Yield Distribution

mBTC Yield Distribution

mBTC is a yield-bearing token, with yield distributed through price appreciation. The price of mBTC is updated weekly to reflect the latest portfolio appraisal, including newly accrued interest, allowing investors to receive their mBTC interest through an updated redemption value.

Example: Net Asset Value Accumulation

When interest from BTC collateral are acruing, assets are reinvested, increasing the net asset value of the mBTC portfolio. As the net asset value of the mBTC portfolio is adjusted, so is the value of mBTC tokens.

Date	Portfolio NAV	% Change	mBTC Price
02/01/2024	100 BTC	-	1 BTC
02/02/2024	100.011 BTC	0.011% (4% annualized)	1.00011 BTC