Phuture and Notional offer a touch of green to blood red crypto markets.
phuturea passive income generating DeFi protocol, has its new yield farming Product called “USV” (USDC Savings Vault) with “guaranteed” premium return.
UPS, a ERC-4626 compatible vault, uses Circle’s USDC stablecoin as underlying collateral, allowing investors to earn interest on their holdings.
A vault in decentralized finance (DeFi) represents an automated revenue-generating smart contract. Instead of manually moving money from different projects to look for the best yield, the smart contract does the hunting for you.
Investors can deposit their USDC with UPS Phuture app and receive vault shares representing their investment. Vault shares are automatically compounded and increase in value over time based on the return generated by the vault.
Phuture has a partnership with Fictitious, a fixed rate DeFi protocol to power its newly launched vaults. Per data from defi flameNotional has a total locked value (TVL) of $86.5 million as of this writing.
Source: DeFi calls.
Investors’ USDC deposits are used directly to purchase notional fixed income bonds. “To deliver a stable long-term return, we have partnered with Notional,” said Charles Storry, Phuture’s head of growth decrypt. “USV essentially holds a portfolio of fixed rate notional bonds of varying maturities.”
CEO and co-founder of Notional Teddy Woodward narrates decrypt the “When you lend on Notional, your principal is not “locked” but your interest rate is locked until maturity. We offer 3 month, 6 month and 1 year maturities for stablecoins and roll these maturities quarterly.”
If investors wish to get their capital back, the vault shares will be burned at a later date. The interest and collateral deposited are then returned to the investors.
UPS has no lock-up period for investors; payment can be made at any time after investment.
Fixed prizes for winning
A key benefit Phuture enjoys comes from Notional’s fixed rate lending protocol. Unlike variable-rate lending protocols like Aave and Compound, Notional’s lending and borrowing rates don’t change over time.
As of this writing, notional USDC bond yields (similar to Phuture’s USV yield) are 2.5% and 3.25% over three and six months, respectively.
“USV is not currently allocating capital outside of Notional’s platform,” Storry said decrypt “In another case, we are rearranging assets – when our bonds expire and need to be rolled over to the next maturity. UPS will always assign them to the highest yield term available on Notional.”
After Phuture, Woodward stated that Notional would also soon partner with Index Coop, another passive investing DeFi protocol, and SpoolFi, a customizable yield farming app.
Phuture (PHTR), the native token powering the protocol, is up a modest 2.56% over the past 24 hours to trade at around $0.02, according to data CoinMarketCap.
As of this writing, Phuture has a TVL of just over $520,000, according to data from defi flame.
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