With YouHodler Dual Asset, you can earn excellent yields up to 365% APR.
YouHodler is a great platform where you can earn APY crypto interest rates. YouHodler dual asset combines the yield generation strategies from decentralized finance (Defi) with the simplicity of traditional FinTech platforms.
The result is an easy-to-use crypto wealth risk management product.
However, what are the risks, and how do you calculate the profit from the different possible outcomes?
No Financial Advice, Information only. Do your own research
What is YouHodler?
YouHodler is an online crypto platform offering several services to it’s customers, including:
- Crypto-backed loans
- Earn Crypto
- Exchange
- Multi HODL
- Dual Asset
- Turbo Charge
Read more in our full YouHodler review.
YouHodler Savings Account VS Dual Asset
YouHodler Savings Account
You should have the conservative part of your portfolio in the savings account. YouHodler recommends allocating 70 – 80% of your money to cryptocurrency and stablecoin savings accounts.
With a YouHodler savings account, you can earn up to 8% yearly with a guaranteed profit.
YouHodler Dual Asset
With the YouHodler dual asset product, you can generate additional profit from your crypto.
Here, you can extend your Yield Limit to $300,000 from $20.000. Each stake increases your limit by the input amount.
YouHodler dual asset lets you earn up to 365% a year. YouHodler has not a guaranteed profit like the savings account. All the profit calculations are given as estimates and potential profits.
Bitcoin BTC can sometimes be hard to find good yield APY for since there are limitations on Bitcoin liquidity in Defi. However, with YouHodler dual assets, even Bitcoin BTC can deposit and earn a yield of around 150% for different trading pairs. Also, see our article about what a Bitcoin BTC interest account is.
YouHodler Dual Asset VS Defi investment
YouHodler Dual Asset Step-by-step Guide
- Sign up with YouHodler and complete KYC
- Login to YouHodler and click on “Dual” in the left menu
- Choose a cryptocurrency pair from the assets list in YouHodler
- Select the input coin
- Select a staking plan (How many days do you want to stake, 1-7 days)
- When the staking time is finished, you will get your input coin or the other asset back, dependant on the market
YouHodler Dual Asset Calculation Example
No Financial Advice, Information only. Do your own research
We created a YouHodler Dual asset example with 5034.24 USDC as the entry amount.
As you can see in the screenshot below, this will give us 306.55% APR and last for 24h.
What are the possible outcomes from this YouHodler dual asset investment?
- Scenario 1: We will receive the payout in USDC if the FIL value is the same or higher than 5.32 USDC/FIL
- Scenario 2: We will receive the payout in FIL if the FIL value is below 5.32 USDC/FIL.
Both payouts will be worth 5076.52 USDC per FIL when we sign the contract.
Let’s make some calculations and see
Scenario 1: FIL is at, or above 5.32 USDC
If FIL is at or above 5.32 USDC/FIL, we will receive 5076.52 USDC in the payout.
Since we had USDC before, this scenario will increase our USDC holding, corresponding to a 306.55% APR.
306.55% corresponds to a 0.84% daily yield.
Conclusion: If the FIL price increases more than 0.84% over the 24h period, we would have earned more if we bought the FIL coin instead of the YouHodler dual asset.
Scenario 2: FIL is under 5.32 USDC
If FIL is under 5.32 USDC/FIL, we will receive 954.233218 FIL in the payout.
954.233118 corresponds to a buying price of 5.27569/FIL. So, if the FIL price is lower than 5,27569 after 24h, we would have achieved more FIL if we waited for 24h and then bought FIL for our 5034.24 USDC.
A drop from 5.32 to 5.27569 corresponds to a 0.84% drop.
Conclusion: If the FIL price decreases more than 0.84% over the 24h period, we would have got more FIL coins by simply waiting for 24h and after this by FIL for our 5034.24 USDC.
FIL USDC YouHodler Calculation Summary
- If you deposit stablecoins to dual assets, your number of stablecoins will increase in a bull market but convert into crypto in a bear market.
The crypto coins you will receive in a bear market will be worth less than your initial stablecoin deposit if the crypto coin decreases more than the APR you receive. In the above example, the crypto coin FIL has to fall more than 0.84% in a 24h period. In this case, you will receive FIL coins worth less than 5034.24 USDC, which was your initial investment.
All other scenarios are preferable for YouHodler dual asset investment.
- If you deposit crypto to a dual asset, your number of crypto coins will increase in a bear market but convert into stablecoins in a bull market.
The stablecoins you will receive in a bull market will be worth less than if you HODL your crypto if the crypto value increases more than the APR in 24h. In the above example, theFIL value has to raise more than 0.84% in 24h to outperform the YouHodler dual asset product.
All other scenarios are preferable for YouHodler dual asset investment.
Read more about the best USDC interest rates APY.
YouHodler Dual Asset Profitable Outcomes
We refer to the above example with FIL/USDC for YouHodler dual asset profitable outcomes.
It is always a preferable outcome if the market doesn’t make a big move in ANY direction (more than 0.84% for 24h in the above example).
If you plan to acquire as much USDC as possible over time, your preferred outcome is that the FIL price increases in the 24h period. In addition, if it increases less than 0.84% you can even increase your FIL holdings over time if you plan to have crypto exposure.
If you plan to acquire as many FIL coins as possible over time, your preferred outcome is that the price decreases, but with as little as possible (0.01%). In this case, you will receive FIL coins worth more USDC than if you would have bought FIL instead of signing a dual investment contract from the beginning.
Conclusion: YouHodler dual asset is great if you HODL stablecoins in the bull market or if you plan to acquire cryptocurrencies in the bear market.
How can YouHodler Pay so High interest Rates?
YouHodler dual investment is a crypto options trading product with short settlement times.
You agree to buy a cryptocurrency if it decreases in price, and at the same time, you agree to sell a cryptocurrency if it increases in cost.
If you didn’t receive the APR, also called premium, this contract would be worthless as it would generate a negative return.
However, since the premiums are so high (Up to 365% APR), this trading product can be helpful for traders in developing a HODL/trading strategy.
YouHodler Dual Investment - Our Results
We started on the 19th of Sept with 5000 USDC to try the YouHodler dual asset investment.
Our strategy: Always opt-in for the cryptocurrency pair with the highest outcome.
Our result: On the 23rd, we created the ongoing contract worth 929.23 FIL, or 5110.77 USDT. We will receive this amount the 24th of September.
What APR did we have so far?
In 5 days, we went from 5000 to 5110.77, corresponding to a 2.2% increase and 160.6% APR (during those five days, we have compounded since we have invested the earned interest in every contract. However, to get a 1-year estimation we did just 365/5*2.2=160.6 which does not include the potential compound interest rate for the rest of the year ).
So, if the FIL coin decreases a lot during our last contract, our FIL coins will be worth less than 5110.77. We will update how we perform on a long-term basis.
See the screenshots from all the investments below.
YouHodler Dual Asset Review Summary
- High-interest rates
- Easier to use than Defi
- Complicated to calculate real profits in different scenarios. Make sure to develop a long-term strategy for your cryptocurrency investments.
No Financial Advice, Information only. Do your own research
