Atomic Finance: Earn Yield on your bitcoin

Atomic.Finance is a Toronto-based startup, building an app for bitcoiners to earn a yield on their BTC while holding onto their keys. Made possible using covered calls, and DLCs.

How it works

DLCs (discreet log contracts) are a form of Bitcoin-native smart contract that can represent financial instruments between counterparties, such as options, futures, or bets. They are structured similarly to a 2-of-2 multisig, but with the addition of an oracle. Like an app that calls an API to fetch data, DLCs rely on an oracle to retrieve real-world data and determine the contract payout, such as the result of the Super Bowl or the price of Bitcoin.

A covered call is a transaction where an investor sells call options on an asset they already own (in this case, bitcoin), and earns a BTC premium in return for doing so.

Atomic also offers a 'passive investment' strategy, based on monthly options positions.

Currently, Atomic.Finance charges an 8% fee on the premiums of each covered call position taken within the strategy offered.