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Earning Yield

One of BitChill's key features is that your stablecoins earn yield while waiting to be swapped. This page explains how yield generation works.

How It Works​

When you deposit stablecoins into a BitChill schedule:

  1. Your stablecoins are routed by the selected handler into a lending protocol (Tropykus or Sovryn)
  2. The handler receives lending tokens (kDOC, kUSDRIF, or iSUSD) and tracks your share internally
  3. The lending position accrues value over time as borrowers pay interest
  4. When purchases occur, the required stablecoin amount is redeemed from lending
  5. Your remaining position continues earning yield

Yield Accounting​

BitChill tracks your yield through the lending token mechanism:

ProtocolLending TokenHow Interest Works
TropykuskDOC, kUSDRIFExchange rate increases over time
SovryniSUSDAsset balance grows via interest

Tropykus (Compound-style)​

The handler tracks your position as a kToken balance (s_kTokenBalances[user]). The underlying stablecoin value grows as the exchange rate increases:

Underlying stablecoin value = tracked kToken balance × exchange rate

As exchangeRate increases, your underlying value grows.

Sovryn​

The handler tracks your position in iSUSD (s_iSusdBalances[user]). As Sovryn yield accrues, the redeemable stablecoin value of that position increases.

Principal vs Interest​

BitChill maintains a clear separation:

TypeWhat It IsHow to Withdraw
PrincipalYour original deposit minus purchaseswithdrawToken or delete schedule
InterestYield earned on your balancewithdrawAllAccumulatedInterest
Important

Regular withdrawals and schedule deletions do not automatically include interest!

Checking Your Interest​

Via the App​

The BitChill dashboard shows your accrued interest per token + lending protocol combination.

Via Contract​

getInterestAccrued(user, token, lendingProtocolIndex)

This returns the interest amount for a specific user and handler.

Withdrawing Interest​

Option 1: Interest Only​

Withdraw just the accrued interest while keeping your schedules active:

withdrawAllAccumulatedInterest(tokens[], lendingProtocolIndexes[])

Option 2: Combined Withdrawal​

Withdraw both principal and interest in one transaction:

withdrawTokenAndInterest(token, scheduleIndex, scheduleId, withdrawalAmount, lendingProtocolIndex)

Interest and Purchases​

Important clarification: Scheduled purchases only use your purchaseAmount, not your accrued interest.

For example, if you have:

  • Schedule balance: 1000 DOC
  • Accrued interest: 50 DOC
  • Purchase amount: 100 DOC

Each purchase swaps exactly 100 DOC for rBTC. The 50 DOC interest remains untouched and continues earning yield.

Expected Yields​

Yield rates are variable and depend on lending protocol utilization and market conditions.

Check live rates on:

Risks​

Yield generation involves inherent risks:

  • Smart contract risk: Lending protocol contracts could have vulnerabilities
  • Liquidity risk: During high demand, withdrawals might be delayed
  • Interest rate risk: APY can fluctuate significantly
  • Protocol risk: Lending protocol governance or technical issues

BitChill only integrates with established Rootstock lending protocols, but users should understand these risks.

Example Scenario​

Illustrative example only (not a forecast or guarantee):

  • Initial deposit: 1000 DOC
  • Purchase amount: 100 DOC weekly
  • Assumed fee: 1% flat (so 99 DOC net swapped each week)
  • Assumed lending APY: 8% (kept constant for illustration)
  • Assumed swap price: 1 BTC = 100,000 DOC (kept constant for illustration)

Under those fixed assumptions:

WeekPrincipalInterestPurchased rBTC
01000 DOC0 DOC0 BTC
1900 DOC~1.5 DOC~0.00099 BTC
2800 DOC~2.9 DOC~0.00198 BTC
4600 DOC~5.2 DOC~0.00396 BTC
100 DOC~8.5 DOC~0.00990 BTC

Real outcomes will differ based on live lending rates, fee settings, swap execution price, slippage, and timing.

Next Steps​