This was recently posted by the ren and uma teams.
Seems like they are teaming up to incentivise the launch of their uUSD yield dollar
A quick summary from the medium article
- Wrap your BTC into renBTC so that it is usable on the Ethereum blockchain. To mint renBTC from native Bitcoin, go to RenBridge. Or, you can purchase renBTC on an exchange.
- Use renBTC to mint uUSD tokens on the UMA protocol. Use http://tools.umaproject.org.
- Deposit uUSD and USDC into the Balancer pool to earn BAL, REN, and UMA tokens
Process to Leverage
Follow steps above, then use uUSD to purchase USDC in the balancer pool.
You can then swap your USDC for more renBTC, which will increase your exposure to the underlying asset of Bitcoin.
The only downside side I can see is that it uses renBTC and a renBTC vault was proposed earlier and had negative feedback so I’m just posting this here to see what people think before I think about writing a proposal to farm it.