In this article you will find:
a summary of the concepts of Yield and APY
an explanation of the lending and staking systems
how to lend/stake your cryptos held on Finary
additional information on eligible cryptos and fees
What is Yield and APY?
The term Yield describes the interests you can earn with your crypto. The yearly percentage of these earnings is usually expressed in APY (annual percentage yield). An APY of 2% means, that you will earn 2% interests on the amount you e.g. lend or stake.
What is lending?
As a lender you are lending your crypto assets to a so called borrower. As a reward for the risk you take, you are getting rewards in the crypto you are lending. Similar to lending euro at a bank, where you get your interests in euro.
Who are the borrowers and what are the risks?
Our lending partner only lends to reputable institutions and only after they have undertaken a rigorous risk assessment and credit evaluation.
Borrowers are grouped into 4 tiers:
Tier 1: Large top-tier market makers from traditional finance
Tier 2: Crypto-native market makers
Tiers 3 and 4: Smaller institutional borrowers
Our lending partner ensures minimal risk by diversifying the loan portfolio across multiple borrowers. The maximum exposure to each is based on their credit rating, ranging from 15% for Tier 1 to 5% exposure for Tier 4 borrowers.
Our lending partner requires borrowers to provide at least 100% collateral for all stablecoin loans. Only assets that are liquid and widely traded are accepted as collateral, including BTC, ETH, USD, USDC, USDT, XRP, ADA, AVAX and DOT.
When do I get my lending rewards?
Lending rewards for BTC, USDT and USDC are distributed daily. Usually during the morning hours.
What is staking and what are the risks?
While staking, you are supporting the security of a Proof-of-Stake blockchain by validating transactions on the network. The transactions are validated by staking node operators. When staking your crypto with Finary, you are delegating your assets to a staking node operator, while maintaining full ownership of your crypto assets.
For each validated transaction rewards are issued from the Proof-of-Stake Protocol. The amount of crypto rewards you can earn depends on how much competition there is in staking across the entire blockchain, therefore the APY on staking programs is always only an estimate based on historical performance.
When do I get my rewards?
For staked ETH rewards are distributed monthly, usually to the beginning of the month.
How to stake or lend on Finary?
To either stake or lend your crypto:
Click on Earn and pick the asset you want to stake or lend directly on the asset and click on Stake or Lend
Read the information carefully
Enter the amount you want to stake or lend
Accept our Terms & Conditions and confirm the operation
And it’s done!
How to unstake or redeem?
To either unstake your staked crypto or two redeem your lent assets, just do the following:
Click on the asset you want to unstake or redeem
Click on Unstake or Redeem
Enter the amount you want to unstake or redeem
Confirm the operation
And it’s done!
What assets can I stake or lend?
* The rewards rate is based on the estimated protocol rate, which is subject to change.
** Special February offer
What are the costs and fees?
Finary is not charging any fees on yield. However, for the staking program, our Staking Partner is taking 15% from the rewards paid out.