Raenest Stablecoin Vault Explained

If you have USDC or USDT sitting in your Raenest wallet, you can put those stablecoins to work with Stablecoin Vault.

Stablecoin Vault lets you earn yield on your USDT or USDC balance. Your funds are deployed through DeFi protocols, where the yield can vary with market conditions. You can add money to your Vault and withdraw your available balance when you need it.

This guide explains how Stablecoin Vault works, how your interest is calculated, how to manage your funds, and the risks you should understand before getting started.

Stablecoin Vault is a Raenest product that lets you put your USDT or USDC to work and earn yield on your balance. Your stablecoins are deployed through DeFi protocols to generate yield, which varies with market conditions. You can add funds to your Vault and withdraw your available balance whenever you need it.

Using Stablecoin Vault is straightforward. You add USDT or USDC to your Vault, deploy your funds through DeFi protocols, and earn interest at the daily rate.

Open your USDT or USDC Vault in Raenest and select Add Money.

Enter the amount you want to add and confirm the transaction. The minimum amount you can add is 100 USDT or 100 USDC, depending on the Vault you're funding. You can also make multiple deposits as long as each deposit meets the applicable minimum and you have sufficient funds in the selected balance.

2. Your funds are deployed through DeFi protocols

Once your deposit is complete, your funds are deployed through DeFi protocols to generate yield. DeFi, or decentralised finance, refers to financial applications and protocols that operate using blockchain technology. Stablecoin Vault uses DeFi protocols to generate yield on USDT and USDC.

3. Your interest starts accruing.

Interest starts accruing 24 hours after your deposit is complete. Your earnings are then calculated using the rate applicable to each day. Because the rate can change from day to day, the amount you earn can also change.

4. Your interest is added to your Vault balance.

Interest earned is automatically added to your Vault balance. This means your earnings are added to your balance and can also contribute to future earnings.

Stablecoin Vault offers a variable yield, which means the rate can change over time based on market conditions. The rate displayed on the Vault is an estimated average rate. It helps you understand the potential return you could earn. The Vault currently displays rates of up to 5% p.a., but this is not guaranteed. Your actual earnings for each day are calculated using the rate applicable to that day.

APY stands for Annual Percentage Yield. It represents the annualised rate of return and can help you estimate your potential earnings. The APY shown in the app is not a guaranteed return. Because the rate can change based on market conditions, the rate you see in your Vault may change over time.

The rate displayed on your Vault is an estimated average rate. When we calculate your daily interest, we use the actual rate applicable for that day. You can see the “Interest rate for this day” in the details of each interest transaction. This shows the rate used to calculate that day's interest.

Interest is calculated based on your Vault balance and the applicable rate for the day. The daily calculation uses the annualised rate applicable to that day and your eligible Vault balance. Because the rate can change daily, the amount you earn may vary.

The rate used to calculate your interest can increase or decrease from day to day depending on market conditions. This means the amount you earn on one day may be different from the amount you earn on another day.

Yes. When interest is added to your Vault balance, it becomes part of the balance available to you and can contribute to future earnings.

For example, if you deposit $1,000 and earn $5, your Vault balance becomes $1,005. If your Vault earns interest again based on that updated balance, your previous earnings are already part of your balance. Your actual earnings will vary because the rate is not fixed.

Your Vault transaction history shows your Vault activity, including:

Each transaction includes the amount, status, date, and transaction ID.

For interest transactions, you can also see:

The Interest rate for this day shows the rate used to calculate that specific interest payment.

You can add money to your Vault and withdraw your available balance when you need it.

You can make multiple deposits into your Vault as long as each deposit meets the applicable minimum amount and you have sufficient funds in the selected balance.

The minimum amount you can add is 100 USDT or 100 USDC, depending on the Vault you're funding.

You can withdraw your available Vault balance at any time. Once interest has been added to your Vault balance, it forms part of your available balance and can be withdrawn along with your other Vault funds, subject to applicable withdrawal requirements and fees. Vault withdrawals are instant or may take up to 5 minutes to process.

A withdrawal fee applies. The applicable fee is shown before you confirm your withdrawal, so you can see exactly how much will be deducted and how much you will receive. The minimum withdrawal amount is 2 USDT or 2 USDC.

The exact fee is shown before you confirm your transaction.

Stablecoin Vault uses DeFi protocols to generate yield. Because these protocols operate in a changing market environment, yields are variable

Stablecoin Vault funds are not insured or protected by deposit insurance. The product involves DeFi protocols and carries risks associated with those protocols and the underlying assets.

This means:

Stablecoin Vault lets you put your USDT or USDC to work and earn yield on your balance.

2. Which stablecoins can I deposit?

Stablecoin Vault currently supports USDT and USDC.

3. What is the minimum deposit?

The minimum amount you can add is 100 USDT or 100 USDC, depending on the Vault you're funding.

4. When does my interest start accruing?

Interest starts accruing 24 hours after your deposit has been completed.

5. Is the interest rate fixed?

No. The interest rate can increase or decrease from day to day depending on market conditions.

6. Is the Estimated APY guaranteed?

No. The rate displayed on the Vault is an estimated average rate, not a guaranteed return. The actual rate used to calculate your daily interest may change.

7. How is my daily interest calculated?

Interest is calculated based on your Vault balance and the applicable rate for the day.

8. Are my earnings added to my Vault balance?

Yes. Interest earned is added to your Vault balance and can contribute to future earnings.

9. Can I withdraw the interest I've earned?

Yes. Once interest has been added to your Vault balance, it forms part of your available balance and can be withdrawn along with your other Vault funds, subject to applicable withdrawal requirements and fees.

10. Can I lose money?

Stablecoin Vaults involve DeFi protocols and carry risks associated with those protocols and the underlying assets. The yield is variable and not guaranteed.

Ready to put your USDT or USDC to work? Log in to Raenest and add your USDT or USDC to the Stablecoin Vault.