Hemi Partners with Derive, STS Digital and Lagoon Finance to Launch a Yield-Bearing BTC Vault, Targeting 6% APY.

Bitcoin holders will soon have a new, institutional-grade way to put their BTC to work. Hemi is partnering with Derive, STS Digital and Lagoon Finance to launch the first hemiBTC options vault, targeting 6% APY; the first in a planned suite of structured products powered by this group of partners.

Derive is the largest decentralized options exchange, with more than $11B in notional volume already in 2026. STS Digital, which closed a $30M strategic round earlier this year, is one of the industry's leading options and structured products firms, providing liquidity across 400+ tokens. Lagoon Finance provides battle-tested vault infrastructure, supporting more than 120 vaults across 18+ chains and backed by 10+ published audits from Nethermind and Trail of Bits. Together, these partners will deliver institutionally scalable yield on the world's largest digital asset.

How It Will Work

Ahead of launch, hemiBTC has been enabled as collateral on Derive. The vault will run a debt-financed call overwriting strategy, combining three pieces of infrastructure to turn a single deposit into an actively managed options strategy:

Deposit on Lagoon: Users will deposit hemiBTC into the "Derive x STS hemiBTC Call Overwriting (coBTC)" vault on Lagoon Finance, where performance, positions and balances can be tracked in real time.

Bridge to Derive: The vault bridges hemiBTC to Derive L2.

Deploy the Strategy: On Derive, the hemiBTC is posted as collateral to run the call overwriting strategy, drawing on STS Digital's deep liquidity and options expertise.

Why It Matters

This vault is the first of several designed to open up access to institutional-grade yield, as part of a broader vision for a suite of structured products. Generating yield with options is a well-established strategy in traditional finance, but it has largely been limited to those with deep options knowledge, access to liquidity and the ability to manage risk around the clock.

These strategies have also traditionally run off-chain, leaving positions, collateral and performance opaque. hemiBTC is DeFi’s purest form of BTC, allowing for permissionless redemption to native BTC. This combination of partners will enable positions, collateral and NAV to be visible in real time, giving depositors round-the-clock transparency into how their BTC is being put to work.

The Strategy

The strategy earns yield by collecting premiums from overwriting calls. In the case of a large, short-term spike in the price of BTC, those options may be exercised. What makes this structure distinct is how exercised calls are handled: rather than selling the collateralized BTC, the strategy is debt-financed; obligations are covered in USDC, which keeps the vault's underlying BTC position intact.

Any outstanding financing is then repaid from future premiums first, with surplus compounding back into BTC holdings thus growing the size of user deposits. This structure preserves BTC inventory and offers higher return potential, with parameters adjusted to fit market conditions.