How Kaizen.Finance & Wasabi.Money Can Promise You 20% APR

Dear Kaizen Community!

Recent DeFi problems and general market volatility has had a certain effect on the members of our community. Cautious investors want to know how Wasabi.Money can grant 20% APR without compromising user assets and company capital.

This is a viable concern given the recent Celsius problems. We want to address some of your worries about the provided yield farming opportunities and talk about the possible risks, as we strive to be as transparent as one can be.

To do that in an efficient manner, we will describe how different our approach to the matters of liquidity are compared to other DeFi entities.

Celsius Situation and What To Make of It

Celsius is one of the largest crypto-lending firms in the world that offers interest on deposited BTC, ETH and stablecoins, while allowing users to take out crypto-collateralized loans.

Celsius takes cryptocurrency deposits and pays investors extremely high yields. Investors can earn yields of as much as 15–20%, depending on the token, and get substantial returns on deposits of Bitcoin and several stablecoins. Celsius is able to pay so much by lending out customers’ tokens to other investors and DeFi protocols at even higher rates. During normal times this is fairly normal, but recently, things went south real fast.

Enter UST, a stablecoin on the Terra blockchain, and Terra’s main token — LUNA. After a mass sell off by large investors, these assets stopped working as intended and experienced a so-called “death spiral” which wiped out more than $40 billion in combined market value.

Combined with the crash of Bitcoin and Ethereum, Celisus opted to pause withdrawals, swaps, and transfers between accounts to stabilize their liquidity and operations.

Without the protection of deposit insurance, and without the option of getting liquidity from a central bank, investors of Celsius can’t be 100% sure that they’ll get their money back. As they say, high rewards are rarely possible without the corresponding risk.

Let’s leave Celsius alone, agreeing that their strategy of lending is a risky one in the event of severe market fluctuations.

Are There Any Risk-Free Yield Farming Opportunities?

Any investment venture has certain risks, and the job of all investors is not to eliminate all risks but to manage and minimize them.

All collateralization-backed mechanisms like lending or borrowing bring in risks related to collateral asset volatility. That’s why Wasabi does not use lending and borrowing, leveraging the opportunities provided by liquidity pools management on popular DEX platforms.

Uniswap is the most popular Ethereum-based DEX that uses an AMM model. It employs liquidity pools instead of order books and has LP tokens for liquidity providers. Currently there are UNI-V2 and UNI-V3 pools that are different in the liquidity management approach. PancakeSwap is a Uniswap fork for BSC network, utilizing only the UNI-V2 model for now.

Every trade on these platforms incurs a trading fee split by all liquidity providers on the given market pair. Wasabi.Money utilizes their own liquidity management mechanisms to get a part of these fees and generate the profit for its investors.

Based on that, Kaizen and Wasabi have created a unique opportunity for the Kaizen Community, allowing you to get monthly rewards in both KZEN and USDT and keeping your portfolio ready for all market moves with guaranteed 20% APR for each token! Wasabi.Money will additionally send you 0.7% APR in its internal iWBM token on the total value of funds staked.

All Kaizen tokens staked will count in your Kaizen Pass level calculation allowing you to get higher allocation and get access to best deals on Kaizen.Finance!

Living Up To ‘Continuous Improvement’ Moniker

To recap, our yield farming opportunity sees you staking your stablecoin + KZEN (in equal portions) to receive 20%+ APR.

The yield remains high at 20% APR with monthly interest payouts, and you can withdraw earnings or put them back into staking. This rate is based on the average return on capital investment for our operations.

Our model is more sensible, given that we build our pools on stablecoins such as USDT, USDC, and BUSD and pay rewards in USDT. Overall, the principle of deposit is unaffected, and all strategies used are market-neutral and depend only on general trading activity.

We believe that this approach makes the most sense for every side involved and guarantees the funds safety and growth. You can visit the Kaizen&Wasabi yield farming page now. Also be sure to follow us on social media to find out more about the imminent launch of the service.

Links

Yield Farming Page: https://token.kaizen.finance/kaizen-wasabi-yield-farming

Kaizen.Finance Twitter: https://twitter.com/kaizen_finance

Kaizen.Finance Telegram: https://t.me/KaizenFinanceOfficial