#What is the new stablecoin yield product from Figment and OpenTrade?
The innovative stablecoin yield product launched by Figment in collaboration with OpenTrade offers an impressive 15% annual percentage rate (APR) on stablecoins. This initiative serves as a solution for investors looking to earn substantial returns on their digital assets. The yield is achieved by stashing Solana (SOL) tokens, enhanced by the strategic use of perpetual SOL futures, resulting in returns that far exceed the standard staking yields typically associated with SOL.
This launch comes as Figment, a recognized leader in staking services, partners with OpenTrade, a reputable supply chain for lending and yield solutions, fortified by investments from a16z Crypto and Circle. Crypto.com stands as the custodian for the assets, establishing a secure environment for investors.
#How does the yield generation work?
The yield is generated through a sophisticated process that combines staking rewards obtained from holding Solana with hedged futures positions. This dual mechanism not only aims to maximize returns but also provides a layer of protection for the invested funds. The product promises features such as institutional custody, flexible deposits and withdrawals, and enhanced asset protection, ensuring that investor interests are prioritized.
The infrastructure behind the yield product relies on a specialized Figment validator in conjunction with OpenTrade’s high-caliber yield infrastructure, which caters to various institutional needs. The separation of assets into a dedicated account managed by Crypto.com ensures an additional layer of security, granting investors peace of mind.
#Why is this product significant for stablecoin holders?
The growing adoption of stablecoins alongside the increasing demand for yield-generating solutions in exchanges, digital wallets, and fintech services has prompted this collaboration. The yield product helps address the needs of traders by providing access to lucrative yield options that unite market-leading returns and robust protections. This blend of benefits is uncommon in both traditional real-world asset investments and decentralized finance (DeFi) strategies.
This initiative not only opens new horizons for existing users of stablecoins but also appeals to new investors looking to leverage their holdings in an efficient manner. The unique combination of yield generation strategies makes this product an attractive option for those navigating the evolving digital asset landscape.
#How can investors begin participating?
Investors can easily deposit their stablecoins through Figment's user-friendly application into the OpenTrade vault. Once deposited, earnings start accruing immediately, and withdrawals can be made at any time, adding to the product's appeal. With this offering, investors have the opportunity to enhance their returns in a secure and convenient manner, positioning themselves favorably within the ever-expanding crypto ecosystem.