How USDT Bonds strategy works
USDT Bonds strategy taps into the diverse opportunities offered by Decentralized Finance (DeFi) beyond traditional liquidity providing.
In this strategy, we harness a range of DeFi features to optimize returns and expand possibilities for our clients.
The DeFi features we use in this strategy include but are not limited to:
Supplying for loans: lending assets to decentralized lending protocols;
Staking in new projects: staking coins in emerging DeFi projects, gaining access to governance rights, securing networks, and potentially receiving airdrops of new tokens;
Looping: process of repeatedly supplying and borrowing the same assets and then repeatedly resupplying the borrowed assets;
Yield farming: staking lp tokens on DEX.
Risks and how we manage them
Stablecoin risk:
Stablecoins function on the trust of it being exchangeable for the underlying asset.
Smart contract failure:
Using DeFi features, a provider locks up their assets in a smart contract, which is always vulnerable to cyber attacks and fails if compromised.
Despite massive improvements in the last few years, smart contracts have yet to become secure cryptocurrency tools.
We use platforms that have passed security audits and are less susceptible to vulnerabilities.
Check out the detailed explainer video on the USDT Bonds strategy: