As an organization that coordinates and distributes mining shares, Poolin is constantly working to enhance our products and diversify our services to the mining industry. Earlier this month, Poolin Wallet announced partnering with Three Arrows Capital and BlockFi to offer savings and loan options (see Coindesk).
Miners with Poolin can now allocate payouts directly into savings and loan accounts without paying transaction fees. Poolin has a promotion (available for a limited time) that also covers on-chain transactions to and from the Poolin wallet.
Miners with Poolin can set Poolin wallet as their withdrawal address and use their existing Poolin accounts to log into Poolin, available for download on iOS and Android. Accounts can also be linked with Apple ID, Google, Email, and/or phone number. For iOS users, an initial deposit of $10 USD worth of cryptocurrency or stable coin will activate the savings and loan features.
Poolin wallet supports all currencies mined by Poolin, Tether (USDT) and New USD (NUSD) stablecoins, as well as Dogecoin (DOGE), VCash, and Handshake (HNS).
Saving with interest bearing accounts gives Poolin miners the ability to discover higher yields from their treasuries with minimal overhead. Funds needed to pay electricity can still be leveraged in the short term by using a flexible liquidation option, while longer term savings can be locked into higher yield contracts. Both instances allow miners to make marginally higher returns from their block reward revenue.
Poolin only provides interest bearing contracts for Bitcoin, Tether, and Ethereum, which are divided into flexible and locked options. Both types are calculated using an annualized rate of return (ARR). The rates for locked savings range from 3.5% to 7% ARR whereas flexible deposits range from 3% — 4%. The locked savings cannot be liquidated until the contract matures. Flexible savings accrue compound interest daily and can be liquidated freely at any time.
In addition to savings accounts, Poolin offers two types of lending services: flexible and term loans. Access to extra capital is critical for miners needing to cover expenses or build out their infrastructure, but operators are forced to sell their bitcoin immediately to pay off electricity bills or buy new equipment. With bitcoin collateralized loan options, miners can deposit their bitcoin as downpayment for a loan and get it back once they have paid back the principal with interest. This is especially useful when the price of bitcoin increases because the miner can cover operational expenses while capturing the price appreciation of the collateralized asset.
Borrowing contracts are calculated using a Loan-to-Value (LTV) ratio where a percentage of the value of Bitcoin collateralized is loaned in USDT or NUSD. Flexible loans can be taken out and repaid anytime while term loans are repaid over a determined time period. Borrowers can change the LTV ratio to increase or lower their borrowing exposure according to the collateral value.
Interest rates are calculated using an Annual Percentage Rate (APR), where flexible loans are charged on a daily basis using compound interest. Here you can see an example with 1 BTC pledged as collateral with a 60% LTV ratio, the borrower receives $5784 USDT. Under a flexible loan plan, the borrower pays $0.95 USDT of interest per day, giving the borrower at most 360 days to pay off the principal.
Term loans use the same APR, but the interest is paid on a monthly basis and the principal is due in full at the end of the loan period. Loan periods can be 30, 90, 180, or 360 days all with 5.88% APR. In order to fulfill payments, borrowers must deposit USDT into their loan accounts from their wallet. The funding and loan accounts are kept separate to optimize security.
Poolin wallet also supports BIP 0021 transfers which allows users to add a note and specify the amount of bitcoin to receive like an invoice. Users can generate new addresses and assign specific labels to organize different sources of incoming funds. Recurring addresses are then saved in the address book.
Users can find the address book in the account tab in addition to personal settings such as flexible KYC, security, language and currency settings, contact and support, and sharing options.