Hey Edge readers,
This week's edition is brimming with exciting updates from Exponential! We are thrilled to announce the launch of direct bank transfers in the US, making it easier than ever to fund your Exponential account. Alongside this new feature, we're introducing two new USD stablecoin pools—designed to offer competitive yields with the lowest risk in DeFi.
Here's what we're covering this week:
- Your bank account deserves more 🏦
Direct bank transfers now available in the US.
- Elevate your dollars with Exponential 💸
Explore our new ‘Lowest risk’ stablecoin pools.
- Bitcoin ETFs debut in Hong Kong 🗞️
EigenLayer airdrop, Aave V4, and more.
Stay sharp. 🫡
– The Exponential team
Elevate your dollars with Exponential
We're excited to announce that, along with our new bank transfer feature, we're rolling out two new USD stablecoin pools here at Exponential. Designed with the highest safety standards in DeFi, these pools transform traditional savings into competitive earning opportunities. We breakdown each pool, how they work, and the safety measures in place to protect your investment.
Why park your cash with Exponential?
Think of our new offerings as the DeFi equivalents of your bank's USD savings accounts but with higher yield potential. It’s never been easier to earn yield on your cash. Enjoy low-cost trades, secure custody, and the assurance of regulatory compliance with our platform.
Aave USD Lending
Why choose Aave?
Aave V3 represents the latest in secure, decentralized lending—offering strong risk management features to safeguard your assets. Aave only allows high-quality, whitelisted assets as collateral, minimizing the risk of market manipulation and defaults. Every new asset undergoes a rigorous governance process before being accepted as collateral, with strict borrowing limits and collateral requirements in place to further reduce risks.
How it works?
- Deposit funds: Your USD is converted into USDC and deposited into the Aave V3 market on Arbitrum chain, where it's available for borrowing by other Arbitrum users.
- Earn interest: Interest accrues based on the utilization ratio—the percentage lent out versus total deposits. Higher utilization means higher interest. Traders may borrow USDC to leverage up their market positions, engage in yield farming, or for personal needs.
- Withdrawals: You have the flexibility to withdraw your funds at any time, unless the market faces unusually high demand, temporarily limiting liquidity.
Angle USD Fee Sharing
What makes this pool unique?
USDA is a well-audited, overcollateralized stablecoin from Angle that is designed to withstand adverse market conditions. Users can stake USDA into Angle’s savings solution (stUSD) to earn a competitive yield from protocol borrowing fees and real-world assets (RWA). Angle allows secured borrowers to mint USDA to get leverage on their DeFi positions or to simply let people get access to stablecoins while keeping their exposure to a volatile or yield-bearing asset.
- Safety and stability: USDA is backed by secured collaterals and tokenized RWAs that can be tracked on-chain. Every USDA can be instantly redeemed for any token used as collateral in the reserve (including during black swan events).
- Yield multiplier: Angle generates fees from its yield-bearing collateral assets and the interest paid by secured borrowers. Only users who stake their USDA in the savings contract are eligible to earn yield. Since this option is currently utilized by ~27% of the total USDA supply, those who participate effectively earn a 3.6x boosted yield.
- Transparency: You can see exactly where your money is going and how it's being used to generate returns. Angle provides real-time visibility into the stablecoin's reserves, so you can invest with confidence. The current collateralization ratio for USDA is ~118%.
How it works?
- Deposit funds: Your USD is converted to USDA, the stablecoin you will be depositing into the Angle savings system.
- Earn yield: Your deposited USDA (stUSD) begins earning yield immediately based on returns from borrowing fees and income-generating assets.
- Access anytime: There are no lock-up periods, so you can withdraw your funds along with the accrued interest at any time without penalties.
Getting started is easy
Ready to make your savings work harder? Setting up is straightforward:
- Transfer: Use our new bank transfer feature to move USD directly into your Exponential account.
- Invest: Choose a pool that matches your financial goals and risk tolerance.
- Grow: Start earning competitive yields immediately.
Don't let your money sit idle in a traditional bank earning minimal returns. With Exponential, step into the future of DeFi where safety meets competitive returns.
In the news
- Hong Kong debuts Bitcoin ETFs but price falters - Read
- Active users on Stacks network reaches record high - Read
- Fear of impermanent loss overstated - Read
- EigenLayer debuts EIGEN Token and new whitepaper - Read
- Aave proposes V4 iteration with a unified liquidity layer - Read