Maple's Bitcoin Yield: Presentation, comparison and outlook

Context

In 2025, Bitcoin (BTC) is more than ever a key asset, both within and outside the crypto market. It plays an increasingly important role in investor portfolios, as evidenced by a dominance exceeding 65%, which is a three-year high.

But this dominance now goes beyond its role as a store of value. In a context of growing sophistication in decentralized finance strategies, a recurring expectation is resurfacing: generating yield on BTC without compromising its security.

For a long time limited to partial solutions like wrapped BTC (WBTC, tBTC, etc.), the integration of BTC into DeFi is now entering a new phase. Several protocols are tackling the issue of Bitcoin's “idle liquidity,” with various approaches.

Two main strategies are emerging:

• A DeFi and retail-oriented approach, led by protocols like Babylon, Solv, or Lombard, offering higher yields but exposed to technological or liquidity risks.
• An institutional approach, aiming to combine yield with secure custody, through products aligned with traditional financial market standards.

This second category is where the BTC Yield Product developed by Maple in collaboration with Core fits in, with a clear promise: stable BTC-denominated returns, with no bridges or wrapping, in a fully institutional framework.

In this analysis, we will compare the main BTC yield-generating solutions and assess the competitive advantages of Maple and Core’s product.

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Competing Products

SolvBTC by Solv Protocol

Solv Protocol is a platform offering financial products designed to generate yield on BTC. It positions itself as a unifying layer to give users access to leading DeFi opportunities for BTC through two main products:

• SolvBTC, a token backed by wrapped BTC (cbBTC, tBTC, WBTC, FBTC) and designed to be deployed across various DeFi protocols on multiple blockchains to generate yield.
• SolvBTC.LSTs, a Liquid Staking derivative product that allows users to earn additional yield on their SolvBTC while retaining liquidity. It is compatible with protocols such as Babylon, CoreDAO, Ethena, and Berachain.

Compared to lstBTC by Maple, Solv Protocol’s products are more accessible to DeFi users and do not require KYC or institutional custody. However, they expose users to higher risks: smart contract exploits on DeFi apps, bridge vulnerabilities, wrapped BTC depegs, or liquidity issues on specific chains.

Additionally, the yields are highly dependent on economic incentives from partner protocols: currently ranging from 2% to 15%, paid in SOLV tokens or other incentives (native tokens or airdrop points).

Where Maple and Core’s BTC Yield Product positions itself as a secure institutional-grade product, Solv’s solutions aim to maximize returns with higher risk exposure.

LBTC by Lombard

Lombard is a platform offering a Liquid Staking product called LBTC. It is deployed on Babylon to help secure Proof of Stake chains and earn yield, while maintaining asset liquidity.

Moreover, LBTC holders can deploy their assets across various DeFi protocols. LBTC can be used in protocols like Aave, Pendle, Euler, and Spark to implement lending or liquidity provisioning strategies on a dozen chains.

Note: Lombard specifically offers users the ability to deposit LBTC on Maple.

Compared to the BTC Yield Product by Maple and Core, LBTC targets a broader audience and does not require KYC. It’s similar to SolvBTC in its focus on DeFi integrations and compatibility with multiple ecosystems.

However, it also carries higher risks: smart contract exploits in partner apps, changing staking terms on Babylon, or LBTC liquidity issues in secondary markets.

Yields are paid in Babylon’s BABY token and depend on various DeFi incentive programs, typically ranging from 0.8% to 8%.

Bitcoin Staking via Babylon

Babylon offers a novel approach to Bitcoin staking. Unlike traditional models where BTC needs to be wrapped or bridged to other chains, Babylon enables native BTC staking to secure Proof of Stake blockchains.

The core idea is that users can earn yield on their BTC holdings while retaining custody, thanks to a time-lock mechanism that commits capital for a fixed duration. Rewards are paid in BABY tokens or in the native token of the secured network, with yields currently around 0.65%.

Compared to Maple and Core’s BTC Yield Product, Babylon is more cutting-edge but also riskier. Moreover, yields are still heavily reliant on short-term incentives, and price fluctuations have made APYs less competitive.

Coinbase Bitcoin Yield Fund

Coinbase has launched a BTC yield product for institutional investors: the Coinbase Bitcoin Yield Fund (CBYF). It’s a private fund capped at $1 billion, offering BTC-denominated annual yields of up to 8%, according to official documents.

The fund operates via low-risk lending. Deposited BTC is lent out to vetted counterparties under strict risk management and compliance rules. Coinbase Asset Management runs the fund, and Anchorage Digital acts as the custodian.

Compared to the BTC Yield Product by Maple and Core, CBYF is closer to traditional finance products. It provides a competitive yield without DeFi exposure but requires a high minimum investment, private subscription, and capital lock-up. In contrast, Maple and Core’s product is a liquid token suitable for use in DeFi strategies and dynamic portfolios, while still maintaining institutional-grade custody and stable yield.

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Maple x Core: Btc Yield Product

If you’ve made it this far, you’ve likely recognized two persistent issues with current BTC yield products:

• Yields are not paid in BTC, but rather in alternative tokens or points
• The strategies involved often carry substantial risk, including credit risk, smart contract vulnerabilities, and slashing exposure

Maple and Core appear to have engineered a compelling solution that addresses both challenges, positioning their product as a strong contender for allocators seeking secure, yield-generating exposure to Bitcoin.

