88mph.app — A symbiotic relationship between a platform and its users
The 88mph Ecosystem
88mph is a platform that offers a unique way for users to participate in the decentralized finance system by offering fixed-rate interest in deposits, floating-rate bonds, ERC-20 zero-coupon bonds (soon), and passive income generation through single-asset staking ($MPH). Essentially, one can deposit their assets into the platform, custodian-free (the only custodian being the smart contract), and begin earning passive income while their deposit earns fixed-rate interest. It should be noted that 88mph shares 100% of the protocol’s revenues with those staking their MPH.
88mph offers an in-house “zapper” that allows users to easily convert their assets into the desired deposit all with the click of a button.
Deposits are then used by the smart contract to earn interest and farm on various platforms like Aave, Compound, Harvest, and Yearn. E.g, the smart contract yield-farm COMP or FARM on these platforms and sells its yield weekly, which is then converted to DAI and distributed to users staking MPH on the 88mph.app platform. Staking rewards are also generated and distributed via the 10% fee assessed on interest generated by fixed-rate deposits. This fee is already deducted in the displayed rate by the interface for the end user.
As TVL (total value locked) increases via deposits, so does the yield earned by the smart contract. As a result, weekly DAI rewards increase.
This increase in weekly DAI rewards incentivizes further deposits in order to not only earn fixed-rate interest on deposits, but also to earn MPH rewards and deposit those rewards into the staking contract in order to capture this passive income.
One of the barriers to entry for much of traditional finance’s participants is the volatility in crypto. Institutions have an obligation to protect their clients’ capital while at the same time trying to grow it. Crypto’s volatility and wild swings, while potentially highly profitable for the average crypto trader, are often a turn-off for users coming from a traditional finance background. However, it is undeniable that the spotlight is on cryptocurrencies right now, and while institutions are gobbling up swaths of bitcoin, they’re still figuring out how to offer their clients exposure to it.
88mph offers exposure to crypto without the risks associated with price volatility. Users can deposit stablecoins, earn fixed-rate interest, MPH rewards, and earn passive rewards in the form of stablecoins. This allows users with a risk-adverse appetite to participate in the custodian-free space that decentralized finance offers, while still managing their risk to price swings.
Let’s compare for a moment, shall we?
Ok, so above are some the interest rates that major banks are currently offering their clients on their deposits. Sure, they’re FDIC insured, but let’s take a look at what these same banks are now charging their other customers to borrow the same money that the other customer just deposited.
So, the bank takes a customer’s deposit, allows them to earn on average, less than 1% interest on their deposit per year, and then takes that same money, and charges another customer an average rate of 9–10% interest per year.
This is one of the things that makes 88mph so attractive. It allows the user to earn interest on their deposits that cannot be found in the traditional finance world. Yes, there are other platforms that offer interest on deposits — this is a very popular feature of the decentralized finance world, but 88mph is the only platform that offers its users both fixed-rate interest, upfront rewards, and the opportunity to earn weekly payments in decentralized stablecoin. 88mph also allows its users to withdraw their deposits any time they wish, regardless of maturation date, penalty free (any interest earned is returned to the pool, however).
In Summary
Users drive the 88mph economy. The entire economy relies upon users depositing their funds into the ecosystem. As the total value locked into the pools grows, so do the rewards paid out to users staking their MPH. As the price of MPH increases, it will become very attractive/more effective to deposit funds into the contracts in order to earn up-front MPH rewards (which can then be staked to earn passive DAI). This entire process recycles and continues to feed the machine. Users who are weary to purchase MPH and expose themselves to price volatility can simply deposit their funds into the contract, receive MPH rewards over a 7-day vesting period, and then stake those rewards to earn weekly DAI payments while their deposit matures and earns fixed interest. Sure, “number go up” is great, but allowing stable money to earn stable money is where the real magic is.
