OpenTrade has rolled out a new category of stablecoin yield products, in collaboration with Figment, an independent staking provider, and with custodial support from Crypto.com.
With support from Figment staking and custodied by Crypto.com, the first of OpenTrade’s products, OpenTrade Stablecoin Staking Yield Powered by Figment, is set to provide an approximate 15% APR on stablecoins, based on historical data and subject to market conditions.
The solution comes as a combination of staking rewards and hedging against the underlying price volatility of staked tokens, being assisted by a dedicated Figment-run validator merged with OpenTrade’s stablecoin yield infrastructure. As part of this launch, Crypto.com will act as the custodian of staked assets and facilitate transactions.
Reducing risks while facilitating higher stablecoin yields
With institutional customers seeking higher yields on stablecoins and reduced risks typically associated with lending and DeFi, Figment plans to deliver its ‘safety over liveness’ approach to offer higher returns with minimal risk.
Through OpenTrade Stablecoin Staking Yield Powered by Figment, institutional customers are set to benefit from:
- An infrastructure that has legal safeguards not otherwise available in DeFi lending;
- Crypto.com and OpenTrade have an agreement that allows SOL tokens to be custodied in a segregated account, over which investors are provided with a security interest. Also, assets are completely segregated from the assets of the exchange and any other entities;
- 24/7 availability of identified counterparties.
Available through the Figment platform and APIs, the product enables customers to deposit stablecoins via Figment, start earning interest immediately, and withdraw any stablecoin amount, regardless of when they choose to do so.
Furthermore, talking about this milestone, Jeff Handler, Co-Founder and CCO of OpenTrade, stated that, considering that stablecoin usage and demand for stablecoin yield solutions amongst exchanges, wallet providers, and other fintech companies have continued to increase, the company has been collaborating with Figment to develop and bring a new offering that optimises existing options in the market. Stablecoin Staking Yield comes as a result of these efforts and allows any company with stablecoin to access a new category of yield options which deliver a combination of returns and solid protections.
