Bitcoin News Today: Acre Solves Bitcoin's Yield Dilemma: 14% APY with Full Control

Acre, a Bitcoin-focused platform, has launched its V2 platform, offering Bitcoin holders the opportunity to earn an estimated 14% annual percentage yield (APY) while maintaining self-custody of their assets. The platform automates onchain yield generation through Ethereum-based DeFi strategies, converting all rewards back into Bitcoin to eliminate exposure to alternative tokens, according to Cryptopolitan. This innovation addresses a growing demand among Bitcoin holders, with 73% expressing interest in earning yield, though many are deterred by complexity and trust concerns.

The Acre platform operates by bridging Bitcoin to Threshold Network's tBTC on Ethereum, where it deploys capital into lending, liquidity provision, and staking activities, as a Blockworks report explains. All yield—both native and token-based—is converted to tBTC and reinvested automatically, compounding returns for users. Withdrawals are subject to a two-week redemption window to allow risk curators to manage DeFi positions responsibly during volatility. The first vault, curated by Re7 Labs and supported by Midas' infrastructure, caps initial capacity at 5 BTC, with plans to scale to 50 BTC and eventually $200–300 million in assets under management.

Acre's Security Council, comprising nine independent members from firms like Lido, Anagram, and LedgerPrime, oversees strategy vetting and risk management, and the governance model aims to balance transparency with security, as users retain full control of their Bitcoin at all times. Laura Wallendal, Acre's CEO, emphasized the platform's focus on "sustainable, risk-weighted returns" rather than chasing high-yield DeFi opportunities. The first vault's estimated 14% APY is competitive with centralized exchange offerings but introduces onchain transparency and a "kill switch" mechanism—a 3-of-9 multisig contract—to safeguard user funds in emergencies.

The platform's launch aligns with broader trends in Bitcoin finance (BTCFi), where projects like Stacks and Babylon are also exploring yield generation. However, Acre distinguishes itself by prioritizing BTC-in/BTC-out workflows and institutional-grade risk management. Evgeny Gokhberg of Re7 Capital noted that the collaboration advances "institutional DeFi infrastructure," expanding access to Bitcoin yields within Ethereum's ecosystem.

Market adoption remains cautious, as 40% of Bitcoin holders would allocate less than 20% of their holdings to BTCFi products due to trust and complexity concerns. Acre's approach, combining self-custody with automated compounding and Security Council oversight, seeks to alleviate these barriers. Dennis Dinkelmeyer of Midas highlighted the importance of "responsible partnerships" in building user confidence for onchain financial products.