Maxim Galash
CEO of Coinchange
Vadim Filippov
Chief Science Officer at Coinchange
Learn about Decentralized Finance, or DeFi, and how yield farming cryptocurrency can lead to achieving higher yearly returns than the average ETF.
As of September 2021, there is over $115 billion USD worth of assets in the Decentralized Finance crypto market.
Decentralized Finance, or DeFi, provides an alternative to traditional banks. Instead of having a third party in a financial transaction—a role banks traditionally played— there is no intermediary. Instead, transactions are handled automatically through technology, executed using Smart Contracts.
“All financial transactions and records are immutable, un-editable, securely stored on the blockchain,” says Vadim Filippov, Chief Science Officer at Coinchange, a FinTech company that generates yield for customers through blockchain-based assets. “This allows trading, lending, borrowing, insurance and other financial transactions to be automated. And with that automation, the fees generated can go to users, instead of intermediaries.”
Our yield farming strategy is low-risk, market neutral and offers returns much higher than the average ETF or mutual fund.
Maxim Galash, CEO of Coinchange
Demystifying Crypto with Yield Farming
One of the biggest draws of DeFi is yield farming, which can bring higher rewards than traditional investments. Until recently, “investing” in cryptocurrency meant buying a token as a digital asset with the expectation that its value would continue to rise.
Yield farming is the practice of actively managing passive income with alternative asset classes. The primary mode of yield farming right now involves liquidity provisioning to DeFi apps. By providing liquidity to liquidity pools, users are entitled to the fees that are generated based on the activity in those pools. This provides returns that are not based on the market – something a stock portfolio can’t offer.
“Our yield farming strategy is low-risk, market neutral and offers returns much higher than the average ETF or mutual fund,” says Maxim Galash, CEO of Coinchange. “It is an absolute must for anyone already holding crypto as an investment, but it is also a winning investment strategy for newcomers to crypto looking to diversify with a high yield opportunity.”
Originally conceived in 2017 as a brokerage, Coinchange pivoted in late 2020 with the goal of making DeFi and crypto wealth management accessible, while providing high-yield passive income. Their DeFi yield farming strategies were designed with an easier barrier to entry than what was available on the market – featuring multiple ways to invest directly from USD.
How Coinchange can help
“There are risks related to bad actors in the DeFi space – such as poorly programmed Smart Contracts and liquidity pool draining — but we do detailed due diligence on any protocol we use, and commit to only using vetted smart contracts of the highest standard,” says Filippov.
With Coinchange, the risk of stablecoin yield farming strategies are “virtually nil,” according to Filippov. The value of stablecoins is pegged to the American dollar, so there isn’t the inherent market risk of using a token that fluctuates in value, protecting principal investments.
In addition, investing is easier with Coinchange — you can easily deposit, trade, manage, and withdraw at the click of a button. To get started, just create a Coinchange account, deposit USD, and select a High Yield Account to invest in.
“There is a misconception that crypto is for a certain type of person – a younger, internet-savvy person. You hear “crypto” and you might think of a coder, or a gamer, or something like that,” says Galash. “The fact is, though, that 63% of adults in the US have described themselves as “crypto-curious.” The market is growing, and it doesn’t have to have a high barrier of entry.”
