Interest Rate

The yield rate is mostly determined by the trading volume in the Curve&Convex pool. The more transactions and active the market, the higher the rate.

At DSF, we don’t offer a fixed interest rate because we’re not a bank, nor do we manage users’ funds. Instead, we are a service solution that transforms a complex liquidity provision strategy into a simple, low-risk tool for generating passive income. Our approach is transparent, efficient, and tailored to the dynamic nature of decentralized finance (DeFi).

Dynamics of the yield rate

On the graph you can see the 1-year inerest rate dynamics, with peaks on the most unstable periods of the crypto market.

The average annual return rate for 2024 is 17%, with daily fluctuations ranging between 17% and 35%, depending on market conditions.

Below, we’ll explore the factors that shape these rates and how our product ensures stability even in challenging times.

Factors Influencing the Interest Rate

  1. CRV Token Price DSF earns rewards for providing liquidity in the form of CRV tokens. These tokens are converted into your original asset through smart contracts for your convenience and reinvested into the strategy. As the Curve ecosystem grows with new products and partners, we expect further recovery and growth in the CRV token price, boosting the interest rate. The growing community's active participation also supports this upward trend.

  2. Stablecoin Trading Volumes on Curve The interest rate is influenced by the trading fees generated on the Curve exchange. Since Curve primarily operates with stablecoins, trading volumes increase during periods of market instability when traders lock in their profits or losses using stablecoins. This results in higher interest rates during active trading periods. Conversely, during quieter market phases, such as trend reversals or post-liquidation periods, trading volumes—and consequently the interest rate—may slightly decrease.

  3. Total Value Locked (TVL) in Curve Pools There is an inverse relationship here: as more investors add liquidity and TVL increases, individual rewards decrease. However, as the CRV token continues to recover, this impact on the interest rate diminishes.

The combination of these factors allows us to offer positive interest rate, regardless of market direction. You can always monitor performance directly in our application.


Proof-of-Time Performance

The yield you earn is added on top of your deposit and may fluctuate, but it will never go negative. This is because returns are generated from trading fees on Curve, where trading activity continues regardless of market trends.

We have a proof-of-time performance track record spanning two years. Since our protocol’s launch in 2023, the crypto market has endured multiple crises. During these critical moments, we have recorded our interest rate performance, demonstrating that our users consistently benefit—even when the stock market collapses or the crypto market suffers cascading liquidations.

When other market players getting liquidated and losing capital, our users have a stable income, that is why our clients use our strategy to hedge risks and diversify their portfolio both on rising and falling market.

Last updated