After a period of rising prices in the crypto market, many investors are looking for ways to take advantage of this growth without the extreme fluctuations often associated with cryptocurrencies such as Bitcoin and Ethereum. Poolder’s Stablecoin Poolfolio offers a solution for investors who want to participate in the crypto market but seek stability and predictability in their investments.
What are Stablecoins?
Stablecoins are digital coins that represent a stable value. Unlike other cryptocurrencies, which often fluctuate greatly in value, stablecoins maintain their value because each coin issued is backed by a reserve, such as euros, dollars or commodities like gold. This means that for every stablecoin there is an equivalent amount of value held in reserve. In our poolfolio, we use large, reliable stablecoins that we monitor carefully.
How does our Stablecoin Poolfolio work?
Our poolfolio places stablecoins in so-called liquidity pools. These are digital “reservoirs” on the blockchain where coins are stored to serve as trading liquidity. Traders can use these coins to trade and pay a fee to do so. We, as providers of this liquidity, earn from these fees. The liquidity can be used for simple currency exchanges, such as euros against dollars, or for more complex strategies such as yield farming, where extra rewards are earned. Yield farming is a way to generate extra returns by temporarily depositing your coins on a platform that needs them for certain financial activities.
The biggest advantage for investors is that our poolfolio allows them to profit from the crypto market without the high risks and fluctuations associated with direct investments in cryptocurrencies such as Bitcoin or Ethereum. Investors can therefore reap returns from the growth of the crypto market while keeping their investment stable.
Returns and Expectations
In the first half of 2024, our Stablecoin Poolfolio achieved a return of around 12%. If market conditions remain stable, we expect a total return of between 15% and 20% this year. However, it is important to realise that past performance is no guarantee for the future. Short-term fluctuations in the currency market may affect our returns, as we work with both euro and dollar stablecoins. Moreover, increased trading volumes in the crypto market can positively affect our returns.
In addition to these factors, we also take broader economic trends into account. For instance, changes in regulations or innovations in stablecoin technology may affect the performance of our pool portfolio. We continuously monitor the market in order to respond quickly to changes and make the most of opportunities.
For which type of investor?
Our Stablecoin Poolfolio is ideal for investors who want to participate in the crypto market but are looking for a stable and predictable source of returns. This product is particularly suitable for investors currently investing in real estate and looking for alternatives with similar risks, but with potentially higher returns. It also offers more flexibility, as investors can move their capital faster than in real estate.
Investors looking for a safe haven within the crypto market, without the worries of large fluctuations in value, will greatly benefit from our pool portfolio. It is also a good choice for those looking to diversify their investment portfolio by investing in digital assets with stable value.
Risks and Management
Although our Stablecoin Poolfolio is more stable than other crypto investments, there are still risks involved. The main risks are currency risk, technical issues and the risk that the stablecoin issuer cannot meet its obligations. New methods of keeping stablecoins stable also carry risks.
To protect our investors, we monitor the reserves covering stablecoins and the systems that keep their value stable. We thoroughly research the platforms and issuers of stablecoins to minimise technical risks. We also apply risk limits, such as a maximum deviation from the stable value of a stablecoin.
Unique Selling Points
What makes our Stablecoin Poolfolio unique is that it allows investors to participate in the crypto market without worrying about extreme fluctuations in value. This offers attractive returns with significantly less risk. Moreover, we offer full transparency on the underlying assets and returns, so investors always have insight into their investments.
Our team has extensive knowledge of the crypto market and DeFi platforms, allowing us to identify opportunities and manage risks effectively. This makes our Poolfolio an attractive option for investors looking to benefit from the growing crypto market without the associated volatility.
Our Poolfolio thus offers the perfect balance between stability and return. It is an excellent choice for investors looking to reap the benefits of the crypto market without the risks typically associated with cryptocurrencies.
Would you like to benefit from investing in digital currencies, with low volatility and high returns? Get in touch!
Attention! This investment falls outside AFM supervision. No license required for this activity.
