BiFinance opens USDT regular financial management, providing users with more stable encrypted income products
Quoted from TechFlow Interpretation:
Over the past few months, the cumulative TVL of the top LSDfi protocols has topped $400 million, more than doubling since a month ago.
Although the TVL of the LSDfi protocol is growing rapidly, the TVL of the LSDfi protocol still accounts for less than 3% of the total addressable market. Although LSDfi provides attractive opportunities for LSD holders, users cannot ignore the associated risks, including but not limited to penalty risks, LSD price risks, smart contract risks, and third-party risks.
Cryptocurrencies increase market liquidity
Fiat currency is generally considered the most liquid asset because it can be converted into other assets most quickly and easily. The difference in liquidity of many fiat currencies in the global trade market also often represents the status of the sovereign government that endorses it in international trade.
Cryptocurrencies and fiat currencies have certain commonalities. The same reason as sovereign government endorsement is that the circulation of currencies in the crypto market is affected by consensus and crypto market share. Unlike legal currency, which is restricted by region and business processing time, cryptocurrency has a higher degree of freedom of circulation, and it is not restricted by region or time.
In the current encryption market, the way to increase liquidity usually relies on various DeFi protocols or various wealth management products launched by CEX. Whether it is DeFi lending, Dex liquidity pool, LSDFi, or the wealth management products launched by CEX, the essence is to improve market liquidity and asset utilization.
Asset utilization and risk coexist
In the DeFi protocol or Dex’s AMM automatic market maker mechanism, to provide users with liquidity staking services, users can obtain certain returns. However, for new web3 users, complex DeFi or Dex interactions are not friendly. Users need to link into the Dapp in the wallet first, and there may be potential risk points such as asset loss and increased phishing attacks in multiple processes such as gas payment, slippage setting, and pledge.
In addition to the possible risk points of the above interactions and smart contracts, agreements with high asset utilization and high APY income often use the funds in the user’s TVL pool to do high-frequency transactions, multiple pledges to increase leverage, etc. High returns are accompanied by high risk.
BiFinance launches stable USDT wealth management products
Institutional digital asset trading platform BiFinance has launched a USDT wealth management product with a fixed annualized rate of return, with an annualized rate of return of up to 4%. USDT is the stablecoin with the highest market share, and the main reason for launching new regular products based on it is to reduce the risk of currency price fluctuations in the encryption market for new web3 users; in addition, it is still in the downward cycle of the encryption market, and investors prefer low risky product. Compared with various DeFi agreements, BiFinance’s USDT fixed-term wealth management products have more robust advantages.
The current fixed wealth management products launched by BiFinance include two cycles of 30 days and 90 days, investors can plan and manage their own funds more flexibly. For new investors, you only need to register an account, recharge USDT to your account, and choose suitable financial products for investment. The operation process is simple and fast, avoiding the cumbersome interaction process of decentralized protocols and applications and greatly reducing the potential risk of smart contracts.
BiFinance has always been committed to providing diversified encrypted asset trading services for global encrypted asset investors and new users. Taking compliance operation as the starting point, the automatic warning reminder and protection mechanism of the security risk control system independently developed by the platform can guarantee the asset safety of all investors to the greatest extent! In the future, BiFinance will continue to deepen product research and development, and launch more diversified encrypted trading functions, so stay tuned.
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