It is no surprise that the decentralized finance (DeFi) ecosystem is as large as today. With over $75 billion locked in DeFi protocols, the ecosystem has shown explosive growth, and innovation is at an all-time high in the space. DeFi is building and creating solutions more than the mere swapping, yield farming, and liquidity mining on which the space has built its reputation.
One of the most exciting things about DeFi is the massive opportunities for users to earn a passive income, whether banked or unbanked. The alternative financial products and services on DeFi protocols have opened a previously closed financial ecosystem, allowing everyone to participate wherever they are in the world.
Generally, DeFi brings forth new approaches to earn a passive income for its users, including liquidity mining, yield farming, lending, and, most commonly, staking. While all these methods of passive income generation are popular in the crypto space, staking has become a favorite for DeFi users due to its simplicity. Users earn a passive income by putting up a portion of their crypto assets in a wallet (or smart contract) to aid in the proof-of-stake consensus mechanism.
Recently, DeFi protocols are exploring new mechanisms to offer more exciting rewards and help users generate passive income from cryptocurrencies. One such project, Safuu, offers more efficient passive income generation channels through its sustainable rebasing and auto-compounding features.
New Approaches to Generating Passive Income in DeFi
Safuu, or Sustainable Asset Fund for Universal Users, is “a DeFi project that rewards users with a sustainable fixed compound interest model through its unique SAP protocol”, its website reads. The platform offers one of the highest fixed APY for its staking participants (over 382,000% APY for the first 12 months), which is paid out every 15 minutes. Unlike other staking platforms that require the investor to stake their crypto manually, SAP gives the Safuu token automatic staking via a simple buy-hold-earn system directly on your crypto wallet.
Far from only offering staking rewards, Safuu also reinvests the rewards automatically, giving users more profit on their savings.
“Safuu is a company focused on DeFi innovation that creates benefits and value for Safuu token holders”, said Bryan Legend, the CEO of Safuu.
How does the Safuu Protocol Bring a New Light to DeFi?
As explained above, there are multiple ways for DeFi users to generate passive income in the ecosystem. Nonetheless, as the industry scales and more people enter the space, doubts about whether the system will be sustainable and profitable enough for its users. Safuu mitigates this fear by providing a fully scalable, stable, and sustainable structure that ensures high APY rates and profitability are maintained throughout its life.
First, Safuu ensures its platform is low risk via the Safuu Insurance Fund (SIF), which collects 5% of all trading fees on the platform. This helps sustain and back the staking rewards by maintaining price stability hence greatly reducing downside risk. The SIF uses an algorithm that backs the rebase rewards, supported by the 5% trading fees sent to the SIF contract.
In simple terms, the staking rewards (rebase rewards), distributed every 15 minutes at a rate of 0.02355%, are backed by the SIF parameter, thus ensuring a high and stable interest rate for $SAFUU token holders. Additionally, the Treasury provides support to the SIF in an extreme price drop of the $SAFUU token.
Safuu has also incorporated the “Fire Pit”, an exciting feature that automatically burns $SAFUU tokens. This controls the circulating token supply, meaning additional value to the remaining tokens. The ‘Fire Pit’ burns 2.5% of all $SAFUU token market sales within the same transaction. This means that the more volume of $SAFUU tokens traded, the more tokens are burnt in the ‘Fire Pit’. With huge volumes of $SAFUU paid out in rewards, burning the tokens prevents the supply from getting out of hand.
Finally, Safuu, as the name suggests, provides easy and safe staking for its users. The staked $SAFUU tokens always stay in the investor’s wallet, removing any third parties and intermediaries, meaning the investor gets all the profit. As explained, users will only need to buy and hold their tokens in their wallets to earn interest yield and auto compound their rewards automatically.