“Do You Know You Can Earn Up 86% APR On USDT During This Bear Market?” At first sight, this got me excited, wanting to find out more. I even calculated what earning 84% from my current portfolio would like.

Not gonna lie, the temptation was real.

But in the back of my head, I was thinking – this can’t be true. Thoughts on how returns are going to be sustainably accrued and skepticism came knocking.

But let’s take a dive into what DeFi Gateway is, and who knows, you might make the biggest degen play or just become a crypto fool.

Also Read: Here’s Why I Flipped Long – But Only For A Short Time

What is DeFi Gateway?

DeFiGa is a platform where you can put your stablecoins to work. They are the first DeFi gateway to hedge funds and various trading companies.

What this means is DeFiGa working with the best financial partners in order to offer profitable passive income on backed stablecoins (USDT).

Unlike other DeFi revenues streams which get value from tokens inflation, Defiga focuses on “creating value through performance. No tokens, no liquidity and no borrower.”

Selection of financial partners

They guiding star in selecting financial partners are based on “their seriousness, their strategies and their performance.”

They also focus on safe assets with attractive volatility such as gold, oil, major crypto currencies and a diversified panel of stocks as well as arbitrages.

Personally, the idea in onboarding financial partners might seem like a good one, because in certain ways, it drives value based on real world assets. But would that amount to the staggering 86% yield? highly unlikely.

I guess I am not totally convinved yet. As of current date of writing, there is no announcement on existing partnerhips as well as what the various strategies they employ would look like.

Roadmap and Whitepaper

Perhaps we could have found a gem, a project in its early phase of development.

They currently have no whitepaper as

and no Roadmap because

They are going against the norm in building the foundation blocks of the project. Do as you will, this is already screaming a major red flag to me.

But we go on to look at its mechanism.

Mechanism of DeFiGa

The basic requirements for yield returns is to lock your funds up for a period of time, minimally 14 months. The lock up period is a necessary step in ensuring returns from the hedge funds DeFiGa will be interacting with.

While it is a necessary step to commit your funds, you may withdraw your yield at any point of time. The team are also in works to create a marketplace, where users are allowed to resell their participation to someone else who wishes to enter.

Interesting feature, but I will stay away.

Staking with DeFiGa

They are also taking a simplistic approach in earning your yield, which can be summarized in 3 points.

Between the staking options provided, you will be able to dedicate your funds into two seperate choices based on the lock up duration.

DeFiGa will not be like LUNA

“Unlike Luna, DeFiGa does not issue stablecoins, we only work with audited and backed 1:1 stablecoins.” While certain portions of this statments may be true, this should not be a convincing factor in encouraging you to deploy your funds.

Some like me, have their doubts, and I echo their sentiments entirely. However, the team put up certain points in rebutting how they are making yields in a different way.

Closing thoughts

Though the concept of tapping into hedge funds and utilizing exisitng financial companies to investments may be appealing, I highly doubt it will be feasible, especially with ZERO credentials (only some twitter threads shilling their product).

Although they have an active marketing and communications team (as seen on twitter and their telegram channels), this projects screams a major red flag. Kudos to their website designer though, a pretty clean and sleek design. Almost got me there.

[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]

Featured Image Credit: Chain Debrief