Phuture decentralized financial protocol has partnered with Notional protocol to create a USDC Savings Vault for clients jointly. Via the USV, investors would start earning 3.25% interest on their USDC holdings, according to the report.
Phuture Protocol Launches The USV Product To Reward USDC Holders
According to news, the Phuture DeFi protocol, in its aim to relieve inventors in the overall bearish market, has launched the USV interest-generating project. It collaborated with Notional protocol to build the USV project, which offers USDC holdings about 3.25% yields.
Furthermore, the report showed that the USV is Ethereum-based and uses USDC as collateral; hence, it rewards investors for holding USDC. Like any DeFi vault, USV has an automatic interest-generating smart contract that oversees all the reward-hunting tasks.
USV’s automated function enables users to receive vault rewards when they deposit USDC via the Phuture platform’s app or site. In addition, the vault rewards come from automated accumulations of deposit yields over time.
According to the report, Phuture has assigned Notional protocol to power the USV project with its bonds. Notional is a Defi protocol with about $86.5 million total locked that lends institutional investors bonds at a fixed rate.
Notional Protocol Powers The USV Products Via Its Bonds Offerings
Additionally, Charles Storry, a top executive at Phuture, said they partnered with Notional to get a steady source of bonds with fixed long-term interest rates to power the new product. He added that they use investors’ USDC deposits to buy bonds on Notional, which they store in a portfolio for USV products.
Furthermore, the founder of Notional protocol, Woodward Teddy, reportedly stated that Notional does not lock up users’ capitals. He continued that they only lock up users’ stablecoin deposits’ rates till maturity, which ranges from 3/6 months or one year.
Consequently, Notional’s set-up allows users to withdraw their deposits at any time; however, they can only have their vault reward after it reaches maturity. Similarly, users can retrieve their USDC deposits from USV at any time without difficulty, according to the reports.
Phuture protocol, which has a TVL of $520,000, particularly benefited from the fixed long-term interest rate Notional offers. Furthermore, it allows Phuture’s USV product to contribute 3.25% and 2.5% interest on USDC holdings for 6 and 3 months, respectively.
In addition, Storry revealed that USV only allocates capital on Notional protocol alone as of now. However, he added that they sometimes reallocate expired bonds, which they need to roll over to the highest interest maturity present on the platform.
Meanwhile, the announcement of the USV products created a positive surge in the price value of Phuture’s native token, PHTR. The token’s price pumped by 2.56% as it trades at $0.02, according to the 24-hour price chart.