DeFi is the lending of crypto, usually in the form of a stablecoin like USD Coin, to others in peer-to-peer networks. The rules are set out in smart contracts embedded in the Ethereum blockchain. By lending crypto, DeFi (decentralized finance) investors can make money. This “interest” received is called yield farming.
Rather than just own a stablecoin, investors can make that investment work for them to generate yield. Investors can deposit their investment into a DeFi platform like Coinchange, making it available for somebody else to borrow for a set time. In return, a yield is generated. In some cases 30% annually.
Coinchange is one of the most sophisticated DeFi yield aggregation platforms on the market. The platform is trying to bring Wall Street to the Mainstreet – trying to get the little guy to earn some extra dollars on their hard-earned cash.
“The secret sauce behind the application is the yield account. Yield is better than interest. We generate variable yield, day-per-day. We aggregate liquidity from little guys from retail people, we feed ah liquidity through DeFi markets to different from pools providing liquidity and we get paid by that based on the activity that happens to those pools. In layman terms, you can deposit your crypto, can deposit your fiat. Right now USD and can start earning on that. Daily interest compounding, no limits, no minimums, no holdbacks, no obligations.” – Coinchange Financial CEO Maxim Galash
No investment comes without risk and yield is no different. However, Coinchange’s yield is risk-adjusted. The platform curates earning opportunities on DeFi – meaning the platform analyzes the best pools to participate in to generate the most yield for the smallest risk.
“Pretty much a professional money manager in DeFi” – Coinchange Financial CEO Maxim Galash
Watch the full interview to learn about DeFi, how yields are generated, the risks behind DeFi investments, and why Coinchange can provide the highest yields.
00:00 – Coinchange Financial CEO Maxim Galash
00:49 – Business overview & investment opportunity
02:37 – How yield is generated?
03:46 – What is DeFi?
05:54 – Risks & platform analytics
11:54 – Liquidity rebalancing/provisioning
13:18 – Why Coinchange yield is higher?
15:00 – Financing round