The cryptocurrency app that makes crypto asset management accessible to all says it offers the best of all worlds by gathering the benefits of centralized and decentralized financing in one place.
SwissBorg Smart Yield wallet allows investors to generate income from their digital assets, regardless of whether the currency will appreciate or not. The company’s systems examine a range of applications in the areas of DeFi and CeFi and rate them based on risk-reward ratios.
The automated and streamlined approach means that users can access the best software without having to spend many hours searching for them. The best breeding measures in the market are also evaluated on a daily basis, which reduces the possibility of losing profitable opportunities.
This is not at the expense of protection. Risk management is at the center of the Smart Yield offering, and a safety net has been created to protect against the risks of smart contracts when errors in the base code are used to steal or block funds. SwissBorg reports that 25% of all proceeds are invested in this program for added security.
According to SwissBorg, profitability increases daily to maximize profits, and lower barriers to entry mean everyone can operate multiple cranes. No minimum investment period ensures that crypto enthusiasts can transfer money to and from the Smart Yield account as they like, and deposits can start from € 10 ($ 12.15).
DeFi and CeFi: Advantages and Disadvantages
As savings accounts at older banks offer moderate interest rates, interest in profitability programs introduced in the crypto sector has grown in recent months.
This was all driven by DeFi industry growth in 2020, when the total value of these protocols increased from $ 671 million to $ 15.5 billion over the course of the year. That number has doubled since early 2021, at one point exceeding $ 40 billion. Central financial brands are now preoccupied with sharing.
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But according to SwissBorg, DeFi and CeFi have their own unique set of advantages and disadvantages.
Decentralized financing allows shareholders to earn profits by lending to other cryptocurrencies such as ETH, USDC and DAI. However, the level of interest can fluctuate greatly depending on supply and demand – SwissBorg claims that in extreme cases it can fluctuate between 0.01% and 50% over a few hours. Many DeFi protocols also rely on the Ethereum blockchain, as gas taxes rose too late. This means that even basic transactions can cost between $ 30 and $ 70 and consume profits.
On the face of it, these shortcomings could make central financial service providers more attractive. This may include loaning your assets to a company that invests on your behalf, for example by providing loans to borrowers. While this may eliminate transaction fees, there may be a risk of a CCP default – they don’t always provide transparency about the use of funds.
After launching Smart Yield in December 2020, SwissBorg has started publishing monthly reports outlining the performance of these portfolios.
Figures covering the second half of December and the whole of January show that an average annual return of 20.21% was achieved during this period.
Smart Yield wallets that support Bitcoin, Ether, Binance Coin and DAI are currently under development, and SwissBorg says: “Fairness and inclusion are at the core of the SwissBorg identity, so we decided to find a way to profit from cryptocurrency for everyone.”