> For the complete documentation index, see [llms.txt](https://docs.btcd.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.btcd.fi/technical-documentation/composability-patterns.md).

# Composability Patterns

Several DeFi patterns are particularly well-suited to the BTCD/sBTCD model:

* Looping: deposit sBTCD as collateral, borrow BTCD, swap for more sBTCD, repeat. This is mechanically similar to looping sUSDe/USDe.
* Yield splitting: tokens like bdUSD and bdBTC are natural inputs for Pendle, allowing users to separate fixed yield from variable yield.
* AMM liquidity: BTCD (the unstaked, non-appreciating version) is well-suited for AMM pools.

Carry trades: the sBTCD/BTCD pair is omega-matched (both have ω = 0.5) — borrowing BTCD against sBTCD is one of the safest collateralized loan structures available in DeFi, since the collateral and debt move together with BTC price.