The rapid growth of DeFi opens up new investment opportunities, but complex processes do not allow them to be used for retail users. Automated trading infrastructure can eliminate this gap.
Decentralized finance (DeFi) is one of the most important options for using blockchain technology.
Despite the sharp decline, as a result of which the total blocked value (TVL) of DeFi amounted to about 20% of the peak value ($248.8 billion in November 2021 compared to $48.6 billion in April 2023), this trend continues and has the potential to recover in the coming years.
The main argument in favor of further growth of DeFi is the unsurpassed advantages of financial services built on decentralized infrastructures.
As DeFi develops, cryptocurrency holders gain access to a variety of opportunities to increase profitability.
For example, decentralized exchanges (DEX) reward liquidity providers (LP) with the commission received on their platforms. There are other investment options, such as lending, staking or profitable farming.
However, it is more difficult for retail investors to explore all these opportunities. To begin with, investing in digital assets is a risky undertaking due to their high volatility.
In addition, providing liquidity on most large DEX involves additional risks, such as non-permanent losses.
Non-permanent losses are a situation in which the value of tokens placed in liquidity pools turns out to be lower than if the tokens were simply stored.
This risk is inherent in most DEX using the Automatic Market Maker (AMM) model.
Thus, the conducted research showed that about half of the liquidity providers on Uniswap, the largest DEX trading volume, may eventually lose money due to non-permanent losses.
Access to systematic strategies levels the playing field
To get the most out of DeFi, cryptocurrency users need to apply sophisticated strategies and treat profitability as a professional asset management business, and not as a “get rich” scheme.
Professional fund managers have the best chance of winning DeFi, as they implement complex strategies using advanced financial engineering and quantitative models.
However, even such professionals may face difficulties, as DeFi asset management requires additional experience in chain logistics.
Without the help of blockchain developers, who will be able to individually connect each protocol on different chains, it will be difficult for quantum traders to scale their strategies and get potential profits.
Currently, there are not enough specialized platforms that provide such a trading infrastructure that promotes closer interaction between retail users of cryptocurrencies and professional digital asset managers.
As a result, users and investors often navigate the complex world of DeFi on their own, manually participating in profit-making schemes without the support of systematic strategies.
Due to the lack of a systematic approach, such a manual process can lead not to profit, but to losses.
This DeFi platform offers automated asset management
Range Protocol is a universal platform and ecosystem for managing assets on the chain.
It connects DeFi users with qualified storage managers who, using advanced quantitative strategies, make adjustments almost instantly depending on changing market conditions.
These managers create non-custodial portfolios adapted to various asset management strategies and the acceptable level of risk. This approach ensures the availability of system trading strategies while maintaining full user control over their funds.
In addition, professional fund managers who decide to use Range will receive benefits such as expanding the scope of activity, reducing costs and increasing profitability due to strategic leverage and interchangeable tokens of liquidity providers (LP) with higher utility.
Professionally managed vaults
Range’s first product is Concentrated Liquidity AMM Vaults, which are automated vaults that allow users to systematically place liquidity on DEX with concentrated liquidity, such as Uniswap V3, PancakeSwap V3 and QuickSwap V3.
These repositories increase LP profitability by optimizing liquidity ranges, quickly adapting to changing market conditions and timely rebalancing of liquidity (JIT).
Storage managers conduct back testing to determine favorable price ranges in which liquidity should be provided, which makes it possible to effectively use capital to provide liquidity and increase profitability.
Their quantitative models quickly adapt to volatile or trending markets, and the JIT liquidity rebalancing system allows you to adjust price ranges in real time, thereby maximizing profitability and minimizing rebalancing fees.
Vaults allow users to place their assets into individual strategies that match their risk preferences, while avoiding custodial risks.
Storage strategies are managed off-chain, which allows you to use extensive data for financial and engineering modeling.
Although calculations are performed off-chain, they are performed on-chain in real time, which allows you to quickly make adjustments in response to market changes.
Range Protocol plans to specifically build storage facilities for various segments of DeFi, including providing liquidity in concentrated liquid OMS, NFT Finance, liquid stacking and derivatives markets such as options and perpetual swaps.
Within each category, specific strategies are applied based on the liquidity of assets and the acceptable level of risk of the user.
The team behind Range Protocol has extensive market-making experience in more than 200 projects and over-the-counter trading operations. Quantitative research is one of the main elements of the platform’s functions, and the team plans to use its own research in Range Protocol strategies.
