1. What is EARN, and how is it different from other DeFi services?
As the name implies, EARN is a new and unique way of generating cash flow from investing your cryptos. What makes it special?
- Competitive Returns: Rate of returns up to 10% APY.
- Hassle-Free: Allocate just one type of crypto and receive rewards in the native coin.
- No Counterparty Risks: No institutional partners are involved. Your funds are directly allocated on the blockchain.
- Market Volatility Protection: A volatility protection is put in place to protect users from market volatility and Impermanent Loss.
2. How often do I get rewards with EARN?
Users will receive their rewards every 24 hours.
3. In what crypto are the rewards paid out?
The rewards are paid out in the native coin of the investment. So, for example, if BTC is allocated, rewards will be paid in BTC.
4. What crypto can I allocate using EARN?
EARN can be used with either of the following cryptocurrencies:
- Bitcoin (BTC)
- DeFiChain (DFI)
- Decentralized USD (DUSD)
- USD Coin (USDC)
This service will be expanded to include other coins in the near future.
5. How exactly does EARN protect users from market volatility?
EARN has a volatility protection pool that aims to cover potential losses should crypto prices go down to address concerns about market volatility and how it may affect user funds.
Users get 1% coverage after every 24 hours of participation in the EARN product. Hence, the longer a customer is invested in EARN, the more extensive their coverage will become (for example, a user who allocates and keeps funds into EARN for 100 days will get 100% volatility protection on those same funds).
That said, it should be noted that the volatility protection is entirely dependent on the balance in the pool. This means that the coverage is not guaranteed even if a user achieves 100% coverage based on the above conditions.
6. How does EARN work?
The simplest way to explain how EARN generates returns is to describe it as a single-sided liquidity mining service. EARN combines the best parts of two worlds: the high yields of Liquidity Mining and the safety and low volatility of the traditional Lending product. Unlike our traditional Liquidity Mining, EARN only requires a single coin to be invested, and the rewards are then also paid out in the native coin that has been invested.
In practice, it’s similar to how Liquidity Mining works:
- The user allocates one type of crypto.
- The user’s crypto will be paired with another crypto (depending on the type and amount of crypto allocated) and then invested into a Liquidity Mining pool.
- Rewards will be paid out every 24 hours.
7. Are there any fees for using the EARN product?
Cake DeFi’s fees, as well as the amount for the volatility protection pool, are deducted from the rewards. Listed APYs are after all fees have been taken out.
8. Are the fees and volatility protection pool deductions already included in the APY?
Yes, the APY shown is after fees and volatility protection pool deductions. In other words, the APY you see is what you will receive in rewards.
9. Is there a minimum or maximum amount I can invest with EARN?
No, there is no minimum or maximum amount. You can enter with as little or as much as you like.
10. Can I allocate more assets to my existing EARN entries?
It is not possible to add more assets to an existing entry. You may, however, allocate and add as many entries as you like.
11. Where can I find my rewards?
Your EARN rewards are compounded into your initial entry to maximize your rewards and earn interest on your investment.
12. Is it possible to withdraw my funds from the EARN product at any time?
Yes, you may withdraw your funds from EARN at any time. However, your volatility protection ratio is determined by how much time you have invested in the product. Take this into consideration when exiting.
13. How do I start using EARN?
Getting started with EARN is easy. Just follow these simple steps:
- Click here to go to the EARN page.
- Allocate one of the displayed cryptos
- Benefit from the volatility protection coverage once allocation is complete
- Expect the rewards payout to come in every 24 hours