1. DeFi Strategies: 30% APY USDT Strategy Explained
DeFi Strategies: 30% APY USDT Strategy Explained
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In our latest discussion, we dive deep into the innovative USDT DeFi strategy, which boasts a notable 30% APY. This blog post serves as your guide through the intricate layers of this strategy, exploring the mechanisms of the Axie Infinity protocol and addressing the insightful questions raised by our community. Here, we clarify how the strategy functions, outline its risk management strategies and share a glimpse into our platform's forward-thinking updates.

The USDT DeFi strategy offers a remarkable 30% APY. We have many questions from users, so could you please tell us more about the strategy in detail?
It's great news for all our users. This strategy, with a medium risk level, offers daily payouts and anytime withdrawal terms for USDT. It is based on the Axie Infinity project. We stake its token, AXS, on the official web platform. To protect users from fluctuations in the AXS/USDT exchange rate, we hedge the risk on futures markets on centralized exchanges by opening a short position and earning extra funding fees when possible by market conditions. We have been testing this strategy for the last three months since January 2024, and we achieved around 30% APY on average.

Could you please explain more about the Axie Infinity protocol?
Axie Infinity is a blockchain-based trading and battling game that is partially owned and operated by its players. The Axie Infinity ecosystem also has its unique governance token, known as Axie Infinity Shards (AXS). These tokens are used to participate in key governance votes and will give holders a say in how funds in the Axie Community Treasury are spent.

Could you explain the risks of the strategy to us and how are users protected against them?
The strategy has a medium risk level. It performs well with a good level of automation and high liquidity for the token on big markets. There is the protocol risk, as we use the official platform of Axie Infinity and the strategy could be damaged if the staking mechanism faces problems. There's also the risk associated with Binance or other centralized exchanges where we hedge the strategy because the strategy is partially executed on these exchanges. We have risk management in place as the exchange contributes a portion of its monthly profits to a fund compensating for losses in case of an attack or other damages.

Is the 30% APY guaranteed, or do payouts fluctuate?
The 30% APY is guaranteed for the current month and could be reviewed in May. This applies to all our strategies with a fixed APY, where we review the strategy performance at the start of each month and decide whether to adjust the APY or maintain it for the next month.

Could you please tell us more about the Ethereum DeFi strategy? How does it work and what are the risks?
For Ethereum, we use a different approach. The strategy is based on the Pendle protocol, which is closer to options investments or even bonds from the traditional market. This strategy offers flexible APY and monthly withdrawals but still maintains a very high yield for Ethereum.

Could you break down where EarnPark is earning its fees from? For example, are you making 35% and distributing 30% back to investors?
We cannot say the exact amount of the fee we have on this strategy, but yes, we adopt the same approach. We earn an extra margin when the strategy is successful, and our earnings come from a share of the actual profits that the strategy generates. It's a win-win alignment with client success.

If EarnPark uses other DeFi platforms and they airdrop their tokens, which are worth some money, how are these tokens managed? Are these profits given back to investors or retained?
For now, we only received tokens from the Arbitrum airdrop last year because we used a lot of DeFi protocols on this network. We put these tokens into a DAO to be available for voting on project development. We're not sure which tokens we will get soon, but we will consider how to use them when it happens. Maybe we will share some of the tokens with our users, but we have yet to decide.

Could you share with us some updates that have been added recently that might have gone unnoticed by users?
We made a significant update to our main website, enhancing the main page and the "About Us" page based on client feedback. We also introduced a mini investment calculator for all types of strategies we offer, and we updated some information about our founders and our team. Additionally, we improved the function for quick search of coins we offer by groups like all coins, top coins, and others. We also added more details about our partners and their tweets about us.

What are some upcoming updates?
We are integrating a swap function with a decentralized exchange to provide swaps with the 1inch Protocol. We are also developing portfolio analysis tools that will allow users to track their investments more comprehensively. We're enhancing our referral program and planning to launch our token in the coming quarters.

Is the token coming, and if so, when is it coming?
The token is coming, but there is a huge amount of work to be done first. I think in the current quarter we will finalize the white paper and define the details of the tokenomics and utility. In the next quarter, we plan to launch the token with a token sale and airdrop.

Thank you for exploring the USDT DeFi with 30% APY strategy with EarnPark. We're excited to share not only the inner workings of our current strategies but also the innovative updates poised to enhance our platform. Your enthusiasm and inquiries help drive our progress, and we look forward to your continued engagement. Stay connected through our community channels and keep an eye on the EarnPark blog for the latest updates and breakthroughs in the ever-evolving DeFi landscape.