Depositors

As a participant in the BTC.b vault, you can deposit BTC.b and receive dBTC tokens in return. Initially, the dBTC to BTC.b exchange ratio is set at 1:1.

Share Price Growth

The growth of your investment is manifested through the increase in the value of the dBTC token. This share price is adjusted twice every month, precisely before the commencement of the BTC.b rewards period. During this time, the "stake and distribute rewards" protocol is activated, executing the rewards distribution mechanism. The augmentation in price corresponds to the target APY.

Redemption Process

Investors holding dBTC can redeem their tokens for the underlying BTC.b at their convenience, provided there is adequate liquidity within the vault. Under normal circumstances, this process is efficient and prompt. However, in the scenario where a liquidity shortage arises, it could extend the redemption timeline. In such cases of liquidity constraints, it may take up to 14 days for the vault to process withdrawals for all depositors looking to exchange their dBTC back into BTC.b.

Summary

In conclusion, the BTC.b vault offers a structured and rewarding way of managing your BTC.b investments. With the potential for regular bi-monthly growth and flexibility in redemption, it provides both an attractive return on investment and liquidity, while keeping an eye on market conditions and liquidity levels to ensure a smooth transaction process for all. This ratio will gradually increase over time thanks to the accumulation of rewards in the vault.