Bitcoin yield hunters have a new vault option in the form of Acre, with an initial APY estimated at around 14%, autocompounding into tBTC.
Achieving these anticipated return targets will be heavily dependent on DeFi incentives and will be accompanied by a built-in two-week buyback window.
The goal is to eliminate the complexity of generating yield on Bitcoin, according to Laura Wallendal, CEO of Acre.
“Our first strategy was organized by Re7 Labs and presented to the Acre Security Council,” Wallendal told Blockworks, describing a BTC-in/BTC-out wrapper that connects deposits to Threshold Networks’ tBTC on Ethereum and then deploys the capital into on-chain locations.
For now, 100% of the yield will be generated using tBTC on Ethereum, through activities such as lending, liquidity provisioning in DeFi and staking, although a portion of the assets may be linked to other networks (such as Starknet) to participate in specific campaigns.
Source: Cinder Block Research
So, for example, tBTC will be provided as collateral to borrow stablecoins, which will then be deployed in Re7’s Morpho vaults.
All returns from native and token incentives are paid back into the overall vault rate, denominated in BTC.
“The majority of this yield comes from other tokens, across different chains and protocols… these must be sold for tBTC,” Wallendal said.
Withdrawal requests will be honored on a two-week redemption schedule, to allow risk custodians to actively manage the unwinding of DeFi positions responsibly and to discourage rapid entries and exits during periods of volatility.
Acre is first limiting its capacity and plans to deploy multiple custodian-managed vaults, aiming to keep yields high even as the bitcoin provided increases. The initial cap for the first vault was 5 BTC, and will soon be increased to 50 BTC. The long-term capacity target for the Re7 strategy is “around 200 to 300 million,” Wallendal said.
Midas provides algorithmic infrastructure and 24/7 portfolio monitoring. Wallendal added that a “kill switch” can withdraw funds from strategies to a splitter contract, maintained by a 3 of 9 multisig, for user redemption only in the event of a serious problem.
14% may seem like a lot, but Wallendal defined Acre’s goal as sustainable, risk-weighted returns rather than chasing the richest shows. “We are not looking for the most degenerate returns,” and said a long-term goal is “above 5% overall APY.”
This would bring it in line with competing options for bitcoin returns – a crowded and rapidly changing field. Bitcoin staking through Babylon has stalled and, like many sites, is paying non-BTC incentives alongside a new risk surface. Bitcoin L2 ecosystems like Stacks (via sBTC), Hemi, and Botanix offer alternatives, each with their own transition solutions. In principle, Acre could deploy across all of these chains, alongside strategies like providing liquidity to the Lightning Network.
In all cases, the end user deposits assets directly from a Bitcoin wallet via L1 and withdraws them to Bitcoin.
In terms of surveillance, Acre relies on a nine-member Security Council which sets deployment policy and reviews curators and strategies.
Board members are not disclosed, but “there are nine independent members,” Wallendal said, and “only one from the Acre team.” Risk curators do not sit on the board, she added, to limit conflicts of interest.
Acre chose Threshold Network’s tBTC due to its strong track record, decentralization, and ties to the founding team.
The vault largely competes with centralized exchange-based “earning” products, which are easy to use but introduce counterparty risk and often offer only modest BTC returns unless combined with structured products. Acre’s differentiation lies in the promise of on-chain transparency, balanced by the risks of bridges, smart contracts, and reliance on incentives.
Wallendal knows the crypto-native public will scrutinize these tradeoffs. “We look for sustainability and risk-weighted returns,” she said. “I’m convinced that people will enjoy this experience,” although risk-averse people need time to become familiar.
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