You Can Earn Yield on Bitcoin!
Bitcoin doesn’t pay interest natively as the dollars or euros in your bank account do.
Why?
Because you aren’t depositing your coins in a bank account to store them, instead, you hold your bitcoin in your (ideally non-custodial) Bitcoin Wallet. And just holding BTC in your wallet doesn’t generate any interest.
But that doesn’t mean you can’t earn yield on your bitcoin.
Thanks to the growing Bitcoin DeFi ecosystem, you can deploy your BTC across a range of protocols to earn interest or rewards paid in BTC.
Now, let’s look at how you can do just that!
3 Ways to Earn Yield on Bitcoin (That Actually Work)
Let’s see practical, real-life examples of how exactly you can earn a yield on bitcoin that would turn even the most unyielding (no pun intended) nay-sayers into believers.
Bitcoin Lending
One of the most popular strategies to earn a bitcoin yield is lending.
Platforms like Liquidium take it to the next level by enabling BTC hodlers to lend their native BTC while getting collateral in the form of Bitcoin Layer 1 assets, such as Ordinals, Runes, and BRC-20.
To earn yield in the Bitcoin lending market, you lend your coins to a borrower who will repay you with interest once the loan term has ended. On Liquidium’s marketplace, for instance, that can lead to an impressive 380% APY on our loaned-out BTC.
In case of default, you unlock the borrower's collateral to offset the losses from the default. On Liqudium, that means you can unlock the Ordinal inscription, Runes, or BRC-20 tokens put up as collateral that you can sell to cover losses from the default. Since loans are over-collateralized, your risk as a lender is minimized.
As such, Liquidium’s lending model offers another opportunity for bitcoin aficionados seeking high yields while managing their risks accordingly.
Liquidity Provision
You can also earn bitcoin yield by acting as a liquidity provider in decentralized trading pools.
This can be done by, for example, wrapping your BTC into WBTC and depositing it into a liquidity pool like SushiSwap’s WBTC/ETH pool. There, you are locking your Bitcoin assets into an automated market maker (AMM) smart contract where you provide liquidity for a DEX to receive your share of the pool’s trading fees plus additional rewards (typically paid out in the form of liquidity pool tokens (LPTs).
The process of earning fees and LP rewards as a liquidity provider is often referred to as “liquidity mining,” which has become a popular way to earn yield for DeFi-savvy traders.
Bitcoin Staking
Bitcoin staking is another way you can earn yield on your BTC.
As Bitcoin is secured by a proof-of-work (PoW) consensus mechanism, native bitcoin staking isn’t possible.
However, the good news is that BTC staking has recently become an option thanks to Bitcoin DeFi staking protocols, such as Babylon and Acre, designed to let you stake BTC indirectly and receive staking rewards.
The way it works is that these Bitcoin staking protocols are developing staking-like mechanisms for bitcoin HODLers to earn yield while participating in other network’s security protocols. Typically, that means using BTC in tokenized form in Bitcoin L2 proof-of-stake (PoS) systems, earning rewards paid out in Bitcoin-pegged assets.
How to Get Yield on Bitcoin Using Liquidium
Liquidium has made the bitcoin lending space even more attractive by offering some of the highest yield rates in the market against Bitcoin Layer 1 assets as collateral.
Here’s how you can earn yield on Liquidium using the platform different collateral options.
Lend against Ordinals
By lending your BTC and accepting Ordinals as collateral, you can earn a potentially substantial yield. This is how the process goes:
Pick a collection on the Lending dashboard for Ordinals by hitting the ‘Lend’ button next to it.
Decide on the lending duration and amount, and then pick your Loan-to-value (LTV) ratio by toggling between 0% and 100%.
For some blue-chip Ordinals collections, such as Runestone, Ordinal Maxi Biz, Quantum Cats, and Bitcoin Puppets, you can choose from a 5-day, 10-day, or 16-day loan duration.
The higher the LTV, the greater the risk, but you can earn higher interest and the more likely a borrower will accept the offer. Click on ‘Create Offer.’
Wait for a borrower to pick your offer, confirm the loan under the ‘Pending’ section on your Portfolio page, and hit the ‘Sign’ button.
The loan will begin after the transaction is confirmed in the mempool.
When your loan agreement has matured, the original loan amount will be returned to you, and you’ll receive the interest payments (paid in BTC) outlined in the loan agreement.
Lend against Runes
Runes can also act as collateral. Similarly to lending against Ordinals, lenders can potentially earn massive yields by lending BTC against Runes.
Find a Runes token, such as DOG•GO•TO•THE•MOON, on the Lend page and click ‘Lend’ next to it.
Choose the bundle size and lending amount, as well as the LTV ratio.
Confirm the loan.
Wait for someone to go for your offer, confirm the loan, and sign it.
Once the loan term has finished, you will receive the lent-out loan amount plus the accrued interest.
Lend against BRC-20 tokens
Finally, Liquidium also lets you lend BTC against BRC-20 tokens as collateral. Here’s how that works:
Visit the BRC-20 lending page and select the desired token by hitting ‘Lend.’
Select the bundle size, loan amount, and LTV to create the loan offer for interested borrowers.
Finalize the accepted offer by confirming and signing it–and you’re all done!
After the duration of your loan is over, you can unlock your principal amount and the accrued interest on your Liquidium dashboard.
It’s that simple!
Explore Liquidium For the Best Bitcoin Yield Rates
Earn up to 380% APY on your bitcoin by lending it to other marketplace participants on Liquidium.
Simple connect your wallet, choose the collateral asset you want to lend against, set the lending terms you’re looking for, and wait for a borrower to take you up on your offer.
Setting a new standard for earning bitcoin yield, with APYs going as high as 380%, Liquidium’s bitcoin yield-generating opportunities are second to none.
Start earning bitcoin yield today by connecting your wallet to Liquidium!
Disclaimer: This article does not constitute financial advice, and we strongly recommend conducting your own research and consulting with a professional financial advisor before making any investment decisions. We are not liable for any potential losses incurred from applying the strategies discussed. Proceed with caution and at your own risk.
FAQs
What is yield in bitcoin?
Yield in bitcoin represents the returns you can earn on putting your dormant BTC holdings to work for you. These returns can hail from various activities such as lending, liquidity provision, or DeFi staking.
How to earn yield from BTC?
You can earn a yield on BTC in multiple different ways. These include lending your bitcoin on platforms like Liquidium, facilitating liquidity in DeFi trading pools, or taking part in staking solutions like Babylon or Acre.
Where can you get the highest yields on bitcoin?
There are a number of platforms out there where you can get high yields for your idle BTC. That said, Liquidium offers some of the best bitcoin yield rates, with APY rates hitting as high as 380%.
What are the best ways to earn a yield on Bitcoin?
There are several ways you can earn yield on your Bitcoin assets, with the three most established methods being lending your BTC on DeFi lending apps like Liquidium, providing liquidity to decentralized trading pools, and staking BTC in Bitcoin DeFi staking protocols.