Intro of DeFi Smart Pool Product
Matrixport selects high-quality DeFi(decentralized finance) projects to help you conduct liquidity mining.
You can deposit your fund and withdraw it with revenue at any time, enjoy hourly compounded interest, and receive the high return from the best DeFi projects. Your invested funds will directly (or used as collateral for borrowing stablecoins to) be invested in third-party DeFi projects, including YFV (yfv.finance), CURVE (curve.fi), SWERVE (swerve.fi), etc.
The platform will sell the mining proceeds on your behalf, and the revenue will be sent to your account in real-time.
Features:
(1) Deposit and Withdraw at Any Time:
It can be redeemed at any time after the investment, and the principal and revenue will be settled to your account in the real-time.
(2) Hourly compounded interest:
Interest is accrued hourly, and your principal and hourly interest will be reinvested in the next hour, enjoying hourly compounded interest revenue. The calculation of the current hourly interest is based on the previous day’s APY (annual percentage yield) announced by the platform. For example the APY announced on the previous day is 10% per annum (that is, the hourly interest rate is 0.00114%). If a user makes a new investment of 100USDT today, the interest from the first hour’s investment is 100*0.00114%=0.00114USDT, and the second hour’s investment principal is increased to 100+0.00114=100.00114USDT, based on which, the interest of the second hour‘s investment is accrued, and so forth.
(3) Selected High-yield DeFi Projects:
Matrixport will select high-yield DeFi projects and adjust positions in real time to strive for the maximum profit for you.
What Is Liquidity Mining?
"Liquidity mining" in the DeFi projects refers to the process of providing funds to third-party DeFi projects as required by their protocols to obtain mining revenue (including token assets, transaction fees and other related proceeds) provided by the project.
What Is a DeFi Smart Pool?
Matrixport will help users switch their funds from low-yield to high-yield DeFi projects for liquidity mining according to the real-time mining proceeds of third-party DeFi projects, to earn higher mining revenue for investors.
Supported Cryptocurrencies and Quota:
USDT/USDC: 100-1,000/per client
BTC: 0.01-0.1/per client
BCH: 0.5-5/per client
ETH: 0.3-3/per client
Crypto-backed Loan Description:
If your investment currency is BTC/BCH/ETH, your cryptocurrency will be used as collateral to borrow stablecoins (USDT/USDC) for DeFi mining. The required initial loan-to-value rate (LTV) of BTC pledge is 100%, and the interest rate is 10% per annum; The required initial LTV of BCH pledge is 83%, the interest rate is 12% per annum; the required initial LTV of ETH pledge rate is 90%, and the interest rate is 10% per annum.
Position Adjustment:
If your investment cryptocurrency is BTC/BCH/ETH, Matrixport will adjust the position based on the price of collateral every day. If the BTC price drops by 5% (BCH by 17% and ETH by 10%) or above, Matrixport will withdraw a certain amount of fund from the DeFi projects to keep the loan to value rate lower than required initial LTV. The withdrawal of funds from DeFi projects will have an impact on expected income.
Fees Details:
(1) You need to bear the gas fee, slippage loss, trading fee, loan interest and other fees charged by corresponding DeFi projects (if any).
(2) In addition, Matrixport will take 10% of your revenue as a service fee, and your actual annualized yield is displayed as “APY” on the product page.
For example, if you invest 100USDT for 7 days, after deducting the related fees in (1), your annualized rate of return is 50%, the service fee rate is 50%*10%=5% (annualized), and the 7-day service fee is approximately 100 *5%/365/24*24*7=0.096USDT.
What Is the Risk?
The products are subject to the risks from the operation mechanism of DeFi (like Curve, YFValue, and Swerve) smart contracts, hacker attack, liquidity crisis and market volatility. Any possible loss or gain caused shall be borne by the investors.