Thinking about jumping into Decentralised finance (DeFi)? Start exploring this new movement through ICONOMI Earn powered by Anchor protocol.
What is ICONOMI Earn?
ICONOMI Earn is built on Anchor protocol. It is the unique DeFi protocol offering low-volatile yields on stablecoin deposits. Once you allocate Tether, you are buying aUST tokens. These tokens enable holders to collect value from the Anchor protocol simply by holding them. This product is Dollar-pegged, so there is a $-EUR exchange rate impact.
How is the performance fee calculated?
The performance fee is set at 15% and is collected only from profits you make using ICONOMI Earn. If you deposit 1000€ to ICONOMI Earn, which increases to 1100€ (100€ profit), 15€ will be deducted from the profit upon exiting, allowing you to collect 1085€. In other words, you get to keep what you invest while earning 85% of the profits. The performance fee will not get collected if you do not earn any profit. Your principal will not get affected, and you will get 100% of it when exiting.
How is it possible that I see a negative return if the yield is around 19% APY?
Entering ICONOMI Earn means your assets are moved to a stable coin UST - aUST. Generally, aUST moves around the stable value of 1 UST = 1$. The asset is still volatile, so the real price ranges between 0.92$ and 1.05$. This means that your investment may vary in the first few days due to stable coin volatility. Once the first yield kicks in, you will no longer see negative returns.
What are the risks that come with ICONOMI Earn?
ICONOMI Earn utilises yield generating assets such as aUST provided by decentralised protocols and services (DeFi), which means your assets are moved outside of ICONOMI Custody. So far, Anchor has proven to be stable and extensively tested, but the software or smart contracts behind it might contain bugs or security vulnerabilities. We suggest every user adjust their investment accordingly to the risk.
Can the yield amount change in the future?
Yes. The interest on ICONOMI Earn fluctuates according to the supply/demand dynamics of the yield generating underlying asset - in this case, Anchor. To follow the available amount of yield reserves in anchor, please visit the following page: http://www.mirrortracker.info/anchor. Once the yield reserve is depleted, it will get filled by the LUNA governance vote, or the yield amount will drop.
Why is buying in or selling ICONOMI Earn not instant?
This is connected to underlying protocol management. Each time a new buy or sell happens, the assets that are currently locked in Anchor (in exchange for the yield) have to be unlocked and transferred to ICONOMI custody and then back to our users. This could take slightly longer than with other ICONOMI transactions.