- Phuture, a DeFi protocol that makes passive income, has released a new yield-farming product called “USDC Savings Vault” (USV).
- USV uses Circle’s USDC stablecoin as its base collateral, so investors can earn interest on their holdings.
DeFi protocol that makes passive income, has released a new yield-farming product called “USDC Savings Vault” (USV) with “guaranteed” premium returns.
Phuture and Notional are bringing some green to the crypto markets, which have been red as blood.
USV is a vault that follows the ERC-4626 standard. It uses Circle’s USDC stablecoin as its base collateral, so investors can earn interest on their holdings.
In decentralised finance (DeFi), a vault is a smart contract that automatically makes money. Instead of moving money between projects by hand to find the one with the best return, the smart contract does the work for you.
Using the Phuture app, investors can convert their USDC to USV and receive vault shares as a representation of their investment. The value of the shares in the vault goes up over time based on the yield made by the vault.
Phuture has teamed up with Notional, a DeFi protocol for fixed-rate lending, to power its new vaults. As of this writing, Defi Llama data shows that Notional has a total value locked (TVL) of $86.5 million.
Investors’ USDC deposits are directly used to purchase Notional bonds with fixed-rate returns. The head of growth at Phuture, Charles Storry, told Decrypt, “We’ve teamed up with Notional to offer a stable long-term yield.” “USV holds a portfolio of fixed-rate Notional bonds with different maturities,”
Teddy Woodward, CEO and co-founder of Notional, told Decrypt, “When you lend on Notional, your capital isn’t “locked up,” but your rate is until the loan is paid off. Stablecoins have terms of 3, 6, and 12 months, and these terms roll over every three months.
When investors want their money back, they have to burn their vault shares. The investors then get their interest and the collateral they put up.
Investors in USV don’t have to wait to get their money back; they can do so whenever they want.