Range plans to further expand and integrate other DeFi segments. DEX liquidity management repositories are starting a broader ecosystem that includes non-functioning tokens (NFT), liquid stab tokens and derivatives.
Thanks to Range, the DeFi market now has a chain-based, non-custodial quantum trading infrastructure that offers active asset management and meets the expectations of both retail cryptocurrency users and specialized asset managers.
What is CredEarn platform
CredEarn is a decentralized finance (DeFi) platform that allows users to earn interest on their cryptocurrency holdings. It is designed to provide users with an opportunity to earn passive income by lending their digital assets to borrowers in exchange for interest payments.
CredEarn operates on the blockchain and leverages smart contracts to facilitate lending and borrowing activities in a transparent and decentralized manner.
CredEarn allows users to deposit a variety of cryptocurrencies, including but not limited to Bitcoin (BTC), Ethereum (ETH), and stablecoins such as USD Coin (USDC) and Tether (USDT), into the platform.
These deposited cryptocurrencies are then lent out to borrowers who are willing to pay interest on the loans they receive. The interest rates on CredEarn are determined by market demand and supply dynamics, and users can earn interest on a daily, weekly, or monthly basis depending on the terms of their deposits.
One of the notable features of CredEarn is that it provides flexible terms for users, allowing them to withdraw their deposited assets at any time without any lock-up period or penalties. This provides users with liquidity and flexibility to manage their funds according to their needs.
CredEarn also incorporates a tiered membership system that offers additional benefits to users who hold and stake the platform’s native token, known as “LBA” (short for Cred LBA). These benefits may include higher interest rates, priority customer support, and access to exclusive features and promotions.
It’s important to note that, as with any investment or financial activity, there are risks associated with using CredEarn or any other DeFi platform. Users should carefully consider the risks, terms, and conditions associated with lending and borrowing cryptocurrencies, and conduct their own research before participating in such activities.
The history of CredEarn platform
CredEarn was founded in 2018 by Dan Schatt and Lu Hua as a part of Cred LLC, a California-based company that focuses on providing lending and borrowing solutions for digital assets. The company’s mission is to democratize financial services and make them accessible to a wider range of people through blockchain technology.
CredEarn launched its platform in October 2018, initially offering users the ability to earn interest on their cryptocurrency holdings by depositing Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) into the platform.
Over time, the platform expanded its offerings to support a variety of other cryptocurrencies, including stablecoins like USD Coin (USDC), Tether (USDT), and others.
In 2019, Cred partnered with Uphold, a cryptocurrency exchange and wallet provider, to enable Uphold users to earn interest on their cryptocurrency holdings through the CredEarn platform. This partnership allowed CredEarn to reach a broader user base and provided Uphold users with an additional way to earn passive income from their digital assets.
In 2020, Cred introduced its native token, LBA (Cred LBA), which is used to provide additional benefits to platform users, such as higher interest rates, priority customer support, and other perks. LBA can be earned by depositing and staking CredEarn-supported assets on the platform, and it can also be used as collateral for borrowing on the platform.
CredEarn has continued to evolve and expand its offerings since its inception, introducing new features, partnerships, and supported cryptocurrencies to provide users with more opportunities to earn interest on their digital assets. The platform has gained traction among crypto investors and has established itself as one of the prominent DeFi lending platforms in the cryptocurrency ecosystem.
However, as with any financial service, it’s important for users to carefully evaluate the risks and terms associated with CredEarn or any other DeFi platform before participating.
How CredEarn platform works
CredEarn is a decentralized finance (DeFi) platform that allows users to earn interest on their cryptocurrency holdings. Here’s an overview of how the CredEarn platform typically works:
- Deposit Cryptocurrencies: Users can deposit supported cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), and stablecoins like USD Coin (USDC), into their CredEarn account. These deposited cryptocurrencies are used to fund loans to borrowers.
- Lending to Borrowers: Once the cryptocurrencies are deposited, CredEarn lends them to borrowers who are willing to pay interest on the loans they receive. The borrowers may use the borrowed funds for various purposes, such as trading, investing, or other activities.
- Earn Interest: As a lender, users earn interest on the cryptocurrency deposits they have made into CredEarn. The interest rates are determined by market demand and supply dynamics and may vary over time. Interest is typically calculated on a daily, weekly, or monthly basis, depending on the terms of the deposit.
- Flexible Terms: CredEarn provides users with flexibility in managing their funds. Users can typically withdraw their deposited assets at any time without any lock-up period or penalties, providing liquidity and flexibility for managing their holdings.
