Vesper Finance
Published in

Vesper Finance

Vesper Earn: An Essential Component for Weathering a Bear Market

When you deposit a stablecoin and earn yield in crypto, you get the best of both worlds in a tough market.

By many definitions, crypto is in a bear market. Bear markets are an opportunity for the industry to build the next transformative technologies without distraction. And certain products — like Vesper Earn — enable a new way for DeFi users to boost their portfolios amidst volatility.

Vesper’s Earn pools enable users to deposit one token and earn yield in another. Check out some examples of how the technology can work for the benefit of users in the current market.

Let’s start with Wrapped Bitcoin, WBTC.

DAI → WBTC: Stack Some Satoshis

Although Bitcoin is a volatile asset, it can show signs of resilience compared to altcoins.

This projection assumes that $25,000 in DAI is deposited to the Vesper Earn DAI-to-WBTC pool on Jan. 1, 2022 (while WBTC is at $47,765), and sits there until June 21 (when WBTC is at $21,400). It also assumes that the pool was averaging 4% APY during that period.

In about six months, you could theoretically accumulate $235 in WBTC.

DAI → LINK: Climb the Ranks of the Link Marines

Assume that you deposited $25,000 in DAI to the Vesper Earn DAI-to-LINK pool on Jan. 1, 2022 (when LINK was at $20.58), and let it sit there until June 21 (LINK: $7.38). Let’s also assume that the pool was averaging 4% APY during that period.

In about four months, you could theoretically accumulate 37.45 LINK without lifting a finger. On the other hand, if you took that DAI and bought $25,000 worth of LINK, you’d end up with about $8,965.

DAI → DPI: Gain Exposure to Several DeFi Assets

Accumulating The DeFi Pulse Index (DPI) token is a great way to gain exposure to a capitalization-weighted index that tracks the performance of DeFi assets across the market.

It offers exposure to DeFi assets such as Yearn, Uniswap, Maker, andAave. Let’s see how the DAI-to-DPI pool performed under the same market conditions and APY used in examples №1 and №2.

The result? You could theoretically accumulate $165.24 in DPI in a few short months.

Please keep in mind that:

  • Historical data is used to approximate average APY in these illustrations.
  • All examples presume that the depositor holds on to their stablecoin (DAI, in this case).
  • And, as the rapid-talking radio announcer might say, past performance is not indicative of future results.

These are just a few theoretical examples of what Vesper Earn can offer to users in a well-audited, simple-to-use way. Try it out for yourself and put Vesper’s technology to work for you!

Interested in learning more about Vesper Earn’s benefits? Join the conversation in Discord.

As always, remember to DYOR and understand the inherent risks involved with DeFi.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store