Institutional investors typically ensure that capital is actively deployed. Assets on the balance sheet are expected to contribute through income generation, collateral utility or risk-adjusted returns.

Bitcoin has been the exception. Seen as digital gold, it offered upside but not much support for yield or financing. This is starting to shift as more institutions get involved and infrastructure improves.

1. Why BTC yield has remained elusive

BTC yield does exist but the systems that support it are still early.

While some options traders use riskier strategies, these remain small in scale and difficult to access. The main challenges are counterparty risk, limited custody solutions and shallow liquidity.

Counterparty risk concerns have kept many institutions away. Past exchange failures and hacks made trust a big issue. After the FTX collapse in 2022 the need for strong custody solutions and qualified custodians became essential. Even today, there is less market depth and liquidity for Bitcoin yield strategies compared to traditional markets. This makes it difficult to deploy larger positions without size constraints.

Bitcoin does not support staking like Ethereum or Solana.

There is no proof-of-stake, no validator rewards, and no built-in delegation. This design choice keeps Bitcoin secure and simple, but it also removes the easiest way to generate yield that other cryptocurrencies have.

Currently less than 1% of BTC is used in DeFi, mostly as wrapped tokens (WBTC, cbBTC, LBTC, etc.).

Even these synthetic representations face challenges related to bridge security and centralization concerns. The primary yield strategies available are basis trades, which involve borrowing USD against BTC collateral to capture returns exceeding funding costs and generate yield denominated in Bitcoin.

These strategies can be profitable for advanced traders, but they remain inaccessible to most institutions due to their complexity and risk management requirements.

2. Bitcoin’s institutional transformation

Bitcoin ETFs are now the largest form of wrapped exposure, currently holding between 1.1 and 1.3 million BTC. For comparison, WBTC on Ethereum is roughly 150,000.

They give institutions regulated access without the operational complexity of direct custody and they’re quickly becoming the base layer for new yield strategies like:

• Securities lending programs that allow ETF shares to be lent for additional income
• Collateralized lending facilities using ETF positions as security
• Integration with traditional prime brokerage services, enabling margin accounts and leverage

ETFs work for institutions because they fit directly into existing infrastructure. The operational, compliance and reporting frameworks are already in place which makes it straightforward to extract value without reinventing the wheel.

At the same time, financial institutions are expanding their digital asset services which result in more comprehensive prime brokerage offerings that mirror those found in equities markets. The build-out typically involves margin lending, securities financing and integrated risk management, which are the bases for institutional yield.

Institutional mandates typically center on capital growth, income generation, inflation hedging and capital preservation. Bitcoin has historically been positioned solely as a growth asset. The development of yield options introduces the possibility for Bitcoin to become a dual-purpose asset and appeal to a broader range of institutional allocators.

Traditional markets already demonstrate this dynamic. The equity lending market, which accounts for 5-10% of total equity value, provides a clear example. Institutions have a duty to get the best risk-adjusted returns from every source.

Just as equity portfolios routinely generate additional yield from securities lending, Bitcoin holdings will inevitably do the same.

3. The zero hurdle rate advantage

They key point is that Bitcoin yield starts at zero.

Traditional assets compete with risk-free rates but on Bitcoin, any yield is pure alpha. One market participant defined Bitcoin as a currency with zero hurdle rate, meaning even a small return makes it more attractive.

We are reaching a turning point as institutional infrastructure matures and demand becomes clearer. The question is not whether Bitcoin will have strong yield markets, but how fast this will happen and which strategies will win.

Institutions that move early can benefit from market inefficiencies. Those who wait may end up competing in more efficient markets with compressed yields.

The move from zero yield to real returns will not happen overnight, but the key pieces are coming together quickly. For institutions, now is the time to establish a considered approach to Bitcoin yield.

In October, a market stress test showed that theory and practice are not always the same. Stream Protocol's liquid strategy token failed under pressure. Ethena's sUSDe did not. Both tokens offered yield and composability, but only one survived the liquidations. The reason was in their design.

This event made it clear that not all liquid strategy tokens are equal. The difference between a vault receipt and a real financial building block can decide whether you stay safe or lose everything in a volatile market.

In DeFi, people often confuse technical compatibility, like the ERC-20 standard, with real financial utility or moneyness. For experienced investors, a liquid strategy token (LST) is just a proof-of-deposit receipt until it proves it can be trusted as collateral.

Schlagonia from Yearn recently argued that the industry needs clearer standards, transparency, and stronger due diligence. This concern extends beyond individual incidents. Research from Redstone shows that yield-bearing assets are often compared using surface-level metrics, even though meaningful comparisons require understanding their underlying risks. Headline numbers like APY or TVL can obscure structural differences that only become visible under stress.

Collateral readiness is the standard that determines whether an LST can unlock true capital efficiency through leverage. We touched on this in our earlier article on the opportunity in Bitcoin finance.

