At Donut, we convert your USD to digital dollars (USDC stablecoins) and put those dollars to work, through our partners, in lending markets seeking to provide you a protected base APY of 6% or more.

To power this lending service, we partner with regulated US custodians Wyre, Genesis, and Abra both directly and indirectly, as well as US fintech Synapse. These prime brokers and institutions seek to protect against the risk of partner failure.

Your funds on Donut are protected by overcollateralization. This is typically over 125% of your principal. If the value of the collateral falls, borrowers are margin called and required to top up or repay part of their loan. If not, they are liquidated. This seeks to protect your principal and interest earned in case of borrower default or when crypto prices crash.

In addition, your funds are securely lent to prime brokers and lenders via our wallet partner, Fireblocks, which stores over $400 billion in digital assets.

Donut also uses bank-grade encryption, PIN numbers, and two-factor authentication to protect accounts.

If you have any further questions, don’t hesitate to reach out by e-mail or DM us in-app.

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