In the pursuit of asset security and yield generation, exSat holds the grand vision of building an on-chain pocket bank accessible to everyone. Just as the philosophical concepts of yin and yang reveal the beauty of the world’s equilibrium, exSat explores the harmonious coexistence of security and yield in the investment field. Traditionally, it is believed that these two cannot be achieved simultaneously — one either locks assets in a cold wallet for security or invests them in the market to chase returns. However, exSat’s latest Hybrid Yield Solution breaks this binary opposition, proposing an innovative model of “1 BTC, 2 Portions of Returns.”
What is the Hybrid Yield Solution?
Imagine your Bitcoin as a versatile asset that can simultaneously “rest” securely in a cold wallet and “work” to generate yields in the market. Through its partnership with Ceffu, exSat introduces a Hybrid Yield Solution leveraging MirrorRSV technology. This innovative approach combines on-chain staking, enhanced restaking, and delta-neutral strategies on centralized exchanges (CEX), enabling your BTC to earn returns from both blockchains and exchange platforms without ever leaving the safety of cold storage.
Specifically, exSat’s Hybrid Yield Solution offers the following features:
Dual Yields: One BTC generates two portions of returns, both on-chain and off-chain.
High Yield Rates: The expected annualized yield is approximately 10%.
Transparency and Auditability: Fund flows are trackable on the blockchain, ensuring complete transparency.
High Security: BTC remains stored in a cold wallet, with investors retaining the highest level of control.
Three Sources of Yield
exSat’s hybrid yield comprises three components, each acting as an independent “engine” driving your investment growth.
Delta-Neutral Strategy from CEX
The delta-neutral strategy is a market-neutral trading approach designed to eliminate directional market risk. It balances the positive and negative deltas in your portfolio, allowing your investments to profit from volatility regardless of market movements. This strategy is executed on centralized exchanges like Binance, leveraging high liquidity to generate stable returns.Staking Yield from exSat
Staking involves locking your cryptocurrency in the network to help validate transactions and maintain security, earning rewards in return. In exSat’s solution, your BTC (via mirroring technology) participates in staking to earn steady on-chain yields, akin to lending your BTC to the blockchain network for interest.Enhanced Restaking Yield from collaborative chains
Enhanced restaking allows you to utilize staked assets in other blockchain protocols to earn additional rewards. Through integration with partner chains, exSat enables your BTC’s mirrored value to multitask across multiple networks, enhancing overall returns. This is like having your BTC work part-time in various projects, each contributing to your earnings.
MirrorRSV Technology: Enabling BTC to “Split Itself”
The realization of exSat’s Hybrid Yield Solution relies on MirrorRSV technology, exclusively supported by Ceffu. This technology allows your BTC to be stored in a fixed address within Ceffu’s Qualified Wallet while generating a mirrored value, BTCX, on centralized exchanges like Binance for trading purposes. Alternatively, through the Vaulta mechanism, it can be mirrored into XBTC for staking and re-staking on exSat and collaborative chains.
Assets Stay Put, Yields Flow.
MirrorRSV technology ensures that your actual BTC remains in cold storage. The mirrored BTCX is a credit token used solely for trading within the exchange and cannot be withdrawn, safeguarding your principal. Yield distribution is managed through exSat’s smart contracts, ensuring transparency and security.
MirrorRSV vs. Standard MirrorX
Security and Transparency Assurances
Asset Isolation: BTC is stored in Ceffu’s separate workspace, with investors having full control.
Non-withdrawable: All Assets Will Be Mirrored To exSat’s Binance Master Account As Credit Balance. These assets will be classified as Credit Balance as BTCX, and exSat will allocate BTCX to the corresponding sub-accounts for trading.
On-Chain Transparency: Yields are distributed via smart contracts, with trackable fund flows.
Investor’s Asset Co-Management Model
exSat’s solution adopts a co-management model, ensuring users’ complete control and security over their assets.
Independent Workspace
Your BTC is stored in Ceffu’s independent workspace, with you as the administrator having full management rights. exSat acts as an auditor, monitoring account status for transparency.
Trading and Yield Distribution
Trading teams execute delta-neutral strategies via API, with permissions limited to trading only. Profits are withdrawn from Binance and distributed via exSat’s smart contracts according to agreed ratios.
Staking Yield Management
Through the Vaulta mechanism, XBTC is staked and restaked, with rewards shared with investors as per the contract, settled in XBTC or stablecoin. Yields are generated through platforms like Kiki Finance or other staking protocols.
Best Practices: Asset Flow and Yield Distribution
To help investors understand exSat’s Hybrid Yield Solution, here is the complete flow of BTC and its mirrored assets:
BTC Custody: Investors deposit BTC into Ceffu’s Qualified Wallet, where assets are frozen and allocated to multiple fixed on-chain addresses.
Mirroring to Binance: BTC is delegated to BTCX, injected into exSat’s master account on Binance, and allocated to sub-accounts.
Mirroring to exSat: BTC is delegated to XBTC, entering exSat’s Vaulta treasury for staking and restaking.
Trading and Staking:
On Binance, the trading team executes delta-neutral strategies via API to generate yields.
On exSat, XBTC is staked through Kiki Finance or other protocols to produce on-chain rewards.
XBTC can be further restaking on collaborative chains to obtain additional yields.
5. Yield Distribution: All yields (including trading profits and staking rewards) are distributed through exSat’s smart contracts, allowing investors to claim their share in XBTC.
6. Flexible Utilization: Investors can reinvest yields, continue staking, exchange for other assets, or spend via the U card.
Opening a New Chapter in Bitcoin Yields
exSat’s Hybrid Yield Solution redefines Bitcoin investment, allowing secure appreciation and maximized capital efficiency through dual yields. This breakthrough embodies the philosophy that security and yield can coexist, marking a significant step towards exSat’s vision of an on-chain pocket bank for global users.
About exSat
exSat is the Bitcoin Digital banking service provider for on-chain yield, staking, and programmable asset management. With secure smart contracts, institutional-grade custody, and hybrid consensus, exSat transforms Bitcoin from a passive asset into the foundation of a global decentralized financial system.
About Ceffu
Ceffu is a compliant, institutional-grade custody platform offering custody and liquidity solutions that are ISO 27001 & 27701 certified and SOC2 Type 1 & Type 2 attested. Our multi-party computation (MPC) technology, combined with a customizable multi-approval scheme, provides bespoke solutions allowing institutional clients to safely store and manage their digital assets. Institutions may also benefit from Ceffu’s secure gateway to a wide range of liquidity products within other exchanges’ ecosystems.