An ERC-20 token can work in decentralized exchanges, but real financial composability needs more than code. It needs moneyness. An asset is only liquid and useful if it can be borrowed against. If a lending desk cannot price an asset accurately or guarantee a quick exit in a crisis, that asset has no collateral value, no matter its technical standard.

A strategy token only moves from being a proof of deposit to a true financial primitive when it is ready to be used as collateral. Serving as collateral is the main test of a financial asset’s strength. This is what unlocks leverage and allows capital to be reused.

Lending protocols need to manage insolvency risk in real time. They must be able to liquidate collateral instantly if a borrower’s health factor drops. Any delay in pricing or selling the asset makes it unfit as collateral.

An LST must meet two requirements to work as collateral: deterministic pricing and deterministic exit. If either fails, the token cannot be used reliably in financial systems.

How to determine the quality of an LST

1. The price gatekeeper: valuation determinism

In traditional markets, measuring Net Asset Value (NAV) can sometimes be an end-of-day, or even end-of-month, process based on opaque marks, while in DeFi, collateral must be priced on-chain and in real time because lending protocols rely on on-chain oracles to trigger liquidations block by block. For that to work, an LST needs a valuation method that is native to the chain and fully deterministic.

Lending protocols rely on on-chain Oracles to trigger liquidations block-by-block. Therefore, an LST must have a native, deterministic valuation standard.

• Requirement: Can the token's fair value be calculated entirely on-chain, mathematically, at any given block, without human input?
• The implication: If a strategy is a black box that reports NAV from a centralized server rather than deriving it from on-chain assets, it introduces oracle risk. Lending protocols cannot safely list assets with ambiguous or manipulatable pricing feeds. If pricing is not deterministic, the asset cannot be treated as reliable collateral.

2. The time gatekeeper: duration determinism

The second, often overlooked, friction is duration risk, which is how sensitive an asset’s value is to the time required to convert it back to cash. In DeFi, this can be expressed as:

When withdrawal timelines are uncertain, the liquidity discount spikes toward infinity during a crisis. To minimize this discount, the redemption process must be fully automated and predictable.

• True automation (epochs)
  Withdrawals are processed through predictable, contract-enforced windows (for example, every 4 hours). The timeline is code-guaranteed.
• False automation (scheduled)
  Many protocols claim automation but rely on "scheduled" withdrawals, such as processing every Friday. This approach requires human batching and multisig approvals.
• Implication
  Scheduled processes introduce operational duration risk, the risk that the human operator is unavailable, incapable, or unwilling to process redemptions during extreme market volatility. For collateral, this risk is untradeable.

Deep auditing of every protocol is often impractical, even for professionals. Fortunately, fake composability reveals itself through operational patterns that are easy to spot without going through the code.

How to tell if an LST is collateral-ready

1. The banking hours test (automation vs manual)

A red flag is withdrawals that are processed only during business hours or on fixed calendar days, such as 9 to 5 EST or every Friday.If withdrawals only move when people are online, the protocol still depends on manual work. For collateral assets, this is a problem because liquidity must function during market swings, not just office hours. The banking hours test shows whether the system is actually automated or still needs people to run.

2. The DIY liquidity test (verification)

A red flag is when documentation promises instant liquidity but chain data shows gaps or delays.To verify how the protocol behaves:

• Check chain data: review the contract on Etherscan. Do redemptions settle on time.
• Do the $10 test: deposit a small amount and try to redeem it immediately. If the process is slow or unreliable for $10, it will not scale to $10 million.
• Check proof of reserves: look for a live, on-chain dashboard that confirms assets exist. Without it, you are trusting a spreadsheet.

3. The hidden leverage test

A red flag is uncertainty about the vault’s leverage level or the conditions that trigger liquidation.Leverage inside the vault compounds with leverage taken against the token. A vault running 3x leverage plus another 3x borrowed against the token is not 3x exposure, it is 9x.Understanding the kill-switch price and liquidation logic is essential for lenders to model real risk. If this is unclear, the true risk surface cannot be priced.

4. The battle-scar audit (history and edge cases)

The red flag here is a protocol that has never been tested during an actual market stress event, such as a 30 percent drawdown in a core asset within a single day.Calm markets can hide deeper problems. Allocators should look at demonstrated resilience, not theoretical design.

• Edge cases: did the peg hold during volatility? Did redemptions continue or pause?
• Post-mortems: if incidents occurred, were mechanisms rebuilt or just patched?

Conclusion

For allocators, the ability to distinguish true primitives from advanced receipts is essential to deploy capital effectively in DeFi.The transition from a receipt to a true primitive depends on collateral readiness, which requires two conditions:

1. Price determinism: the token’s value can be determined on-chain in real time without human input.
2. Time determinism: redemptions run through automated and predictable time windows.

Without both structural properties, the token remains uncomposable, unable to support leverage or function as reliable collateral in DeFi lending markets.

About Structured

Structured is shaping a new standard for Bitcoin yield, turning BTC from a static store of value into a liquid asset that generates sustainable returns and unlocks broader financial utility. Its mission is to deliver real BTC yield that’s scalable, composable, and liquid by design.

