Achieving an appealing annual return on a cryptocurrency investment isn't easy, but not impossible either. Traders can explore many methods to achieve this illustrious goal. Flint, a passive crypt investment gateway, throws its hat into the ring by focusing on stablecoins providing up to 13% returns per annum.
Passive Annual Returns On Stablecoins
The main draw of cryptocurrencies is how they fluctuate in value rather wildly. That volatility can be beneficial in a bull market and pose issues during bearish spells, like the first few weeks of 2022. As investors remain wary of these price swings, they explore alternative options in the cryptocurrency space to earn a passive return. Rather than volatile assets like Bitcoin or Ethereum, they show an increasing appetite for stablecoins.
Unlike a volatile asset like Bitcoin, a stablecoin has a stable value of $1. One would think such a currency cannot offer much passive return potential, but that isn't necessarily true. Stablecoins present a significant share of market liquidity, and demand remains high. That demand creates opportunities for passive investment gateways like Flint to help users achieve a higher passive return.
Through Flint, investors can use fiat currency - Indian rupees, for now, more currencies to be supported later - to gain access to decentralized finance (DeFi) yields. All Indian rupee deposits are converted to stablecoins - UST and USD Coin - and put into yield farming to provide investors with a passive return. Stablecoins reduce the price volatility and provide a low-risk investment solution that can still yield up to 13% passive revenue per annum.
Contrary to traditional investment solutions, Flint does not force users to contribute funds for a specific period. Instead, they can withdraw funds at any time without worrying about paying any fees or penalty charges. That approach makes venturing into low-risk DeFi passive revenue exploration seamless for users and exposes more people to decentralized finance protocols.
A Strong Focus On Solana
The approach by Flint creates new opportunities for decentralized finance protocols aiming to make a mainstream impact. The company has high hopes for the Solana network due to higher throughput and lower transaction fees. Bringing more currencies to Solana, including one or more stablecoins, can further enhance the passive return potential for users.
Moreover, Flint's mission to inject up to $500 million in capital across DeFi protocols on Solana over the next three years is remarkable. A strong focus is put on remittance solutions and the native Flint Pay service, which enables P2P and P2M crypto payments.
DeFi on Solana - Source: DeFiLlama
Solana Foundation Advisor Askhay BD adds:
“We’re incredibly excited about startups like Flint leveraging the Solana network to offer valuable consumer products in the mobile-first experience users are used to. Crypto is increasingly finding a place in every investor’s portfolio, and stablecoin yield may offer a great starting point for most investors entering the space.”
As Flint now enters the public beta phase - supporting up to 100,000 users - the team's vision and technology will be put to the test. One benefit of tapping Solana is how the team can introduce a referral program to bring additional returns on deposits to users. That referral program will also stress test the capacity of Flint's ecosystem and help the team gather more feedback on how to fine-tune their solution further.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.