Earn The Highest BNB Yields With USDX Minting Rewards
Exceptionally Rich Yields, Exclusively for BNB Holders.
The Kava lending platform, a Binance Launchpad project, is offering BNB holders 3,848,000 KAVA over the course of 52 weeks as rewards for staking BNB and minting USDX, the platforms USD-pegged stable coin backed by the worlds largest cryptocurrencies.
This article outlines the details of the USDX Minting Rewards program, how you can participate, and how it compares to other BNB yield products available to you.
What Is USDX Minting Rewards For BNB Holders?
To accelerate the creation and adoption of USDX, the Kava lending platform investors and community have just passed a vote creating a Growth Fund offering millions of USD value to fund USDX minters. BNB holders are the first group of USDX minters to receive these Kava Growth Funds.
How You Get Access to USDX Minting Rewards
Simple. Stake your BNB as collateral and mint USDX on the Kava lending platform. Rewards will be automatically calculated and distributed to you every week. You can stake your BNB through one of the many wallets providing access to Kava. You have the flexibility to stop staking your BNB at any time with no extra fees. Here is a list of a few popular wallets that currently support USDX minting:
How Much Yield You Earn On Your BNB
USDX Minting Rewards provides rich yields when you stake BNB and mint USDX on the Kava lending platform. Yields are variable and based on the total amount of staked BNB and USDX minted on Kava. There is no cap on the amount of BNB you can stake.
Below is a list of annualized BNB yields based on the total amount of BNB staked and USDX minted in Kava. It assumes all BNB stakers mint the same ratio of USDX. If you mint more USDX you will earn more.
At lower total amounts of staked BNB the annualized yields are exceptionally rich and become more modest as total staking levels increase.
Example: If you stake 1,000 BNB to mint USDX and the total amount of BNB staked is 150,00BNB then you will return a 103% yield on your BNB or a 1,030BNB value annualize return (1,000BNB x 103%) — on top of your initial 1,000BNB principle. If you stake an additional 1,000BNB you will earn an additional approximate 1,030BNB value annualized return on top of that principle as well.
However, if you stake 1,000BNB and the total amount of staked BNB is 500,000BNB you will return a 31% yield on your BNB or a 310BNB value annualized return (1,000BNB x 31%) on top of your initial principle.
What this demonstrates is that BNB holders who stake BNB when the total amount of staked BNB is low will earn exceptionally higher yields than when the total amount of staked BNB is large. This can be thought of as a premium earned for being an earlier contributor to the network, as more BNB holders contribute that premium diminishes.
How To Redeem Your USDX Minting Rewards?
Every Wednesday at 14:00UTC weekly USDX Minting Rewards are distributed and made available to USDX minter. Distributions are calculated and released automatically in protocol. These are your weekly pay days, and depend only on the amount of BNB you stake to mint USDX and the total amount of staked BNB to mint USDX.
USDX Rewards are opt-in only, you must redeem your rewards within a 2 week period after distributed or they go back to the Kava Growth Fund pool. Rewards can be easily redeemed through any of the wallet providers listed above.
Rewards are paid out in KAVA tokens and have a 52 week transfer restriction. You can stake your rewards for extra yield. For more information on KAVA staking yields see here.
How Does USDX Minting Rewards Compare To Other BNB Yield Products?
To help you make the most informed decision on your BNB position, we’ve outlined and compared other BNB yield products.
Binance.com offers a number of BNB yield products to BNB holders. Below is a list of the top products and the associated yields. For details on how these yields are calculated, you can read Just How Much Yield Does Binance.com Offer You for Being a BNB Holder?
BNB Flexible Savings: 0.22% annualized Yield
This product is described as a flexible income high-cap (5,000,000 BNB per individual) savings account which earns a 0.22% estimated annual yield.
Discounts on Trading Fees: ~8–19% Yield
BNB holders can qualify for discounts on trading fees at Binance.com when they hold certain amounts of BNB and use BNB to pay the actual trading fees. Given reasonable assumptions, those discounts have been backed out to yield on your BNB.
Spot Trading: ~19% Yield. BNB Holders get a 25% discount on Spot trading fees which backs out to a ~19% Yield for “VIP 2” traders.
Futures Trading: ~8% Yield. BNB Holders get a 10% discount on Futures trading fees which backs out to a ~8% Yield for “VIP 2” traders.
Margin Borrow Interest: ~4% Yield. BNB Holders get a 5% discount on margin to borrow interest which backs out to a ~4% Yield for “VIP 2” traders.
Binance Launchpad: ~2.47% Yield
Binance.com offers BNB holders exclusive access to the portfolio of projects offered in its Binance Launchpad product. Given the amount of BNB you need to hold and total Binance Launchpad portfolio P&L weighted against BNB price, holders of BNB earn a 2.47% yield on this product. Detailed calculations found here.
Who Is The USDX Minting Rewards Best For?
USDX Minting Rewards work especially well for BNB holders who intend to use the Kava platform to increase their BNB exposure regardless, as they are simply earning extra yield on a product they would consume anyways.
If you are a BNB holder who is on the fence, then it is important to consider that the USDX Minting Rewards are variable based on the total amount of staked BNB and USDX minted in Kava. However, the USDX Minting Rewards yields are considerably higher than BNB Flexible Savings in almost every scenario.
If you are an active trader on Binance.com then you may consider budgeting the amount of BNB to cover your respective VIP level to capture the discounted trading fees, and any remainder you can consider the cost / benefit of participating in USDX Minting Rewards. However, at lower total amounts of staked BNB, the richness in BNB yield may surpass any BNB yield product.
Finally, it’s worth noting USDX Minting Rewards are locked for 52 weeks. As such, this return profile is best suited for BNB holders who are in a position where the high yields to yield liquidity tradeoff makes sense. To be clear, this liquidity tradeoff is only in yield generated from USDX Minting Rewards compared to other BNB yield products, the BNB staking is flexible and you can unstake your BNB at any time with no extra fees.
Why Is Kava Doing This?
The Kava lending platform needs USDX to be created and used throughout the global financial system. With more USDX comes more integrations with wallets, exchanges, and financial services, getting USDX into the hands of as many users as possible. In short, the more USDX that is created and used, the more value for the platform.
To expedite the process of getting USDX out to the world, the Kava platform investors, community, and developers have voted to pass the value that is generated from the minting of USDX with BNB back to the BNB holders. The Kava community is passing the value directly to the BNB holders who are making it all possible! ❤️
We hope this article has been helpful. In preparation for USDX Minting Rewards for BNB holders, we looked at all the yield products for BNB holders to make sure you get the best yields with your hard earned BNB! To learn more and start earning USDX Minting Rewards register at https://www.kava.io/registration!
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Disclaimer: This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making investment decisions.
