DOLLAR YIELD: Low risks, differentiated return.
Understand how it works and find out if it is a good investment option for you.
With the appreciation of some currencies on the market in recent times, crypto-assets, representations of values that exist in digital records, have attracted more and more investors, especially young people, to this universe.
Digital currencies have existed for more than ten years, but until very recently, the topic was only a subject among small groups of people, when it had not yet reached the general public.
As the interest in investment has increased, so has the demand for knowledge that could help these new investors understand the market and make buying and selling decisions in this digital reality.
Always seeking to narrow the access channel and break the barrier of insecurity in crypto-active investments, we decided to explain more about one of our main solutions in the market: Dollar Yield.
Despite being a low-risk investment, many assume that Dollar Yield’s return is in the same proportion. When in fact, besides having an attractive risk strategy, the investment is also capable of obtaining a differentiated return.
Want to know more about our product? Continue reading this article!
DOLLAR YIELD | HOW DOES IT WORK?
Dollar Yield is a crypto-protocol that represents a stablecoin paired to the US$, i.e., 1 USDY = US$1. The big difference between this and other stablecoins on the market is that it generates a passive income for the simple fact of owning it. That is, every month the token’s owner receives in his Uniera account the income generated by the protocol.
Using operations traditionally known in the crypto market as Margin Lending, the Dollar Yield protocol remunerates USDY token holders with fixed income in dollars. Besides getting exposure to the variation of the US dollar, with the USDY token, you get a fixed return of 10% per year.
DOLLAR YIELD | HOW ARE THE YIELDS?
The percentage of yield varies over time, as the projects of the Defi market — of decentralized finance — manage to remunerate the capital, but in general, the numbers are always much higher than those of the traditional financial market with the same low risk.
Currently, Dollar Yield is remunerating the investment in fixed percentages of 10% a year, but in US$. And it is through operations, known in the crypto market as staking or Margin Lending, in which the protocols eliminate any intermediaries and, that, presents the algorithm that remunerates the borrowed capital with much more attractive rates, that this remuneration is obtained.
And most importantly, with almost zero risk, very similar to the risk of a fixed income investment.
DOLLAR YIELD | HOW DOES THE ALLOCATION STRATEGY WORK?
According to information extracted from the Dollar Yield protocol White Paper, most of the resources invested by the USDY are allocated in Margin Lending operations, which operate without risk and guarantee the main party the passive form. While the smaller portion operates in safe farming and arbitrage strategies, which seek to guarantee above-market returns.
The use of highly leveraged short-term positions is very popular in the crypto market, but brings interest rates typically much higher than those found in the traditional financial market. In traditional finance, these practices are also common, however, large institutions are the only parties operating on both sides of the loan portfolio. Although the strategy involves apparent complexity, the Dollar Yield token investor has a positive exposure, with extremely low risk
DOLLAR YIELD | HOW ARE THE RISKS?
Due to a few factors, the risk of this type of operation is minimal.
First factor: In order to borrow capital in the crypto medium, it is necessary to deposit collateral of at least 150% of the amount borrowed. If there is any price fluctuation between borrowed capital and collateral, this collateral is automatically liquidated by the protocol to ensure the safety of the loan.
Second factor: There is no risk concentration in an intermediary agent, such as a bank or financial institution, that is, there is no risk of bankruptcy or liquidity of the financial agent, because it is a protocol that automates the management of the capital pool allocated in blockchain.
Third factor: In addition, in order to secure the capital against any type of hacking or systemic error risk, the Dollar Yield protocol has contracted insurance that guarantees all the principal capital allocated in the protocol.
Fourth factor: Still to give more security and transparency to the protocol, Dollar Yield has all its operations and management audited by Grant Thornton, one of the largest and most respected audit firms in the world.
DOLLAR YIELD | DISRUPTIVE AND REVOLUTIONARY SOLUTION IN THE CRYPTO MARKET
Created with the premise of bringing to its clients access to the most innovative and disruptive solutions available, Uniera always seeks to deliver highly sophisticated products in a simple and accessible way to everyone.
For this reason, among the many projects studied by Uniera, is Dollar Yield. Especially for Brazil, which has a more fragile currency and high inflation rates, this product is even more attractive.
Dollar Yield is a transformative product, because besides presenting a low risk, it yields much higher rates in dollar than any other equivalent product in the world financial market.
In our work, we always seek to create innovative solutions for participation in the growing crypto universe. And Dollar Yield is one of the most disruptive projects that we present in our portfolio.
With an operating mechanism that brings fixed return, 10% per year, much higher than traditional financial market products and through a strategy known in the crypto market as Margin Lending, Dollar Yield explores the options available in this universe with very low risk. Did you find out if Dollar Yield is a good investment option for you? To invest, simply login and register on our platform.
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