Earning yield on your Bitcoin (BTC) holdings no longer means giving up control or relying on centralized intermediaries. With the rise of decentralized finance (DeFi) on Bitcoin’s layer-2 network, Rootstock (RSK), users can now generate passive income directly from their BTC in a trustless, transparent, and secure environment.
One of the leading platforms enabling this is Sovryn, a non-custodial DeFi ecosystem built natively on Bitcoin. Sovryn empowers BTC holders to earn yield through multiple innovative mechanisms: lending, liquidity provision, and its latest offering — the Sovryn Money Market.
Whether you're a long-term holder looking to optimize returns or an active participant in DeFi, Sovryn provides flexible, permissionless ways to put your Bitcoin to work — all while maintaining full ownership of your assets.
How to Earn Yield on Bitcoin via Lending
Lending is one of the most straightforward ways to generate yield on your Bitcoin. On Sovryn, this process is fully decentralized and operates through lending pools.
👉 Discover how to start earning yield on your BTC today.
Here’s how it works:
You deposit your BTC into a lending pool, where borrowers can take out loans by providing overcollateralized assets. In return, you earn interest paid in BTC, with yields fluctuating based on supply and demand within each pool.
Before getting started, you’ll need to convert your BTC to RBTC — the 1:1 pegged version of Bitcoin on the Rootstock blockchain. This conversion is seamless and allows your Bitcoin to interact with smart contracts on RSK.
To begin lending:
- Navigate to the ‘Earn’ tab in the Sovryn app.
- Select ‘Lend’ and choose the BTC lending pool.
- View real-time data including available liquidity, utilization rate, and current APY.
- Enter the amount you wish to deposit.
- Confirm the transaction, paying a small network fee in RBTC.
Once deposited, your funds start earning interest immediately. A key advantage of Sovryn’s lending model is no lock-up periods — you can withdraw your Bitcoin at any time, provided the pool has sufficient liquidity.
If demand for borrowing is high and liquidity tight, interest rates will naturally rise to incentivize repayments, freeing up capital for withdrawals. This dynamic mechanism ensures both lender flexibility and system stability.
Boost Returns Through Liquidity Provision
For users willing to take on slightly more complexity — and risk — liquidity provision offers another powerful avenue for earning yield on Bitcoin.
By contributing assets to automated market maker (AMM) trading pools, you enable seamless trading and earn fees from every transaction that occurs in the pool. On Sovryn, many pools involve RBTC paired with other RSK-based tokens, such as SOV or stablecoins.
Most pools operate on a 50/50 ratio, meaning you must deposit equal dollar values of two different tokens. For example, if you want to provide liquidity in the RBTC/SOV pool, you’ll need both RBTC and SOV in balanced amounts.
Here’s how to get started:
- Go to ‘Earn’ > ‘Market Making’ in the Sovryn dApp.
- Choose a pool based on your risk appetite and reward potential.
- Input the amount for one token; the required amount of the second token is auto-filled.
- Review fees, historical APY trends, and liquidity depth.
- Confirm your deposit.
While liquidity provision can deliver higher returns than simple lending, it comes with a unique risk known as impermanent loss (also called divergence loss). This occurs when the price of one asset in the pair shifts significantly relative to the other, causing your portfolio value to deviate from simply holding the assets.
However, Sovryn mitigates some of these risks through balanced pool designs and frequent rebalancing incentives.
Additionally, Sovryn often runs promotional campaigns that offer bonus rewards in SOV, the platform’s native governance token. These rewards are distributed weekly and can significantly boost overall returns.
Introducing the Sovryn Money Market
Sovryn has recently launched its decentralized money market, a next-generation DeFi product designed specifically for Bitcoin holders seeking predictable, sustainable yields.
This new feature allows users to deposit BTC-backed assets — such as FBTC, WBTC, or TBTC — into a dedicated market where borrowers can access liquidity by posting overcollateralized positions.
What sets this apart?
- Predictable APY: Sovryn targets a consistent yield range of 4.5% to 6.5%, paid directly in BTC.
- No lock-ins: Funds can be withdrawn at any time, subject to liquidity availability.
- Overcollateralization: All loans require borrowers to post more value than they borrow, protecting lenders even during volatile market conditions.
- Bonus incentives: Users may qualify for additional rewards through ongoing promotions.
The money market is particularly attractive for conservative yield seekers who want exposure to DeFi without excessive complexity or impermanent loss risks.
It represents a major step forward in making Bitcoin a truly productive asset within decentralized finance — not just a store of value, but an income-generating one.
👉 Learn how decentralized finance is transforming Bitcoin yields.
Frequently Asked Questions (FAQ)
Can I earn yield on BTC without selling it?
Yes. Through Sovryn’s lending and liquidity provision features, you can earn passive income on your Bitcoin without giving up ownership. Your assets remain under your control at all times.
Do I need to lock up my Bitcoin to earn yield?
No. Sovryn does not impose mandatory lock-up periods. You can withdraw your funds whenever needed, assuming sufficient liquidity exists in the pool.
What is RBTC and why do I need it?
RBTC is the native token of the Rootstock network — a 1:1 representation of Bitcoin used to pay gas fees and interact with smart contracts. You must convert BTC to RBTC to use Sovryn’s DeFi services.
Is there risk involved in providing liquidity?
Yes. While rewarding, liquidity provision exposes you to impermanent loss, especially in volatile markets. Always assess price correlation between paired assets before depositing.
How are yields paid out?
Lending and money market yields are paid in BTC (or BTC-denominated assets), while liquidity providers earn trading fees in the respective pool tokens. Promotional rewards are typically paid in SOV.
Can I use hardware wallets with Sovryn?
Absolutely. Sovryn supports integration with popular hardware wallets like Ledger and Trezor, ensuring maximum security for your private keys.
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Sovryn is redefining what it means to hold Bitcoin in 2025 — transforming it from a static asset into an active participant in decentralized finance.
With flexible options for earning yield through lending, liquidity provision, and its innovative money market, Sovryn offers something for every type of Bitcoin user: from cautious savers to experienced DeFi participants.
And because everything runs on Bitcoin’s own layer-2 network via Rootstock, security and decentralization remain top priorities.
👉 Start maximizing your Bitcoin’s earning potential now.
By combining accessibility with powerful financial tools, Sovryn proves that true financial sovereignty isn’t just possible — it’s already here.