Phuture, a passive income DeFi protocol, has partnered with Notional, a leading DeFi protocol for fixed income and lending. As a result of the collaboration, Phuture has launched its latest yield farming product, USV (USDC Savings Vault), which promises best-in-class returns. Users can store cryptocurrency in a vault and earn interest on their holdings.
Phuture’s UPS and the Relevance of Notional Partnership
Investors can earn interest on their assets in USV, an ERC-compliant ERC-4626 vault that uses Circle’s USDC stablecoin as collateral. To earn passive profits, customers can place crypto assets in the savings vault. In DeFi, a vault represents an automated smart contract that produces returns. The smart contract automatically allocates capital to the investments expected to generate the highest return, saving the investor the trouble of doing so.
Notional is an Ethereum-based platform that allows cryptocurrency lending and borrowing at set interest rates. UPS effectively holds a collection of notional bonds of varying maturities and fixed interest rates. Investors can withdraw their money whenever they want after making an initial investment. Unlike interest rates on loan methods, which can fluctuate over time, interest rates on loans and advances remain stable.
Users’ funds are not “locked up” when they lend on Notional, but their interest rate is guaranteed to maturity. Three different stablecoin maturities are available on the platform: three months, six months, and one year, and maturities are renewed every three months.
Phuture (PHTR) is an automated thematic index fund platform built on Ethereum and Avalanche that streamlines the investment process. The Phuture app allows investors to convert their USDC into UPS and earn vault shares in return. In the same way that users can access their assets at any time, users can also withdraw their assets from any Phuture product running on the blockchain.
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