Since its launch, the product has attracted over $140 million in BTC deposits and is currently offering a 5.1% yield paid directly in BTC, underpinned by institutional-grade custody.

How does it work ?

For allocators, the process is simple: deposit your BTC and earn yield, paid directly in BTC.

Maple, as an on-chain asset manager, handles the rest:

1. Maple uses the deposited BTC as collateral to borrow USDC through its internal infrastructure.
2. The borrowed USDC is then used to purchase CORE tokens and CORE hedges.
3. Maple participates in Core dual staking using both CORE and BTC tokens directly from qualified custody.
4. Maple earns CORE token rewards (Highest tier) by contributing to network security..
5. Rewards are converted back to BTC and distributed to allocators.

During all this process, your BTC remains in institutional-grade custody (BitGo, Copper). Unlike other yield products, your BTC is never moved, wrapped, or deployed into DeFi protocols.

Where does the yield come from ?

The yield is powered by staking rewards on the Core blockchain, an EVM-compatible Layer 1 network powered and secured by Bitcoin miners, BTC, and CORE stakers.

One of Core's key innovations is the ability to enable self-custodial BTC staking using CheckLockTimeVerify (CLTV), a native Bitcoin script that allows BTC to be time-locked and securely delegated, while remaining in qualified custody such as BitGo and Copper.

When staking with Core, users have flexibility: you can stake BTC on its own, or enhance your yield through dual staking by also allocating Core tokens. Maple leverages this dual staking mechanism to access the highest reward tier, while managing and hedging the CORE token exposure for BTC allocators.

To optimize returns, Maple works closely with Core Network to convert staking rewards into BTC through a structured and risk-managed approach, ensuring consistent performance for BTC Yield participants. With this strategy, Maple targets a 3–5% yield, paid in BTC, to allocators.

Management Fees

For the active management of this product, Maple charges a 40 basis point fee on all BTC deposits, along with a 20% performance fee on any yield generated above the 5% threshold to align performance incentives.

Risk Considerations

1. Exposure to the CORE Token

Maple actively manages exposure to the CORE token as part of the BTC Yield strategy. To enable dual staking, Maple borrows stablecoins to acquire CORE, and staking rewards are also distributed in CORE. While this creates some price dependency, Maple takes a conservative, risk-first approach to managing this exposure.

CORE token downside is hedged through a structured protective put strategy at entry, designed to cover both principal and anticipated rewards. Position sizing is capped based on hedge capacity and market depth, ensuring the strategy only scales as risk can be effectively mitigated. This ensures BTC Yield remains resilient even in periods of market volatility, as seen through the start of 2025.

2. Dependence on the Core Ecosystem

CORE emissions follow a transparent, fixed schedule spanning 81 years, with no ability to accelerate or modify output. While future sustainability depends in part on ongoing Core Network development, the strategy has been intentionally structured for durability: sized conservatively, hedged at entry, and actively monitored for long-term viability. Maple continues to partner closely with the Core team to support ecosystem maturity.

3. Trust in Custodians

All BTC deposits are held in cold storage with BitGo and Copper: qualified, insured custodians and two of the most trusted names in digital asset security. BTC never leaves these vaults and is never wrapped, lent, or exposed to third-party smart contract risk. From a custody perspective, BTC Yield offers one of the most secure and risk-adjusted return profiles available to institutional allocators.

Performance since inception

Since the product launch, Maple has successfully attracted $140M in assets under management. While this is a notable achievement, it remains modest relative to their year-end target of $1.5B.

These early results were anticipated, given that Bitcoin has historically been an underutilized asset, with approximately 99% sitting idle in self-custody wallets.

Building allocator confidence takes time and demonstrable results, something Maple is beginning to deliver, with a consistent 5.3% APY since launch and no losses in any Maple managed product.

Maple is currently dedicating significant effort to the success of this product, which we believe holds substantial potential.

LstBTC, the next step

With this product, Maple and Core have already addressed a major pain point, enabling BTC holders to earn a meaningful yield without compromising on security.

Now, they are taking it a step further by introducing full liquidity. In the coming months, they will launch lstBTC, a liquid version of the product that allows allocators to continue earning yield while gaining the flexibility to deploy the asset across DeFi and further enhance returns.

As Maple’s second yield-bearing asset, lstBTC will benefit from the existing DeFi integrations established through syrupUSDC, making it immediately usable across top protocols such as Pendle, Morpho, Euler, and more.

Currently, Maple’s BTC yield product is available exclusively to institutional allocators. The introduction of lstBTC will make access significantly more inclusive. With $140M already in AUM, lstBTC is expected to attract substantial liquidity and help the BTC yield product move toward its $1.5B AUM target by year-end.

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Conclusion and Outlook

The BTC Yield Product developed by Maple and Core clearly stands out in a still-young and fragmented landscape. While most alternatives rely on inflationary incentives, experimental technical frameworks, or deep DeFi integrations, lstBTC takes a different route: that of a secure, transparent, institutional-grade product, designed to progressively integrate with existing on-chain infrastructure.

With a competitive yield (5.1–5.6% APY paid in BTC), custody managed by trusted institutional providers, and native compatibility with DeFi strategies via lstBTC, the product combines the guarantees of traditional finance with the flexibility of programmable finance.

As more investors seek to generate yield on their BTC without compromising custody or liquidity, lstBTC has the potential to become a new institutional standard. Its long-term success will depend on its adoption across major DeFi building blocks, the robustness of its lending architecture, and Maple’s ability to actively manage risk and optimize returns.