APOLLO Custodian

This section outlines strategies to maximize the utility of $zBTC within the system. Owned by liquidity providers (LP), $zBTC is managed by APOLLO for efficient management and yield generation. The decision for APOLLO to serve as a custodian is driven by enhanced operational efficiency.

By default, $zBTC is stored in custody but LPs can choose to keep their $zBTC without earning rewards.

However, earning yield requires two conditions:

1. $BTC locked in the Cold Reserve

2. $zBTC stored in custody by APOLLO

Case 1 - Allocate with APOLLO Custodain

• In Case 1, APOLLO serves as custodian, enabling LPs to earn yield and facilitating streamlined withdrawals. Withdrawal requests are scheduled on-chain if liquidity is insufficient.

Case 2 - Allocate without APOLLO Custodian

• In Case 2, without APOLLO as custodian, LPs don't earn yield but can withdraw $zBTC. To retrieve native $BTC, LPs must repay and burn the $zBTC.