Coinchange earns yield by deploying assets into a portfolio of DeFi (Decentralized Finance) strategies. Our portfolio is balanced to ensure that our approach is hedged and market-neutral while generating healthy returns.
In traditional finance, liquidity is provided by centralized institutions, such as banks and credit unions, to match buyers and sellers at scale. In the world of crypto, you are able to trade cryptocurrency through the use of automated market makers, rather than banks and credit unions, to utilize instant exchanges and lower fees. Coinchange acts as a liquidity provider by rewarding our investors with LP tokens in exchange for their investments. The amount of the reward depends on the percentage of the liquidity provided. Coinchange earns these LP tokens, converts them to cryptocurrency, and pays its users yield.