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Yield up to 15%
Do you have USDT (Tether) and want to achieve higher returns on your dollars? Then check out the USDT Vault from Knaken! This is a smart investment where you deposit your USDT and can earn up to 15% yield per year!
The Knaken Vault
The Knaken Vault is an innovative investment solution that provides access to wealth management, typically available only to professional investors. It allows individual investors to benefit from their digital assets by participating in carefully managed investment strategies, such as providing liquidity to exchanges, staking on decentralized networks, and yield decoupling.
The Vault employs expert asset managers who continuously work on optimizing investments and managing risks. This allows smaller, individual investors to benefit from an experienced management team, which was previously only accessible to investors with significantly larger assets.
Strategy: Liquidity for exchanges
The USDT Vault is all about providing liquidity to centralized exchanges. You lend your USDT for the short term to exchanges so they have more liquidity. In return for providing that liquidity, you receive interest.
The final yield is calculated based on the period you choose to lock in your coins and the size of your deposit in the vault. The longer the period and the more USDT we can utilize, the higher the return. Check the table below to gain better insight into the vault’s yields.
When choosing a Knaken Vault, it is crucial to carefully select the desired period. The Vault is closed during the chosen period, meaning you will not have access to your invested capital during that time. Therefore, it is essential to choose a period that aligns with your financial goals and needs.
How it works: Deposit your USDT and benefit from your investment
Deposit your USDT in the vault: You deposit your USDT into the Knaken vault.
Lending to exchanges: Knaken then lends your money to exchanges to provide liquidity.
Earn rewards: In return for providing liquidity, you are rewarded. We will make the earnings available within 24 hours before your vault’s end.
With the USDT Vault from Knaken, you can easily and smartly earn a return on your dollars. Deposit your USDT now and let your money work for you!
Risks:
Although the Knaken USDT Vault offers attractive yields, there are some potential risks to consider before investing:
1. Tether third-party risk
This risk refers to the reliance on the value and stability of Tether (USDT), which is managed by a third party. The value of USDT is pegged to the US dollar, but any change in confidence or solvency of the issuing entity may lead to fluctuations in the value of USDT. As a result, investors may experience capital loss due to fluctuations in the value of their USDT investments.
2. Exchanges third-party risk
This risk relates to the trust in third parties, such as the exchanges to which your USDT is lent. If they unexpectedly go bankrupt or make poor decisions, investors may receive lower returns or even lose their money. Exchanges to which USDT is lent may also have operational risks such as technical issues, fraud, or insolvency. If these exchanges default or cannot pay higher interest rates, investors may face losses.
3. Market risk
Market risk consists of multiple factors that affect the returns of investments in the USDT Vault:
Volatility: Cryptocurrency markets are known for their volatility. Fluctuations in the value of USDT or other investments related to the USDT Vault may lead to unpredictable returns, resulting in potential losses for investors.
Liquidity risk: This involves the risk that investors may have difficulty selling their positions quickly without significantly disturbing the price of the asset. If liquidity in the cryptocurrency market decreases, it may also impact the recovery of invested capital and earned interest, as well as the ability to quickly switch between investments.
Regulatory risk: Changes in national and international laws and regulations may impact the functioning of the USDT Vault and market behavior in general. This could affect the value and returns of the investments.
Macroeconomic risk: Large-scale economic factors such as recessions, inflation, geopolitical tensions, and changing monetary policies can affect the entire economy. Such macroeconomic shifts can lead to unpredictable market conditions and impact the performance of the USDT Vault.
Knaken Cryptohandel B.V. is registered with De Nederlandsche Bank N.V. (DNB) as a provider of crypto services. DNB supervises Knaken Cryptohandel B.V.'s compliance with the Money Laundering and Terrorist Financing (Prevention) Act and the Sanctions Act 1977. Knaken Cryptohandel B.V. is not subject to prudential supervision by DNB or conduct supervision by the AFM. This means that there is no supervision of financial requirements or business risks and there is no specific financial consumer protection.
Investing in crypto-related products involves significant risks.
