Save is a conservative and secure saving strategy with a fixed base APY of 5% best for savings, college funds, and debt paydown.
On Save, 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%. These funds are lent to a diversified pool of trusted institutional borrowers and protected by overcollateralization.
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. In evaluating partners for Save, we performed due diligence to ensure balance sheet strength for added security.
Save uses the stablecoin USDC as its underlying asset. USDC is fully backed by dollar reserves making it one of the most secure stablecoins out there.
On Save, your funds 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 continue to be 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.
To learn more about how we protect your funds on Save click here.
To further evaluate if Save is the right plan for you, see the risks of Save here.