- Native Token (LBA): CredEarn has a native token called LBA (Cred LBA) that users can earn and use within the platform. LBA can be earned by depositing and staking supported assets on the platform, and it can be used to access additional benefits such as higher interest rates and priority customer support.
- Risk Management: CredEarn manages risk through various means, such as collateral requirements, borrower creditworthiness assessments, and risk monitoring. However, it’s important to note that lending and borrowing activities, including those on CredEarn, carry inherent risks, such as default risk, market volatility risk, and platform risk. Users should carefully evaluate the risks and terms associated with using CredEarn or any other DeFi platform and make informed decisions.
- Tiered Membership: CredEarn offers a tiered membership system that provides additional benefits to users who hold and stake LBA, such as higher interest rates and other perks. Users can choose to participate in the membership program based on their preferences and needs.
It’s essential to understand that the specific mechanics and features of CredEarn may be subject to change, and users should review the platform’s terms and conditions for the most up-to-date information.
It’s also important to conduct thorough research, assess risks, and consider personal financial circumstances before participating in any lending or borrowing activities on CredEarn or any other DeFi platform.
Can CredEarn platform be trusted
As with any financial platform, whether CredEarn can be trusted depends on various factors, including its track record, security measures, and regulatory compliance. Here are some points to consider:
- Established Company: Cred LLC, the company behind CredEarn, was founded in 2018 and has been operating in the cryptocurrency lending and borrowing space for several years. The company has partnerships with established entities such as Uphold, and its founders have experience in the financial industry.
- Security Measures: CredEarn implements security measures to protect users’ funds and information, such as multi-factor authentication (MFA), encryption, and other standard security practices. However, like any online platform, there is always a risk of cyber attacks or other security breaches, and users should take necessary precautions, such as using strong passwords and enabling additional security features.
- Regulatory Compliance: CredEarn operates in a rapidly evolving regulatory landscape, and it’s important to review its compliance with relevant laws and regulations. CredEarn has obtained various licenses and compliances, such as Money Transmitter Licenses in the United States, and has taken steps to comply with anti-money laundering (AML) and know-your-customer (KYC) regulations in the jurisdictions it operates. However, regulations and compliance requirements can change, and users should stay updated on the platform’s compliance status.
- Risk Management: CredEarn manages risks through collateral requirements, borrower creditworthiness assessments, and risk monitoring. However, lending and borrowing activities inherently carry risks, such as default risk, market volatility risk, and platform risk. Users should carefully evaluate and understand the risks associated with using CredEarn or any other DeFi platform and make informed decisions.
- Native Token (LBA): CredEarn has a native token, LBA, which can be used to access additional benefits within the platform. However, users should be aware of the risks associated with holding and staking LBA, such as market volatility and token-specific risks.
- User Reviews and Feedback: Checking user reviews and feedback from reputable sources can provide insights into the experiences of other users with CredEarn. This can help users assess the platform’s trustworthiness and reliability.
It’s important to conduct thorough research, assess risks, and consider personal financial circumstances before using CredEarn or any other DeFi platform. It’s also recommended to seek professional financial advice if needed.
Cryptocurrency investments and DeFi activities are inherently speculative and can involve significant risks, and users should carefully consider their risk tolerance and financial situation before participating in such activities.
Does CredEarn platform charge a fee
Yes, CredEarn typically charges fees for the services it provides. Here are some common fees associated with the CredEarn platform:
- Interest Rate Spread: CredEarn may earn a spread on the interest rates charged to borrowers and the interest rates paid to lenders. This spread represents the difference between the interest rate paid by borrowers and the interest rate earned by lenders, and it is one way that CredEarn generates revenue to sustain its operations.
- Withdrawal Fees: CredEarn may charge withdrawal fees when users withdraw their deposited assets from the platform. The withdrawal fees vary depending on the specific cryptocurrency and withdrawal method chosen by the user.
- Network Fees: CredEarn may also pass on network fees associated with blockchain transactions, such as gas fees for Ethereum transactions or transaction fees for Bitcoin transactions. These fees are determined by the respective blockchains and are required for processing transactions on the blockchain.
- Membership Fees: CredEarn offers a tiered membership system with different levels of benefits, and some of the membership levels may require payment of a membership fee to access those benefits.
It’s important to review the CredEarn platform’s terms and conditions for the most up-to-date and comprehensive information on fees. Users should be aware of the fees associated with using CredEarn or any other DeFi platform and consider them in their overall assessment of the platform’s value proposition and potential returns.