The team draws on deep expertise from leading liquid staking protocols and institutional staking providers. We build on proven DeFi infrastructure to create yield solutions designed specifically for Bitcoin’s unique characteristics and structural realities.

During our contributors’ time at Lido (Ethereum’s leading liquid staking provider), P2P (an institutional staking provider), and Nomura (Japan’s largest investment bank and brokerage), we developed a deep, first-hand understanding of what it takes to make the largest crypto assets liquid, secure, and impactful within an open financial ecosystem.

• Follow Structured on Twitter and LinkedIn
• Join the announcement channel on Telegram
• Get in touch with the team

Of the ~$8B of BTC on AAVE’s Ethereum deployment, only about $250m is being borrowed at an annual rate of less than 0.25%. This contrasts other tokens like ETH and USDC whose utilizations, borrow rates, and lending yields are much higher.

These numbers tell us a few things : 

1. Given the low rates, the primary use case for BTC is collateral for borrowing
2. There is little demand to borrow BTC
   1. Short sellers are better off using perpetual futures where they get paid to short
   2. There is not a significant market for rates arbitrage on BTC, where people borrow at low rates and earn at higher ones 

Let’s dive into these points a bit deeper. 

Borrow looping 

The two markets driving most of the TVL growth in onchain finance this cycle are yield bearing tokens (Ethena, EtherFi, Lombard…) and lend-borrow markets (Morpho, AAVE, Euler,...). And their growth is highly interconnected. 

Borrow looping - the act of borrowing at a lower rate, swapping the tokens for a yield bearing token earning a higher rate, providing that as collateral to borrow again, and repeating - has driven billions of dollars of capital into lend-borrow markets and yield bearing tokens. The increase in borrow activity from looping drives returns to lenders who earn the rate that loopers pay to leverage their position. As a result, lending becomes a way to earn lower yields at lower risks, as they have the added benefit of being protected against drawdowns (e.g., slashing or depegs).

Ethereum had a unique advantage in growing its lend-borrow activity since lending was introduced before staking. The same can not be said about other ecosystems, namely those which launched alongside staking. Naturally, since early on lending was the primary source of low risk yields for depositors, ETH lending supply built up. When staking launched, and tokenized staking yield made it easy to use a staking position as collateral, users were able to take advantage of the glut of lending supply that had built up and borrow ETH cheaply against their Lido wstETH to leverage the returns via looping.

A similar opportunity exists today for BTC yield products. This is because the growth of lending supply has preceded the proliferation of yield bearing BTC. All that’s needed is a yield bearing BTC that can be used as collateral.

The current market

BTC yield tokens have only recently begun to take off with the launch of Babylon (Bitcoin staking) and the protocols that are tokenizing staking positions on Babylon (e.g., Lombard, EtherFi, Bedrock). The yield source for these tokens are token inflation and/or points.

This makes it difficult for these tokens to autocompound - as doing so requires them to sell the token rewards for Bitcoin or find ways to sell their points before they materialize¹. And the lack of autocompounding makes them difficult to loop, as margin maintenance becomes more complicated when you need to claim rewards, swap them for the collateral asset and deposit into your account manually. We can see these frictions play out empirically by just looking at LBTC’s AAVE listing which has failed to make a significant dent in BTC lending. 

¹ One way to achieve compounding yield on a points or incentive driven derivative is to use a fixed rate protocol like Pendle, and use the PT for collateral. Notably this has become very popular for USDe, although the same has not happened for BTC yield. Some potential reasons for this include: low yields, high churn from maturing collateral, differences in go-to-market timing or strategy.

The opportunity

What’s needed for this market to take off is a scalable, autocompounding, yield-bearing BTC token.

As we previously mentioned, autocompounding is one part of unlocking the borrow-looping trade on BTC as it removes complexity from margin maintenance and risk from point-value speculation.

Scalability is the other. Unlike ETH and USD which have practically infinite supply for yield (via staking or treasuries respectively), BTC has no natural source of scalable yield since it’s secured by proof-of-work. This friction explains why we have yet to see sustainable, scalable yield bearing BTC tokens proliferate in the onchain economy and instead yield primarily driven by token inflation and speculative points programs. Scalability is also a critical component in making it possible to bootstrap enough liquidity for safe and significant collateral supply capacity for a single token denomination.

This is not to say that it’s impossible to create one. Over the last few years futures markets on crypto tokens have become increasingly liquid. As a result, market participants are able to hedge large scale portfolios of crypto tokens at lower costs than ever - which has given way to the burgeoning structured product industry onchain.

We are seeing this play out with Ethena, which at the time of writing this has garnered $15B in TVL. Ethena holds spot assets like BTC, ETH or wstETH and shorts them on perpetual futures exchanges to hedge into a delta-neutral position (i.e., the position’s PnL is not exposed to fluctuations in price of their spot holdings). Since futures markets are typically in Contango (i.e., shorts get paid by longs), the position earns fees paid from long traders. After tokenizing these positions, they allow a yield bearing, dollar denominated token to be composable with the rest of the onchain economy. Unsurprisingly much of their growth is being driven by using the receipt token (sUSDe) as collateral in onchain lending protocols. 

