The world of crypto is complex for most users, and very few have the ability to optimize and make the best out of it. Over the course of the last four years, the Mudrex team has been working hard at simplifying crypto investing for everyone. Our flagship product, Coin Sets, makes it dead simple for you to invest in
About a year ago, we launched our DeFi product mesh.finance to help simplify the process of earning interest on your crypto. The goal was to protect capital and provide high returns. Over the course of a year, we created a global community of 3000+ crypto enthusiasts. With their help and collective learning, we built Vault. For more, read on!
How can you earn yields in Crypto?
Broadly, there are nine different ways to earn an interest in crypto while making sure that your capital is preserved.
Secure Lending/Borrowing protocols
Lend out on secure battle-tested DeFi protocols like AAVE, Compound, etc.
Returns 1-3% APY.
Risk: Smart contract risk
Provide liquidity on AMMs
Deposit in liquidity pools across different tokens on exchanges like Uniswap, Curve, DyDx, etc. You earn as trading fees get distributed.
Returns: 3-5% APY.
Risk: Impermanent Loss risk. When you withdraw, the prices might have moved such that your token value depreciated.
Yield Farming platforms
Lend out on Yearn, Harvest, etc. They automate protocol token yield investment and help you earn a little more on points 1 and 2.
Returns: 5%-7% APY.
Risk: 2x Smart contract risk of the Yield farming protocol and of the underlying lending/borrowing protocol.
Staking a token helps secure the blockchain, and in return, the chain offers rewards.
Risk: Staking usually happens with some counterparty, and hence there is typically a counterparty risk.
Unsecured CeFi lending
Lend out on BlockFi, Nexo, etc
Risk: These counterparties lend the amount out to other centralized entities. So there is a real counterparty risk here.
Unsecured DeFi Lending/Insurance Pools
Lend out on unsecured lending protocols like Goldfinch
Returns: 12-20% APY.
Risk: Since the lending here is unsecured, there is a real chance of the borrower defaulting. Having said that, you can get insurance against it.
Short term outlier protocols yields
Many new and upcoming projects offer insane yields to attract early participants into the protocol. The current crowd favorite here is Anchor, which is offering a crazy 19% yield.
Risk: As the protocols are new and relatively untested, there is a real chance of there being bugs in the smart contract.
Cross Exchange Arbitrage (CeFi and DeFi)
Tokens across different exchanges have different prices. Buy in one, sell in the other against some common reserve currency. Transfer the reserve currency and maintain a net pool
Returns: 18-36% APY
Risk: Execution risk. If you don’t close the position in time, you have a price risk.
Basis Arb (CeFi and DeFi)
Long Spot – Short Futures. Earn Funding fee.
Returns: 18-36% APY
Risk: Execution risk.
How is Mudrex able to provide 10% interest?
Mudrex uses the above nine different approaches to spread out the amount. We look out for short-term opportunities in riskier methods along with investing in the long-term, stable protocols.
In what currency is the interest credited?
The interest is credited in USDT.
Is my 10% Interest Guaranteed?
We are committed to keeping the returns stable and as high as possible. Having said that, it is likely that this will change in the future. In either case, we will inform you about the change, and you can withdraw at any time!
Are there any lock-ins?
Nope! You can withdraw at any time!
How frequently is the interest credited?
Every Day! You can literally see the number move on your app!
Is my money 100% secure?
As the saying goes, there are “no free lunches.” Risks are real. The only way to make consistent returns is to diversify across these different risk products and keep looking for more opportunities.
We have perfected this over the course of the last year and a half. We will:
- Diversify across multiple approaches
- Wherever possible, we will purchase insurance to reduce the risk using products like Fireblocks, Nexus Mutual, Unslashed, etc.
- Enforce strict transfer checks
As a result, nothing is 100% secure, but this is as good as it gets!