Phuture, a DeFi protocol for earning passive income, has teamed up with Notional, a leading DeFi protocol for fixed-rate borrowing and lending. As a result of the collaboration, Phuture has launched its latest yield-farming product, USV (USDC Savings Vault), which promises premium returns. Users can store cryptocurrency in a vault and receive interest on their holdings.
Phuture’s USV and the relevance of Notional partnership
Investors can receive interest on their assets in USV, an ERC-compliant ERC-4626 vault that uses Circle’s USDC stablecoin as collateral. In order to earn passive profits, customers can put crypto assets into the Savings Vault. In DeFi, a vault stands in for an automated smart contract that produces returns. The smart contract automatically reallocates capital to the investments expected to produce the highest return, saving the investor the trouble of doing so.
Notional is an Ethereum-based platform that facilitates the lending and borrowing of cryptocurrency at predetermined interest rates. USV effectively holds a collection of Notional bonds with varying maturities and fixed interest rates. Investors can get their money out of it whenever they choose to after making an initial investment. Also, unlike the interest rates on lending methods, which can fluctuate over time, interest rates on loans and advances remain stable.
Users’ capital is not ‘locked up’ when they lend on Notional, but their rate is guaranteed till maturity. There are three different stablecoin terms available on the platform: three months, six months, and one year, and the terms roll over every three months.
Phuture (PHTR) is an automated, themed index fund platform built on Ethereum and Avalanche that streamlines the investment process. The Phuture app allows investors to convert their USDC to USV and earn vault shares in exchange. In the same way that users can access their assets whenever they choose, users can also withdraw their assets from any Phuture product that operates on the blockchain.