This same catalyst (liquid crypto futures markets) that made dollar-denominated, yield bearing tokens like Ethena possible, also opens the possibility for BTC-denominated, yield bearing tokens. 

Conclusion

Much of the growth in yield bearing tokens (e.g., sUSDe, wstETH, weETH) has been driven by collateral usage, particularly borrow-looping. If we consider the three major crypto denominations USD stablecoins, ETH and BTC, only BTC related finance has been left out of this growth despite abundant lending supply. The reason is straightforward: borrow-looping requires a collateral asset that compounds faster than the borrow costs, and no such BTC denominated token meets this requirement. 

For this to change, there needs to be a scalable, autocompounding, yield-bearing BTC token. 

• Scalability is important because it means the token can support enough deposits to saturate borrow-looping demand and enough liquidity to safely increase collateral capacity.
• Autocompounding is important because it allows loopers to minimize their margin maintenance overhead.

The difficulty in doing so is largely tied to there being no natural, scalable source of yield on BTC, whereas USD and ETH have treasuries and native staking. One catalyst that may change this has been the growth of liquid futures markets which can be used to hedge positions. This has enabled protocols like Ethena to create USD denominated positions earning above the risk free rate, and could be extended to enable non-USD denominated yield bearing tokens as well. 

To see how this thesis is applied in practice, read Introducing maxBTC: real yield on Bitcoin.

About Structured

Structured is shaping a new standard for Bitcoin yield, turning BTC from a static store of value into a liquid asset that generates sustainable returns and unlocks broader financial utility. Its mission is to deliver real BTC yield that’s scalable, composable, and liquid by design.

The team draws on deep expertise from leading liquid staking protocols and institutional staking providers. We build on proven DeFi infrastructure to create yield solutions designed specifically for Bitcoin’s unique characteristics and structural realities.

During our contributors’ time at Lido (Ethereum’s leading liquid staking provider), P2P (an institutional staking provider), and Nomura (Japan’s largest investment bank and brokerage), we developed a deep, first-hand understanding of what it takes to make the largest crypto assets liquid, secure, and impactful within an open financial ecosystem.

• Follow Structured on Twitter and LinkedIn
• Join the announcement channel on Telegram
• Get in touch with the team

October 10 brought a sharp market correction that triggered large-scale liquidations and stressed trading infrastructure across the industry.

At the same time, that volatility served as a live validation of maxBTC’s performance under stress. During the drawdown, the strategy captured liquidation fees that contributed positively to performance.

After the initial price drop, funding rates on SOL shifted significantly, causing a temporary net decrease of around 0.35% (about 20 days of performance). Despite short-term fluctuations, overall performance for private deposits remains well within the 5–10% APY target range.

JLP BTC-neutral strategy

JLP BTC Neutral is maxBTC’s first underlying strategy, is built on the Jupiter Liquidity Provider pool, which backs leveraged positions on Jupiter Perpetuals and earns fees from trader activity.

The pool is composed of SOL, ETH, WBTC, USDC, and USDT, distributing 75% of collected trading, borrowing, and liquidation fees to liquidity providers. Its market-neutral design hedges non-BTC exposure, allowing the strategy to stay balanced through periods of volatility.

Learn more about the JLP strategy in the Structured docs and in this article: maxBTC Explained: JLP Strategy.

Mechanisms that protect the strategy during volatility

The JLP strategy is designed to maintain delta-neutral exposure and stability across market conditions. Protection during volatility is achieved through three core mechanisms that balance positions and control risk.

1. Market-neutral exposure

Capital is deployed across two sides:

• A long position in the JLP pool, earning fees from trader activity on perpetual markets.
• Short positions in SOL and ETH perpetuals to offset non-BTC exposure from the JLP basket and maintain BTC denomination.

These positions balance each other, keeping the strategy market-neutral with delta hedging and minimizing directional price risk.

2. Continuous rebalancing

Hedge positions are rebalanced regularly to track JLP composition changes and trader activity. This maintains delta-neutral exposure and limits drawdowns during rapid market movements.

3. Real-time risk monitoring

Structured uses automated position monitoring and real-time collateral sufficiency checks, supported by redundant monitoring systems with global distribution.

Automated failover mechanisms, multi-signature authorization for critical operations, and regular infrastructure audits and testing ensure stability during periods of market stress.

The strategy continues to demonstrate resilience during extreme market conditions, with each event providing additional data and validation for performance and system design improvements over time.

Learn more about the risks and control mechanisms behind the JLP BTC-neutral strategy.

Follow Structured on Twitter and LinkedIn.
Join the announcement channel on Telegram or get in touch with the team.

About Structured

Structured is shaping a new standard for Bitcoin yield, turning BTC from a static store of value into a liquid asset that generates sustainable returns and unlocks broader financial utility. Its mission is to deliver real BTC yield that’s scalable, composable, and liquid by design.

