As a FinCEN registered organization, we’re committed to doing our part in safeguarding the financial system from illicit use, and being the simplest and safest way to earn with DeFi and web3.
Like ETFs, stocks, or crypto, funds on Donut are not FDIC insured, therefore not zero-risk. Your funds on Save, however, are secured in seven key ways:
Coverage Protection: Our trusted lending partners require that all loans are collateralized by over 125%. This protects your principal and interest earned in case of borrower default. 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 automatically liquidated, which protects your principal.
Diversification: 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. In evaluating partners for Save, we performed due diligence to ensure balance sheet strength for added security.
Custody Protection: Your funds are securely lent to prime brokers and lenders who manage over $10 billion in digital assets via our wallet partner, Fireblocks, which stores over $400 billion in digital assets.
Fully Backed Stablecoins: USDC is fully backed by dollar reserves making it one of the most secure stablecoins out there. Since its inception in 2018, USDC’s issuer Circle has conducted regular audits, published monthly attestations and weekly reserves breakdowns, and is fully regulated by the NY Department of Financial Services. Circle’s last two audits, for 2020 and 2021, have been published as part of Circle’s SEC filings as they prepare to become a listed public company on the New York Stock Exchange.
Data Security: We encrypt user data using the AES-256 standard. The AES-256 is bank-grade encryption and the industry standard for protecting data.
Account Protection: All accounts are protected with a PIN number and two-factor authentication (2FA).
Compliance: Donut is a FinCEN registered organization. FinCEN requires renewal every two years and safeguards the financial system from illicit use.
To learn more about the risks of investing on Save, click here.