At Donut, our goal is to provide the easiest and safest earning experience in DeFi and web3. We convert your USD to digital dollars (USDC stablecoins) and put those dollars to work in lending markets seeking to provide you a protected base APY of 5% 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 help protect against the risk of partner failure and introduce an added layer of safety through diversification.

Your funds on Donut are always 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 protects 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, and is a FinCEN registered organization.

We’re striving to make DeFi lending even more simple, accessible, and safe for you. If you have any further questions, don’t hesitate to reach out by e-mail or DM us in-app.

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