Lava Protocol

Problem Statement

LAVA PROTOCOL Unlocking Bitcoin's Trillion-Dollar Yield EconomyBitcoin: A Trillion-Dollar Asset, Asleep at the Wheel A non-custodial, fully automated yield aggregator that transforms cBTC into a productive, yield-bearing asset. Live on Citrea Testnet today where you can Deposit cBTC and Earn More cBTC.Two Intelligent Vaults for Every Strategy A vault (the Brain) controlling simple strategies (the Hands). Funds are isolated, and we can add new strategies without redeploying the vault.Use Bitcoin’s liquidity as collateral to access yield anywhere, then bring profits back to Citrea. User gets a simple deposit/withdraw experience.Fixed BTC price for demo: $119670 Reserve: 20% of new deposits; remaining split by live on-chain bps Adapters isolate strategy risk; allocations are owner-adjustableHow the Yield Engine Flows (Both Vaults) User -> deposits cBTC →Vault -> wraps to WcBTC → keeps Reserve 20% Portfolio routes remaining by on-chain bps: Zentra 80% Satsuma 0% Cross-Chain 0% Institutional 0% Zentra supplies WcBTC (earns Supply APY). If leverage is enabled, borrow small USDC, loop safely (HF>1.0). Satsuma deposits into Ichi‑managed cBTC vault (fees + emissions, managed range). Cross-Chain supplies WcBTC → borrows ~20% USDC (LTV) → bridge out → yield source accrues profit → harvest pulls back & repays debt. Institutional allocates to institutional‑grade sources via bridge, returns profit periodically. Harvest profits repay debt first (if any), then increase WcBTC collateral → NAV rises → user’s vault tokens are worth more cBTC.

Solution

Literally , this idea when I announced on twitter and got backed by Citrea . I was very happy but not knowing I am going to make such deep down liquid yield bearing project on Citrea. I spen one day just to sit on calculations and mathematics of how I will generate the high Yield. One more day I need just to figure put how I can cross-chain use the Bitcoin liquidity to get the high yield and institutional back assets. All summary it was fun, hectic but finally learnt some more awesome things in this DeFI project. I am going to move ahead with this project to work on more strategies to get High Yield. Thank YOu.