POKKET, a platform that offers structured savings products for dozens of different cryptocurrency tokens, has just announced it will be expanding its range to support an additional 15 different ERC20 tokens.
This update comes just weeks after POKKET passed more than $4 million in customer deposits – following dramatically increased demand for high-yield savings products in recent months.
Each of POKKET’s structured saving plans last for exactly one week, after which they will be settled. These plans come in three different flavors. Customers can either choose to create their savings plan in any of the more than 50 supported cryptocurrencies, or they can choose to have their returns paid out in Tether (USDT) or True USD (TUSD). Once a customer has selected their account type and the underlying asset, they’ll then be locked in for one week accruing interest.
Depending on the performance of the underlying asset they choose, these savings products will be settled after one week in one of two ways. The savings amount will be paid out either in the original underlying token or in stablecoin. If the market price of the token after 7 days is at least 91% of its value at the start of the period, then the return will be paid out as the original savings asset (e.g. token or stablecoin) plus the additional interest in stablecoins.
Alternatively, if the value of the underlying asset is at or below 91% of its initial value, then the customer will be paid out in the underlying cryptocurrency purchased at a discount, plus the interest on top.
Although POKKET users are technically sellers of put options, they don’t need to worry about actually handling any of the leg work. Instead, POKKET works directly with hedge funds to sell these put options on behalf of the customer, which then receives the option premium as their interest. These savings products are market-agnostic and hence allow customers to turn a healthy profit irrespective of the prevailing market conditions.
The new range of tokens will be added to the platform between August 17 and 21, bringing to total number of supports assets up to 50. As it stands, this lineup includes most of the largest cryptocurrencies by market capitalization, including Bitcoin (BTC), Ethereum (ETH) and Chainlink (LINK), in addition to dozens of popular ERC20 tokens.
Customers can either deposit the underlying cryptocurrency directly to open a savings plan, or can opt to open their plan with Tether or True USD, and instead track the underlying cryptocurrency instead.
On average, POKKET’s structured savings products boast an APR of 30%, but this currently varies between 2.6% and 416%, depending on the underlying cryptocurrency selected and the prevailing market conditions.
POKKET takes the security of its users and their funds extremely seriously. To ensure that customers are protected at all times, POKKET overcollateralizes all deposits by 110% and uses a combination of cold storage and stringent manual checks on every withdrawal to detect and thwart any suspicious activity.