Synthetic asset defi platform Synthetix on June 19 announced that it had launched a new Bitcoin (BTC) yield farming pool in collaboration with Curve and Ren (REN). The initiative is to improve the liquidity of Bitcoin assets on the Ethereum (ETH) network through the provision of synthetic bitcoin assets like sBTC, renBTC and Wrapped Bitcoin.
Stating that the goal is to “create the most liquid Ethereum-based BTC pool available to offer traders access to the lowest slippage for trades between sBTC, renBTC, and WBTC”, the incentive will run for 10 weeks, ending in August 2020.
The blog post describes the complex mechanism of the farming pool as follows,
...Synthetix and Ren have created a Balancer pool for SNX and REN where LP Rewards are distributed in the form of BPT (wrapped SNX and REN)...this Balancer pool will also earn BAL tokens which will be redistributed to Curve BTC liquidity pool contributors. Finally, the Curve reward token (CRV)...will also be redistributed to liquidity providers.
The liqudity pool's mechanism. Source.
The BAL and CRV tokens are not yet available, but will be distributed on a pro-rata basis when released. To start earning yield, users can provide sBTC, renBTC, and/or WBTC to the liquidity pool, for which they will receive CRV tokens. These tokens can then be staked and any rewards can be claimed from the rewards tab.