The team draws on deep expertise from leading liquid staking protocols and institutional staking providers. We build on proven DeFi infrastructure to create yield solutions designed specifically for Bitcoin’s unique characteristics and structural realities.

During our contributors’ time at Lido (Ethereum’s leading liquid staking provider), P2P (an institutional staking provider), and Nomura (Japan’s largest investment bank and brokerage), we developed a deep, first-hand understanding of what it takes to make the largest crypto assets liquid, secure, and impactful within an open financial ecosystem.

DISCLAIMER: This content is strictly educational and not targeted at any individual or jurisdiction. It should not be construed as advice or a solicitation to acquire a specific asset. It is not financial advice, or advice of any nature. Crypto products (particularly those deployed in a decentralized manner) are high-risk and you should not expect to be protected or have recourse if something goes wrong. Market conditions may change and actual future results may vary. Always DYOR and consult appropriate professionals.

Structured introduces the Structured Points Program alongside opening access to maxBTC as part of Neutron’s Bitcoin Summer campaign.

The Structured Points Program recognizes early participation across vaults and integrations. Points have been accruing from day one and are now fully visible on the live leaderboard, updated weekly.

Two maxBTC vaults are open for deposits on Neutron:

• Minting Vault: mint maxBTC and earn BTC-denominated yield
• Liquidity Vault: mint and provide liquidity in the maxBTC/WBTC Supervault for maxBTC exposure and market-making yield

Participants in either vault not only contribute to bootstrapping liquidity for maxBTC, but also earn Structured Points by default. Deposits are also eligible for NTRN rewards under Neutron’s Bitcoin Summer reward system.

Learn more about the maxBTC Minting and Liquidity vaults in this guide or visit the vaults page to get started.

If you are new to maxBTC, read Introducing maxBTC: Real Yield on Bitcoin for the broader thesis and maxBTC Explained: JLP Strategy for the first deployed strategy.

What are Structured Points?

Structured Points are designed to measure and reward meaningful participation. Every deposit, liquidity position, and integration that strengthens maxBTC is recognized through points.

Points are separate from the BTC yield generated by maxBTC itself. While maxBTC generates BTC-denominated returns from real market strategies, Structured Points track activity and rewards those helping bootstrap liquidity.

Points accrue from day one and are updated weekly on the Structured Points leaderboard. Safeguards ensure fairness: thresholds prevent balance-splitting, referral rewards benefit the referred user directly, and mechanics are applied consistently across all participants. The program is designed to expand over time, with a tier system planned for later phases to recognize sustained engagement.

For more details, see the Structured Points FAQ and official docs.

Earn through participation

Structured Points are earned across vaults and integrations. Each action carries a multiplier that reflects its contribution to maxBTC liquidity and adoption.

Multipliers

1× | Base-level participation

• Deposit WBTC to mint maxBTC
• Hold maxBTC on Neutron (outside DeFi protocols)

2× | Use maxBTC as collateral in DeFi lending

• Use maxBTC as collateral on Amber Finance

5× | Depth for BTC pairs

These positions expand secondary markets for maxBTC across Supervaults and Astroport.

A) Lend + Supervault
Route BTC assets through lending integrations on Ethereum. The position is paired with maxBTC into the corresponding Supervault on Neutron, tying lending supply to trading liquidity.

• Bedrock Lend + maxBTC LP (uniBTC)
• Solv Lend + maxBTC LP (SolvBTC)
• Etherfi Lend + maxBTC LP (eBTC)

B) Direct Supervault LPs
Deposit maxBTC directly into Supervault pairs. These LPs enable market-making activity and connect maxBTC to BTC assets in active trading venues.

• maxBTC/uniBTC LP Supervault
• maxBTC/SolvBTC LP Supervault
• maxBTC/eBTC LP Supervault
• maxBTC/LBTC LP Supervault

C) Astroport pools
Provide liquidity to the same BTC pairs on Astroport. These pools expand secondary market depth for maxBTC.

• Astroport maxBTC/uniBTC LP
• Astroport maxBTC/SolvBTC LP
• Astroport maxBTC/eBTC LP
• Astroport maxBTC/LBTC LP

10× | Provide liquidity in WBTC pairs

Positions that concentrate depth in the core maxBTC/WBTC markets across Supervaults and Astroport.

• Liquidity Vault shares (mint + maxBTC/WBTC LP Supervault)
• maxBTC/WBTC LP Supervault
• Astroport WBTC/maxBTC LP

25× | Provide liquidity in stablecoin pairs

Positions connecting maxBTC to USDC build stable trading venues for converting between BTC yield and stable assets.

• maxBTC/USDC LP Supervault
• Astroport maxBTC/USDC LP

The Structured Points Program will continue to evolve as new strategies and integrations go live. Multipliers and supported positions may change over time, check structured.money/points for the latest information and to track your activity.

