Today we launch the USDC Savings Vault!
USV brings users a way to passively earn premium yields on their USDC. Powered by Notional, our first vault is setting the standard for interest-earning products on DeFi.
USV is the smartest way to put your money to work.
Let’s dive in!
Why we built USV
Decentralised finance (DeFi) offers investors the opportunity to take control of their finances and generate yield on their crypto assets. However, navigating yield opportunities in DeFi is far from simple.
It is challenging for investors to know where to deploy these assets to generate competitive returns, often coming across obstacles such as:
- High gas fees
- Complexity of entering and exiting maturities
- Volatile interest rates
- And assessing uncertain risks.
These obstacles drive most users to park their stablecoins into one continuous tenor, therefore generating lower yields on their capital.
To top that off, the majority of the 1.5 million USDC holders don't put their capital to work, missing out on substantial financial opportunities.
USV changes that.
USV makes earning interest on stablecoins simpler and more competitive than ever before in DeFi.
The USDC Savings Vault (USV) is the first product of a new interest-earning product line from Phuture. Each vault allows users to deposit a certain crypto asset and earn interest. For USV, users deposit USDC.
USV is powered by Notional, the top DeFi protocol for fixed rate lending and borrowing.
Why deposit into USV?
It’s recommended that every crypto portfolio has a portion allocated in lower-risk, highly liquid assets. The reasons for that are:
- It reduces the risk and volatility.
- It ensures there is cash available to take advantage of investment opportunities
- Allows uses to pay down debts
- or use for any other purposes.
However, these low-risk, liquid assets should not be sitting in a continuous, low-yield tenor. DeFi users needed a better option.
Capital should be generating the most competitive returns, so we’ve built USV to be the smartest way to put USDC to work.
How does it work?
USV offers investors competitive yields on their USDC without the complexities of active management and gas expenses, bringing together the very best of DeFi:
- Transparent yield
- Access to your capital at any time.
USV offers an optimised interest rate by investing into a blend of three and six month bonds, powered by the Notional protocol. It dynamically rolls capital into the next maturities, removing the cost and complexity of management from users.
Benefits of depositing USDC into USV
- Borrowers are willing to pay a premium to borrow USDC at a fixed rate. We pass this onto USV investors to offer them yields several percent higher than the variable rate lending platforms. See current APRs here.
Access your USDC anytime:
- USDC Savings Vault is a decentralised, on-chain product. You can withdraw and redeem USV for USDC regardless of the market conditions.
Suitable for all investors:
- USDC Savings Vault supports high deposit volumes with little impact on rates. It provides low entry costs, with no minimum investment or preferential treatment.
Fending off inflation:
- In a time of inflation rising at an unprecedented rate, USV enables holders to make the most of their USDC, which is pegged to the United States dollar.
In addition, the safety of the funds held in the USDC Savings Vault is our top priority and every piece of the investment stack has been thoroughly audited. Notional is the largest and most tested fixed rate lending protocol on Ethereum supporting a loan book of close to $1bn at its peak.
The bonds that USV invests into are all over collateralised to ensure the certainty of repayment.
Generating competitive yield on USDC has never been better!
Phuture (PHTR) is a decentralised protocol that allows users to gain passive exposure to crypto assets. With leading index products built on Ethereum and Avalanche, Phuture is at the forefront of innovation in crypto passive investing. Phuture has a global team and community to support and grow its mission.
Notional is the first decentralized, Ethereum-based protocol for borrowing and lending at fixed rates and fixed terms. With variable rate lending, DeFi can only serve a small segment of the crypto lending market because variable interest rates don’t provide the certainty that lenders and borrowers require. Notional fixes this by creating a true market for lenders and borrowers that empowers individual investors, business owners and institutional investors.
To find out more, follow Notional on Twitter and check out the website to learn more.