APOLLO Custodian
Last updated
Last updated
This section outlines strategies to maximize the utility of zBTC within the system. While zBTC is owned by liquidity providers (LPs), it is managed by APOLLO to optimize operational efficiency and facilitate yield generation. APOLLO's role as a custodian ensures streamlined management and maximized returns.
By default, zBTC is stored under APOLLO's custody; however, LPs have the option to retain their zBTC independently, though this will forgo earning rewards.
To qualify for yield generation, two conditions must be met:
BTC must be locked in the Cold Reserve.
zBTC must remain in APOLLO's custody.
*Note: The yield mechanism is scheduled to launch in Q1 2025.
In this scenario, APOLLO acts as a custodian, enabling liquidity providers (LPs) to earn yield while ensuring efficient withdrawal processes. Withdrawal requests are handled seamlessly, and if liquidity is temporarily insufficient, the requests are scheduled on-chain for future processing, ensuring transparency and reliability.
In this scenario, APOLLO does not act as a custodian, allowing liquidity providers (LPs) to retain full control over their zBTC. While LPs forgo earning yield, they retain the flexibility to withdraw their zBTC at any time. To retrieve native BTC, LPs are required to repay and burn the corresponding amount of zBTC, ensuring a seamless and transparent redemption process.
