This option let you earn Annual Percentage Yield (APY) by depositing USDC into the decentralized lending platform (Lulo.fi).
Find this option in your home page > Invest > Crypto
How does it work?
Lulo deposits your funds into DeFi money-markets.
The yield comes from borrowers, who pay interest on over-collateralized loans.
Type of investments
Based on your risk preference you can choose between Protected Investments and Boosted Investments:
Protected Investments:
Earn a dynamic yield with built-in coverage from protocol failures, offering more security and stability.
These are designed for users who want a more secure DeFi experience, any losses from protocol failures are offset by Boosted Deposits. A portion of their interest is redirected to Boosted Depositors as compensation for coverage.
Potential risks: While Protected Deposits cover you against hacks or failures in the integrated dApps, this coverage does not extend to stablecoin depegs, underlying network failures, or if multiple protocols fail simultaneously. Lulo itself also has smart contract risk.
Boosted Investments:
Maximize your earning potential turning risk into reward. These deposits provide the capital to cover others and they are not protected against protocol failures.
These accept first-loss responsibility for Protected Deposits in exchange for higher returns. They earn baseline yields from the same integrated protocols plus a share of Protected Deposits’ interest. Boosted Deposits feature a mandatory withdrawal cooldown period (48 hours).
Potential risks: You could lose your full deposit in a worst-case scenario if multiple hacks occur or if the coverage required outstrips the available Boosted capital.
💡 Crypto is not risk-free and users should understand the risks in order to make proper financial decisions.