# Native BTC Yield Strategies

Stroom brings native yield on Bitcoin holdings and provides a liquid token, `strBTC`, to simultaneously earn in DeFi. Stroom will gradually integrate low-risk BTC native reward sources such as:

* Lightning Network node(s)
* BitVM2 node operator fees
* BTC L2 node operator fees
* Atomic Swap bridges for BitVM2 networks
* Any other BTC low-risk yield-generation strategy that can scale

To enable yield generation, a portion of the BTC held in the bridge’s multisig wallet is allocated to supported native Bitcoin strategies. This movement is governed by a secure and transparent process, involving multisig signers and automated routing logic based on predefined risk parameters and yield targets. Funds may be delegated to Lightning nodes, BitVM2 or L2 node operations, or other whitelisted yield sources.

When required—such as for redemptions, rebalancing, or yield harvesting—funds are programmatically or manually withdrawn from these strategies back into the bridge multisig wallet. This ensures liquidity availability for `strBTC` redemptions and maintains the integrity of the 1:1 BTC backing. The process is auditable and designed to prioritize capital safety, with real-time visibility into allocation and reserve levels.

To ensure full transparency and verifiability, the protocol will incorporate a **Proof-of-Reserves oracle** that continuously monitors and reports the BTC backing `strBTC` in circulation. This oracle will validate that all minted `strBTC` is fully collateralized by BTC held either in the bridge multisig or in approved, yield-generating strategies—providing users and stakeholders with real-time assurance of solvency and reserve integrity.


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