Another week of Coinchange Early Access has passed, and we have more exciting announcements for our users.
This week we introduced a new token (USDT) for earning and made improvements to how we show APY in your Coinchange dashboard.
Plus, by popular demand, we've included a letter from our CSO, Vadim, outlining some of the intricacies of how we generate returns.
Check out the details of the changes below and enjoy the letter! See you next week.
Just last week it was listed in our brokerage, and already you can start earning yield on it. Time flies in early access!
Like we said last week, USDT is pegged to USD, so 1 USDT token is always valued at $1 USD. This protects them from the volatility that other coins experience.
You can invest in a USDT Earn account by depositing USD in one click.
Thanks to the feedback of some of our Early Access users, we are committing to updating APY daily in your account dashboard for the foreseeable future, so you can always check for an accurate picture of how your yield is doing.
Right now, both the USDC and USDT Yield accounts are currently generating 12% APY. Returns are based on protocol activity, which reached some lows in the summer months, but is on track to increase as we move into fall. Plus, we have some new additions to our strategy that will also boost APY.
We have developed quant strategies that provide aggregated liquidity provisioning and yield farming functionalities across different protocols and blockchain ecosystems. The goal is to create an environment where we can boost the earnings of the strategies by adding new DeFi protocols and combining these other functionalities easily and quickly.
We don't build one ultimate strategy that defines all choices, but rather a growing collection of techniques to achieve the best performance across them.
By doing all of this, we aim to achieve a stable competitive advantage in earnings where our WORST performance is equal or higher than the BEST performance of the BEST protocol we have connected.
Our top priority is risk management. We started with stablecoins to offer our clients the best earnings with minimal possible risks.
We separate risks into the market (volatility) and counterparty (protocols) risks. We build complex models to eliminate market risks and have built manual processes to analyze counterparty risks.
While we can't measure or predict counterparty risks, we can grade them by comparing them to each other. By doing so, we can estimate whether integrating new protocols will bring additional counterparty risk.
We will address risk management in further detail in an upcoming update.
We've created unique value for our users by combining automation techniques that:
As a result, we simply and efficiently offer full earning functionality for protocols we integrate with. Our resulting earnings are the same or better than the maximum earnings across connected protocols.
Check out our first Early Access update, where we talk about direct bank transfers and USDT.
Early Access members get 0% brokerage fees, plus a $40 sign-up bonus.