Stay up to date

• Join the Structured Announcements channel on Telegram
• Follow Structured on X and LinkedIn
• Read Structured’s Docs and FAQ
• Visit Structured’s website
• Visit the vaults page to deposit
• Explore the Structured Points Program

About Structured

Structured is shaping a new standard for Bitcoin yield, turning BTC from a static store of value into a liquid asset that generates sustainable returns and unlocks broader financial utility. Its mission is to deliver real BTC yield that’s scalable, composable, and liquid by design.

The team draws on deep expertise from leading liquid staking protocols and institutional staking providers. We build on proven DeFi infrastructure to create yield solutions designed specifically for Bitcoin’s unique characteristics and structural realities.

During our contributors’ time at Lido (Ethereum’s leading liquid staking provider), P2P (an institutional staking provider), and Nomura (Japan’s largest investment bank and brokerage), we developed a deep, first-hand understanding of what it takes to make the largest crypto assets liquid, secure, and impactful within an open financial ecosystem.

DISCLAIMER: This content is strictly educational and not targeted at any individual or jurisdiction. It should not be construed as advice or a solicitation to acquire a specific asset. It is not financial advice, or advice of any nature. Crypto products (particularly those deployed via smart contracts and in a decentralized manner) are high-risk and you should not expect to be protected or have recourse if something goes wrong. Market conditions may change and actual future results may vary. Always DYOR and consult appropriate professionals.

Structured is opening up access to maxBTC on Neutron as part of Phase 1 of Neutron’s Bitcoin Summer campaign. This phase introduces a dedicated vault that allow participants to mint maxBTC and earn BTC-denominated yield ahead of the full protocol launch.

maxBTC allows Bitcoin to act as productive capital through scalable and market-neutral strategies. It preserves BTC exposure while compounding returns in a liquid, composable format. For the broader vision and thesis, see Introducing maxBTC: Real Yield on Bitcoin.

Structured’s first strategy is based on the Jupiter Liquidity Provider (JLP) pool, which backs leveraged positions on Jupiter Perps and earns fees from trader activity. It has been live for more than 250 days and, since June, private beta deposits have delivered 5-10% BTC-denominated APY without inflationary token incentives. For mechanics and performance, see maxBTC Explained: JLP Strategy.

Vault Open for Deposits

The maxBTC Minting vault is open for deposits on Neutron. Deposits are capped at 500 BTC. The vault accepts WBTC, wrapped Bitcoin on Ethereum mainnet to mint maxBTC. It connects directly to Structured’s minting contracts, and the underlying strategy is deployed once the cap is reached.

Withdrawals are possible at any time. When withdrawing, depositors receive maxBTC on Neutron at their designated address.

maxBTC Minting Vault

For holders who want straightforward exposure to maxBTC without additional incentives. Users deposit WBTC, mint maxBTC, and enter the queue until batch deployment. Once the 500 BTC deposit cap is reached, funds are deployed into Structured’s BTC-neutral JLP strategy. No strategy yield accrues during the queueing period — yield begins only after deployment.

How it works:

1. Go to structured.money/vaults and select the maxBTC Minting Vault
2. Connect an Ethereum wallet
3. Follow the steps to complete KYC via third-party provider zkMe
4. Deposit WBTC from Ethereum into the maxBTC Minting Vault
5. Deposits queue until the 500 BTC cap is hit
6. At fund deployment depositors earn sustainable real BTC yield via maxBTC

Structured Points Program

The Structured Points Program recognizes early participation across vaults and integrations. Points start accruing from day one and will appear retroactively once the leaderboard is live, with weekly updates.

For details, see our FAQ and structured.money/points.

Participants depositing into the Minting vault will also receive NTRN rewards. See Bitcoin Summer and the Bitcoin Summer rewards system for details.

Participation requirements

Structured, its partners and affiliates comply with applicable AML laws and regulations. All participants must complete KYC to mint maxBTC and otherwise participate in this phase and access the vaults.

• Individuals will be able to onboard via a third-party integration with zkMe, providing ID and proof of address.
• Entities can contact Structured Business Team directly for manual verification.

While acquiring and trading maxBTC on DEXs will be possible without KYC, minting and redemption through Structured will always require verification to comply with AML standards.

For more details on KYC requirements and the verification process, please see our FAQ.

Building sustainable BTC yield

maxBTC concentrates liquidity in a single asset that can be deployed across scalable, market-neutral strategies. It allows holders to earn BTC-denominated returns while maintaining exposure to Bitcoin, and ensures that capital remains liquid and composable across DeFi integrations.

Through a partnership with Neutron, access now extends beyond the private beta. The vault gives eligible participants the ability to mint maxBTC, earn yield, and establish liquidity that enables DeFi use cases.

Visit structured.money/vaults to get started.

Stay up to date

• Join the Structured Announcements and Bitcoin Summer Announcements channels on Telegram
• Follow Structured on X and LinkedIn
• Read Structured’s Docs
• Visit Structured’s website
• Learn more about maxBTC Vaults and the Structured Points Program

About Structured

Structured is shaping a new standard for Bitcoin yield, turning BTC from a static store of value into a liquid asset that generates sustainable returns and unlocks broader financial utility. Its mission is to deliver real BTC yield that’s scalable, composable, and liquid by design.

