Over the past year, amid an increase in digital asset adoption by institutions and individual investors, interest continues to grow around how these instruments may be leveraged to earn passive income. With interest rates near all-time lows, and digital assets showing promise as an established alternative investment and portfolio diversifier, investors are focusing on new ways to earn.
To meet this demand, a growing number of lending services have emerged to help investors leverage their tokens. For those with an established crypto portfolio, the playing field is beginning to level when it comes to services that offer yield, begging the question, why not benefit from the liquidity you provide to the market? However, with the addition of more platforms and protocols providing access to decentralized finance (DeFi) services, commitments to transparency and safety can vary.
Take yield farming, for example. This is a highly volatile and often high-risk practice of staking token pairs to make markets for DeFi platforms, often enabled by lending services similar to those found in more traditional finance markets. These exchanges and dedicated lending platforms may boast interest rates on digital asset pairs that are initially relatively high, however, as is often the case, when the market tends to decouple, those holding the digital asset pairs in question often absorb the risk in the form of a loss.
In such cases, when returns are often overstated, the risks are often understated.
In contrast, Bullish is a Gibraltar regulated exchange that uses best-in-class practices and proprietary algorithmic guardrails, transparent seven day fixed lockups — along with deep liquidity backed by contributions from the multibillion-dollar Bullish Treasury — to enable safer, more stable income at scale.
One key to our platform’s stability is Bullish Liquidity Pools, which are among the deepest available. These “pools” are made up of paired assets, for example BTC and USD. Proprietary algorithms reward participants who join the pool and facilitate trades while maintaining the asset pair’s balance to accommodate market demand with passive yield.
Bullish provides a path to building a yield-based crypto investment portfolio on a Gibraltar regulated exchange. It is built by industry veterans and ready to meet the needs of an evolving digital marketplace. This structure empowers Bullish clients to earn passive yield, as they benefit from the fees generated by automated market making as well as by margin lending.