> ## Documentation Index
> Fetch the complete documentation index at: https://docs.gomaestro.org/llms.txt
> Use this file to discover all available pages before exploring further.

# How myBTC works

> The engines, lifecycle, and mNAV mechanics behind yield-bearing Bitcoin.

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myBTC is **yield-bearing Bitcoin**, built for Bitcoiners and Bitcoin treasuries: one deposit puts capital to work across two engines — Mezzamine Credit + Bitcoin Solver — with no further action required. For the case behind the denomination, see [Why BTC-denominated](/mybtc/why-btc-denominated).

<Banner src="/images/mybtc-section-1.jpg" alt="A forested ridge emerging from thick mist" />

## The two engines

<CardGroup cols={2}>
  <Card title="Mining credit">
    Powered by [Mezzamine Credit](/yield-vaults/offerings/mezzamine-credit) — secured ASIC and hashrate loans to vetted miners, repaid from block rewards. This is myBTC's core yield engine.
  </Card>

  <Card title="Bitcoin liquid vaults">
    [Intent solver settlement](/yield-vaults/offerings/bitcoin-solver) and a liquid reserve blend into **2–6% BTC APY** — the instant liquidity that enables myBTC's flexible redemption, absorbing capital between mining-credit loan cycles.
  </Card>
</CardGroup>

<Note>
  All yield figures are **indicative BTC APY ranges**, not guarantees. Actual returns vary by
  program, market conditions, and counterparty. Figures are net of fees and
  BTC-denominated. Past performance is not indicative of future results.
</Note>

## The lifecycle

Deposit and redemption are always Bitcoin-denominated, and the allocation between the yield sources automatically rebalances as loan demand changes to maximize active yield generation:

<Steps>
  <Step title="Deposit BTC">
    Deposit native Bitcoin and mint myBTC 1:1 at the current mNAV.
  </Step>

  <Step title="Blended allocation">
    Capital splits across the two engines — mining credit and liquid vaults.
  </Step>

  <Step title="Dynamic rebalance">
    Allocation rotates toward mining credit as loan demand rises, and back toward liquid yield when it doesn't — capital stays productive either way.
  </Step>

  <Step title="Redeem to BTC">
    Burn myBTC for Bitcoin at the accrued mNAV — redemptions are serviced from the liquid engine's instant liquidity.
  </Step>
</Steps>

<Note>
  The [custody option](/concepts/hybrid-custody) chosen at deposit holds through redemption; available options depend on the vault.
</Note>

## mNAV: how value accrues

mNAV is the single number that expresses myBTC's value in Bitcoin: no rebasing, no separate yield token, **one exchange rate** that moves as the pool earns.

<Info>
  **mNAV** (mining net asset value) is the exchange rate tracking the net asset value of the pool backing myBTC. As the pool earns yield, mNAV appreciates each epoch, so a fixed amount of myBTC is redeemable for more BTC over time.
</Info>

A myBTC balance never changes on its own. Value accrues entirely through the exchange rate:

* **Deposits mint at the current mNAV.** BTC in, myBTC out.
* **Redemptions burn at the current mNAV.** myBTC in, BTC out — yield earned since deposit is captured automatically.
* **Distributions auto-compound.** No payouts to collect; yield is reflected directly in mNAV.
* **Positions are transferable.** myBTC can change hands on secondary markets — an exit route independent of vault redemption, priced against mNAV.

myBTC holds to a **single-token model** — yield accrues directly to the token held, with no separate yield token to manage.

## Oversubscription

When deposits exceed available Mezzamine loans, the excess flows into the liquid vaults rather than sitting idle; as new mining loans open — typically at a higher BTC APY — capital rotates back into mining credit. Every deposited BTC stays deployed, and the blended rate tracks the current mix.

myBTC blends the two engines into one position rather than requiring separate allocations to each vault in the [directory](/yield-vaults/vault-directory). For where the underlying yield comes from, see [how yield is generated](/concepts/yield-generation).