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TVL $38MAPY 0.48%low riskUpdated Jan 15, 2025

Uniswap V3 WBTC/cbBTC 0.01%

Wrapped Bitcoin pair concentrated liquidity pool enabling efficient swaps between WBTC and Coinbase cbBTC.

ProtocolUniswap V3
Networkethereum
SymbolWBTC/cbBTC
CategoryConcentrated Liquidity
Underlying Assets
WBTCcbBTC
Contract Address0xe8f7c89c5efa061e340f2d2f206ec78fd8f7e124

What is This Pool?

This Uniswap V3 pool facilitates trading between two wrapped Bitcoin tokens - WBTC and Coinbase Wrapped BTC (cbBTC) - on Ethereum mainnet. The 0.01% fee tier enables extremely efficient conversions between these Bitcoin representations.

Understanding Wrapped Bitcoin Variants

WBTC (Wrapped BTC):
  • Launched 2019, the original wrapped Bitcoin on Ethereum
  • Custodied by BitGo consortium
  • Widely integrated across DeFi protocols
  • Largest wrapped BTC by market cap
cbBTC (Coinbase Wrapped BTC):
  • Coinbase's wrapped Bitcoin product
  • Backed 1:1 by BTC held at Coinbase
  • Benefits from Coinbase's regulatory compliance
  • Growing DeFi integration

Why This Pair Matters

BTC-to-BTC swaps serve important functions:

  • Arbitrage keeping both tokens at parity
  • Protocol preference conversions (some DeFi prefers one variant)
  • Custodial risk diversification
  • Liquidity routing optimization

Ultra-Low Fee Tier Logic

The 0.01% tier is appropriate because:

  • Both assets should trade at 1:1 relative to underlying BTC
  • Minimal price divergence expected
  • High-volume arbitrage activity
  • Capital efficiency maximized with tight ranges

Concentrated Liquidity Strategy

For BTC/BTC pairs:

Near-Parity (0.999-1.001): Maximum efficiency for stable parity. Risk if either token faces issues. Moderate Range (0.995-1.005): Buffer for temporary fluctuations while maintaining strong efficiency. Conservative (0.99-1.01): Protection against larger deviations during stress events.

Custodial Risk Comparison

Each wrapped BTC carries different risks:

  • WBTC: BitGo consortium custody, longer track record
  • cbBTC: Coinbase custody, stronger regulatory position
  • Both require trust in custodians holding underlying BTC

Pool Metrics

With $37M+ TVL and 0.48% APY:

  • Significant depth for wrapped BTC conversions
  • Lower yield reflects lower risk profile
  • Volume driven by arbitrage and protocol routing
  • Capital preservation focus

Risks

  • Depeg Risk: If either wrapped BTC faces issues, concentrated positions suffer
  • Custodial Risk: Both tokens depend on centralized custodians
  • Smart Contract Risk: WBTC, cbBTC, and Uniswap V3 contracts
  • Regulatory Risk: Wrapped assets may face future regulatory scrutiny
  • Gas Costs: Ethereum mainnet transaction expenses

Related Concentrated Liquidity

Uniswap V3 UXLINK/USDC 1%4.46% APYUniswap V3 Keeta/WETH 0.3%0.00% APYPancakeSwap V3 USDT/DUSD 0.01%0.04% APYUniswap V3 WETH/USDT 0.3%8.90% APYPancakeSwap V3 USDT/RZUSD 0.01%0.02% APY
Disclaimer: APY and TVL figures are based on on-chain data and may fluctuate. Past performance does not guarantee future results. DeFi investments carry smart contract, market, and liquidity risks. This content is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing.

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