The team draws on deep expertise from leading liquid staking protocols and institutional staking providers. We build on proven DeFi infrastructure to create yield solutions designed specifically for Bitcoin’s unique characteristics and structural realities.

During our contributors’ time at Lido (Ethereum’s leading liquid staking provider), P2P (an institutional staking provider), and Nomura (Japan’s largest investment bank and brokerage), we developed a deep, first-hand understanding of what it takes to make the largest crypto assets liquid, secure, and impactful within an open financial ecosystem.

DISCLAIMER: This content is strictly educational and not targeted at any individual or jurisdiction. It should not be construed as advice or a solicitation to acquire a specific asset. It is not financial advice, or advice of any nature. Crypto products (particularly those deployed via smart contracts and in a decentralized manner) are high-risk and you should not expect to be protected or have recourse if something goes wrong. Market conditions may change and actual future results may vary. Always DYOR and consult appropriate professionals.

Our previous article introduced maxBTC as a liquid, composable BTC asset designed to deliver sustainable yield. If you haven’t read it yet, start with Introducing maxBTC for the thesis and context.

This article is part two. It explains how maxBTC works in practice, introduces Structured’s first deployed strategy, and shows the performance observed so far.

One liquid asset, infinite strategies

maxBTC isn’t tied to a single chain or strategy. One token represents BTC yield across multiple sources, so liquidity concentrates, integrations stay simple, and scale becomes possible.

• BTC exposure with BTC-denominated yield: effectively 1× long BTC while compounding rewards
• Scalable across strategies: new sources of native BTC yield can be added without fragmenting liquidity
• Liquid and composable: built to integrate with DEXs, lending markets, and yield protocols

How maxBTC works

Users deposit BTC or a BTC wrapper to mint maxBTC. Holding maxBTC preserves BTC exposure while the protocol relies on multiple strategies to generate yield. A single minting contract distributes capital across strategies while keeping liquidity unified, creating strong network effects:

• DEX liquidity remains concentrated in one market
• Capital is allocated across strategies according to yield and risk
• Integrations with lending markets, yield aggregators, and DeFi protocols only need to support one asset

The result is an asset that compounds utility as it scales. maxBTC keeps BTC fully liquid while compounding yield in the background, similar to how wstETH works for Ethereum.

The JLP strategy: neutral yield from perpetual trading

The initial strategy underlying maxBTC is based on the Jupiter Liquidity Provider (JLP) pool, which backs leveraged positions on Jupiter Perps and earns fees from trader activity. Traders borrow from the pool to take leveraged positions, and JLP earns yield from their trading flows and fees. The pool itself is backed by an index of SOL, ETH, WBTC, USDC, and USDT, distributing 75% of collected fees to liquidity providers.

The strategy allocates capital across two legs: about 70% to JLP and 30% as collateral on Ceffu, an institutional custody platform, for hedging on Binance perps. The JLP side earns fees from trader activity, while the hedge neutralizes non-BTC exposure. Positions are rebalanced continuously to track pool composition and trader positioning, converting trading activity into BTC-denominated yield.

Yield sources

The JLP strategy generates yield from real market activity:

• Opening and closing fees on trades
• Borrowing fees paid by leveraged traders
• Protocol trading fees
• Liquidation fees

This is real BTC-denominated yield from flows that increase during volatility and reward efficient strategies.

Strategy capacity and performance

The JLP BTC neutral strategy has been live since December 2024. Since June 2025, Structured has deployed 50 BTC during a private beta with mainnet assets, generating 5–10% APY*. The strategy is currently designed to handle $1B+ in capacity while maintaining efficiency.

*APY and other performance figures are based on historical data which assumes no net stake/unstake activity during reward vesting periods and are for informational purposes only.

Strategy advantages

• Market-neutral design: neutralizes non-BTC exposure while preserving BTC alignment
• Sustainable source: yield comes from trading flows, not emissions or points
• Volatility capture: benefits from higher trading fees during volatile conditions
• Automated rebalancing: continuously adjusts hedge sizes to reflect JLP composition and trader positioning

What’s next

maxBTC will expand the range of strategies, onboard partners, and extend integrations across DeFi. Over time, users will also be able to access individual strategies directly, based on risk profile and custody preferences.

The next milestone is opening the current strategy to a broader set of users. Details will follow soon.

• Follow Structured on Twitter and LinkedIn
• Join the announcement channel on Telegram
• Get in touch with the team

About Structured

Structured is shaping a new standard for Bitcoin yield, turning BTC from a static store of value into a liquid asset that generates sustainable returns and unlocks broader financial utility. Its mission is to deliver real BTC yield that’s scalable, composable, and liquid by design.

