CarryTrade 101

How it Works

We work with investment houses and banks in different countries, seeking the best zero-risk yields possible. In most countries, yields are in local currency, but sometimes they offer USD or EUR based yields.

Each rate has a term, such as 1-month, 3-months, or 12-months. The main page lists the rates, term, and currency available. Typically, but not always, the rate is higher for a longer term duration.

Pools: Each rate pool has a minimum and maximum size. Unlike other lend/borrow platforms, we must "batch" deposits before offering the yield. If you "commit" to a specific pool, then we will contact you when the pool is ready for deposit. You will have 24 hours to engage the smart-contract for that pool, then it becomes "closed".

Exchange Rate: The smart-contract records the official exchange rate at the beginning and end of the term. At the end of term, you get the principal and interest at the current official rate. See our examples.

Official Rate Oracle: We use the Pyth protocol for instantaneous exchange rate quotes. See https://pyth.network to understand how this oracle works.

Trust-less Contracts: Small deposits (eg: <$10,000) are accepted automatically. Large deposits will require some (minimum level) KYC for proof of non-money-laundering efforts by our protocol.

DYOR: As always, learn for yourself how interest rates and exchange rate differentials will work.