EARN is a safe & secure way to generate passive earnings on your existing crypto investments
Crypto assets have brought a new way of earning passively by HODL-ing long term while generating additional earnings. But even passive earnings have taken a hit during the crypto winter, as you must have recently come across about Celsius and Anchor Protocol.
With the ongoing market sentiments and recent events concerning crypto projects, choosing a reliable and secure platform is very essential.
At CoinDCX, keeping your funds secure is always our #1 priority. We launched EARN earlier this year with the goal to provide a simple way to build crypto wealth passively. When you put your crypto to Earn, they are deployed across Trusted Custodians and Income Generating avenues to generate fixed rewards with minimum risk.
We would like to expand on this a little more and go deeper into how your funds are completely safe as users of EARN.
Steps we take to keep your EARN funds secure:
- Capping of Crypto Inflows
What makes us different is the way we manage our funds for EARN. Unlike other market players, EARN has a maximum capping towards a particular token inflow when there is a perceived dearth of deployment opportunities. These tokens have a “FULLY SUBSCRIBED” tag next to them.
Following this risk management strategy helps us handle funds better and maintain a balance between safe investment opportunities and passive earning rates.
For example, if the threshold for Bitcoin under EARN is 10,000 BTC, we will NOT accept any more EARN requests beyond this threshold. So ensure you put your cryptos in EARN before they are fully subscribed!
- Regular Interest Rate Audits
We frequently refresh our EARN crypto rates with a priority on safety over returns. Such rate change is decided based on safe and reliable deployment avenues available in the market for any crypto at that given point of time.
For example, the EARN crypto deposit rate on Bitcoin can be 2.50% on one day and be changed to 2% subsequently based on the prevailing market scenario.
- Deployment of Assets Only Across Trusted Avenues
One of the primary avenues for deployment of crypto assets under EARN is CoinDCX’s own margin product on its exchange platform with trading as the underlying & algorithm-based liquidations to protect the funds. Other avenues include algorithmically controlled margin funding on decentralised exchanges (DEXs), cold staking where funds do not leave our custody environment, with visibility on custody and real time monitoring
To say in simple words, the key avenues in which your deposits are deployed is to help provide liquidity for trades on our own trading platform to provide liquidity for traders. Several risk management mechanisms have been in place to ensure safety of funds deployed on our margin product, one of them is Forced Liquidation where selling happens automatically, when certain conditions are met by the trader.
- Other Asset Deployment Avenues
For other sources of deployment of the cryptos deposited under EARN, we have a robust risk management process coupled with a strong monitoring framework, again to ensure your funds stay protected.
We do not have exposure to any stressed institutions like 3AC, Babel, Celsius, etc. While you might have been hearing about certain institutions facing issues due to deploying crypto assets in risky practices, our awesome risk assessment, driven by its high standards of ethical investing, has the foresight to identify such concerns and keep your funds safe.
So stress not!
As we always state, our No.1 priority is to maintain your trust in us and any step we take is thought through to ensure your funds stay protected.
So go ahead, check out EARN on CoinDCX and make your cryptos work for you without any worry.