olding cryptocurrencies just in your wallet and waiting until they will go in value is old strategy among cryptocurrency investors. But what if you can put some of your holdings into savings account and get passive income despite in which direction price will go. Especially, if you put some of your crypto into high paying savings platform. This article explains how Pokket works and how can you earn money 24/7 while you sleep.
What is Pokket and how does it work?
Pokket is cryptocurrency savings account offering better rates in comparison to any other cryptocurrency savings product on different platforms. You can deposit variety of tokens from the list of 50+ and start to earn weekly interest. Rates fluctuate depending on volatility and can range from 9% to 0.05%. You can legitimately wander what is the product behind Pokket offering such a high yield? They use financial derivatives to create a product that earns high interest return for cryptocurrency holders.
Nest, of course, you will question if it is safe to use. I will say with crypto we are all in risky zone because of high volatility, market speculation and regulatory uncertainty but Pokket tries to achieve trust in their system by protecting their customer funds in offline (cold) wallet and using collateral of 110% just to be safe. They store 110% of customer funds in TrueUSD (Trust tokens) or Tether (USDT), so it’s safe from market fluctuations.
Now, how you should start and earn weekly interest with Pokket savings account? You have two different ways:
1. Deposit tokens from the list in savings product creating token structured savings.
2. Deposit USDT or TrueUSD and use them in pair with selected token according to your own needs and offered interest rates. This time you're creating stablecoin structured saving.
Let's dive into details to understand how this actually works. Let's say you chose stablecoin structured savings.
When creating a new Stablecoin Structured Saving, you first select the stablecoin (USDT or TUSD) and then choose the underlying token from one of the 50+ token selections.
After one-week, the Stablecoin Structured Savings have one of the 2 outcomes at the maturity date:
1. If the market price of the underlying token is within -9% (underlying token price at maturity > 91% underlying token price at start) after the one-week period, you get the saving amount + interest, in the stablecoin you saved with us.
2. If the market price of the token is below or equal to -9% (underlying token price at maturity <= 91% underlying token price at start) after the one-week period, you get underlying token equivalent of both the saving amount and interest, converted at strike price (91% of the value at start) to the underlying token. In other words, you have purchased your chosen token at a 9% discount, all while earning interest!
Now, let's say, you want to create a token structured saving and use Ethereum. I will show you my experience as I invested very small amount to try Pokket product. I started on August 11th and deposited 0.05085358 ETH. One week interest rate was 1.07% and annual 55.64%. Because I chose automatic rollover my new balance of 0.05140076 went to the new token structured contract with 0.16% weekly interest rate (8.32% annual). I left automatic rollover and repeated it for another 2 weeks. You can see screenshots of my activity. If price of Ethereum on maturity date of September 1st will not go above 436.46 USD I will get 0.05202733 ETH to my account. What happens if it goes above? I will get my original stake of ETH + 10 interest in USDT.
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