At the core of our product is our automated algorithm, which is a complex system that’s designed to tackle difficult issues and make profitable investment decisions so our users can earn competitive yields. The automated algorithm will maximize profit while using the list of yield-farming strategies available that our Intelligence and Quant teams have created.
Coinchange utilizes a centralized, off-chain communication mechanism to interact with the smart contracts that run and power our supported DeFi protocols. This is made possible through our proxy smart contracts, which merge execution logic into one transaction, effectively lowering overall transaction fees and making them less prone to front-running.
Once we’ve identified the best protocols to work with, the yield generation process begins. DeFi users incur fees for engaging in transactional activity on the selected protocol - these fees are then distributed to protocol stakeholders for engaging with the protocol.
As the fees continue to accrue from increased volume and usage on the protocol, Coinchange takes the revenue earned from fees and provides you with a consistent yield on a daily basis. This process continues as your interest starts to compound, meaning your portfolio is being supplied with a recurring source of passive income.
Contrary to most of our competition, we provide passive income to users via DeFi protocol revenue. We don’t lend our users funds to institutions that will trade and make big financial plays, and we also don't use them algorithmically to generate yield. Fairness and transparency are the cornerstones of our business model.