Fixed yield rate

Earn a fixed yield rate on your assets.

88mph offers a fixed yield rate with a custom or preset maturity for various supplied assets, such as DAI, USDC, WBTC, ETH, etc. When users/protocols supply assets, 88mph acts as an non-custodial, fully on-chain intermediary between them and third-party variable yield rate protocols to offer the best fixed yield rate on their capital.

How it works

  1. Deposit assets: deposit any amount of assets with a maturity between 1 and 365 days to get the displayed fixed yield rate at maturity.

  2. Deposit generates variable APY: your deposit generates a yield at a variable rate on third-party protocols, such as Aave or Compound, until it reaches its maturity.

  3. Get deposit tokens: depositors receive an NFT (ERC-721) representing their custom-maturity deposit or ERC-20 tokens if it's a preset maturity. It gives you full control over your deposits.

  4. Get MPH rewards: by using 88mph, get MPH tokens linearly vested over the deposit duration. Claim rewards whenever it fits your schedule.

  5. Stake MPH: stake MPH tokens to receive 88mph protocol's revenues and voting rights.

  6. Withdraw: withdraw, top-up, roll over your deposit + fixed-rate yield at any time.

For example, a 12-month deposit of 100 DAI will deliver a fixed-rate yield after 12-month of variable yield generation on a third-party protocol. If the fixed yield rate at the time of deposit was 10%, then the user get 10 DAI of yield when the deposit reaches its maturity one year later and some MPH tokens during the deposit duration.

To learn more about how 88mph converts a stream of variable-rate yield into fixed-rate yield, check out the section below and our risk mitigation page.

Fixed yield rate model

88mph determines a deposit's fixed yield rate based on the 30-day exponential moving average (EMA) of the variable yield rate of the underlying yield protocol, such as Aave or Compound. 88mph offers between 37.5% and 75% of the EMA as the fixed yield rate based on the length of deposit, with longer deposits earning a lower rate.

For example, if at the time of deposit the 88mph's 30-day EMA of the Fixed APR asset is 10%, a 7-day deposit of 100 DAI will earn a 7.5% fixed yield. A 12-month deposit of 100 DAI will earn a 3.75% fixed-rate yield.

Withdraw at any time

Each deposit has a maturity date, after which the owner can withdraw the deposited assets plus the fixed-rate yield.

Before the maturity date, the user can also withdraw either part or all of a deposit, though the fixed-rate yield would be forfeited, and an additional early withdrawal fee would be applied (0.5% of the withdrawn amount).

The forfeited yield would continue generating yield on third-party yield protocols to improve security. The withdrawal fee would be distributed to MPH stakers as protocol revenues.

Topping up a deposit

The user may top up a deposit before reaching its maturity date, which essentially creates a new deposit with the same maturity date at the currently offered fixed yield rate, except it is merged with the existing deposit.

There are two benefits of topping up a deposit rather than creating a new one:

  1. For regular users, the gas cost of topping up a deposit is cheaper than creating a new one.

  2. For protocols, only a single deposit needs to be kept track of, reducing the amount of accounting needed.

Rolling over a deposit

After a deposit is mature, the user can roll it over to create a new deposit using the principal + fixed-rate yield of the old deposit. The maturity date is customizable just like regular deposits.

The benefit of rolling over a deposit rather than withdrawing a deposit and creating a new one is the cheaper gas cost and fewer number of transactions.

Deposit NFTs

After making a custom-maturity deposit, the user receives an ERC-721 NFT (Non-fungible token) that represents the ownership of the deposit and its fixed terms, which can be transferred or traded like regular NFTs.

Users have the option to customize the NFT's metadata: title, description, image, etc.

It's an experimental feature allowing everyone to mix creative content with decentralized finance. For example, you can attach a GIF from your favorite crypto artist to a deposit and hang it up on a wall, staring at it every day, knowing that it has an intrinsic value generating a yield at a fixed rate.

Deposit NFTs are not burnt at any point, to preserve their artistic value.

Preset maturity

A deposit's maturity refers to the last date of a deposit's term. 88mph protocol allows users to customize the deposit maturity by selecting the number of days after which they will be able to withdraw their principal + fixed-rate yield earned. The maximum maturity available on 88mph is currently 365 days. Users can withdraw their principal at any time.

Alternatively, users can mint zero coupon bonds (ZCBs), which are essentially deposits with preset maturities (e.g. March 1, 2022). ZCBs are ERC-20 tokens that can be easily traded on exchanges such as Sushiswap and Uniswap. ZCB holders can redeem their ZCBs one-for-one with the underlying asset (DAI, USDC etc.) after the maturity.

Unlike custom maturity, preset maturity doesn't allow early withdrawal of the principal. But you can sell the principal at a discounted market price before it has reached its maturity on the upcoming SushiSwap ZCB/baseAsset trading pools (e.g ZCB-DAI-0922/DAI).

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