The team draws on deep expertise from leading liquid staking protocols and institutional staking providers. We build on proven DeFi infrastructure to create yield solutions designed specifically for Bitcoin’s unique characteristics and structural realities.

During our contributors’ time at Lido (Ethereum’s leading liquid staking provider), P2P (an institutional staking provider), and Nomura (Japan’s largest investment bank and brokerage), we developed a deep, first-hand understanding of what it takes to make the largest crypto assets liquid, secure, and impactful within an open financial ecosystem.

DISCLAIMER: This content is strictly educational and not targeted at any individual or jurisdiction. It should not be construed as advice or a solicitation to acquire a specific asset. It is not financial advice, or advice of any nature. Crypto products (particularly those deployed in a decentralized manner) are high-risk and you should not expect to be protected or have recourse if something goes wrong. Market conditions may change and actual future results may vary. Always DYOR and consult appropriate professionals.

Bitcoin has gained mainstream acceptance as an internet-native store of value. It now holds the potential to become the asset at the center of a new financial system, one that not only preserves wealth but also enables it to grow.

Just as global demand for USD-denominated returns scaled with the dollar’s adoption, so too has the appetite for Bitcoin-native alternatives. In the TradFi system, yield-bearing assets such as bonds represent about 6% of all dollars in circulation.

In Ethereum’s case, 15.6% of ETH supply is in yield-bearing form through liquid staking and liquid restaking tokens, while for Bitcoin the share is closer to 0.3%.

This gap is visible in lending markets. On Aave, less than 4% of supplied WBTC is borrowed, leaving nearly $5 billion underutilized, waiting for sustainable, liquid solutions.

The problem isn’t demand, but a lack of quality supply. Most Bitcoin yield products fall short: they are either illiquid and not composable, or unsustainable, driven by speculative points schemes and inflationary token rewards.

The solution is an asset that holds BTC’s core properties while enabling capital to move freely across DeFi.

Introducing maxBTC: Tokenized Yield on Bitcoin

maxBTC is liquid, yield-bearing Bitcoin that offers sustainable returns to its holders through proven BTC-denominated strategies.

Built for composability, its LST-like structure makes it compatible with existing DeFi integrations and effective as collateral in lending markets. It lets holders deploy capital without losing BTC exposure, improve capital efficiency, and scale with multiple underlying strategies over time.

Key features:

• Real BTC Yield: Attractive BTC-denominated yield from a portfolio of tested strategies, not emissions
• LST-like Form Factor: Composable design that enables users to leverage their BTC through DeFi integrations
• Liquid: Withdraw anytime or trade via DEXs with minimal slippage
• Transparent and Secure: Clear strategy mechanics and risk metrics
• Scalable: Supports multiple strategies without manual capital rotation

During a 50-day private beta testing period with mainnet assets, maxBTC generated 5–10% APY* with 50 BTC in deployed capital, with no points or token incentives. The underlying strategy itself has been running for over 240 days.

The design lets holders pick their own risk level, using it in DeFi strategies such as borrowing or leveraged looping to amplify returns.

maxBTC is currently undergoing audits and thorough testing. Private whitelisted participants include Monarq Asset Management, Ouroboros Capital, CoinFund team members, Ether.Fi contributors, and chefs from Steakhouse Financial.

*Performance figures are for estimation and informational purposes only, based on historical testing data.

Turning idle BTC into productive capital

Without a native yield source like USD Treasuries or Ethereum staking, billions in wrapped BTC sit unused in lending protocols with few sustainable deployment options.

Structured’s mission with maxBTC is to give Bitcoin holders a liquid, yield-bearing asset that integrates seamlessly across DeFi, delivering sustainable and scalable BTC-denominated returns.

Want to learn more about how maxBTC works and the first deployed strategy? Read maxBTC Explained: JLP Strategy.

Stay up to date

maxBTC is now in its final testing phase and will soon be available for broader use. Get updates through Structured’s official channels:

• Follow Structured on Twitter and LinkedIn
• Join the announcement channel on Telegram
• Get in touch with the team

About Structured

Structured is shaping a new standard for Bitcoin yield, turning BTC from a static store of value into a liquid asset that generates sustainable returns and unlocks broader financial utility. Its mission is to deliver real BTC yield that’s scalable, composable, and liquid by design.

The team draws on deep expertise from leading liquid staking protocols and institutional staking providers. We build on proven DeFi infrastructure to create yield solutions designed specifically for Bitcoin’s unique characteristics and structural realities.

During our contributors’ time at Lido (Ethereum’s leading liquid staking provider), P2P (an institutional staking provider), and Nomura (Japan’s largest investment bank and brokerage), we developed a deep, first-hand understanding of what it takes to make the largest crypto assets liquid, secure, and impactful within an open financial ecosystem.

DISCLAIMER: This content is strictly educational and not targeted at any individual or jurisdiction. It is not financial advice, or advice of any nature. Crypto products (particularly those deployed in a decentralized manner) are high-risk and you should not expect to be protected or have recourse if something goes wrong. Always DYOR and consult appropriate professionals.