An investment strategy with balanced risk
Balance
The strategy involves lending USDC, a stablecoin pegged to the US dollar, on Aave. Aave is a well-known decentralised lending platform where investors can desposit theier USDC to earn interest while other users lend them out. Interest rates are dynamically adjusted to market demand.
Benefits
Steady income: Earn regular interest payments that can provide a stable, predictable income stream.
Passive investment: Lending on Aave requires minimal active management, making it an attractive option for passive investors.
Lower risk: Compared to more aggressive strategies, lending generally offers lower risk, especially with an established provider like Aave.
POOL INFORMATIONEN
Current annual yield
3 - 24%
Provider
Aave
TVL
bis 320M
Volumen (24h)
mult. M
Transaction fee
0.99%
Yearly fee
0.49%
Risks
Counterparty risk: Although Aave reduces the risks by over-hedging, there is still a risk that the default of the counterparty will affect the return.
Liquidity risks: High demand for withdrawals during market downturns could affect liquidity and potentially delay access to funds.
Currency risk: The investment is linked to the USD and is therefore exposed to certain exchange rate risks, which may have a positive or negative impact on the return on the investment.