With the announcement of AuBit’s ownership position in a regulated EU brokerage, you will soon find two distinct types of products on the AuBit Freeway Platform:
These products are similar in that they both grow in volume through revenue rewards.
This is fundamental to AuBit’s mission as a Social Finance referral & rewards platform that shares revenue with users for everyone’s benefit.
It is the combination of these two distinct sets of products, however, that allow us to truly bridge the gap between the world of traditional and digital finance — opening up access to capital markets in more than 180 countries worldwide.
The focus of this article, however, is on the high-APY staking Supercharger products.
— AuBitised Bitcoin Supercharger 33% fixed APY
— AuBitised Ethereum Supercharger 20% fixed APY
— AuBitised Binance Coin Supercharger 20% fixed APY
— AuBitised USD Supercharger 43% fixed APY
— AuBitised Eurosmith Supercharger 43% fixed APY
— AuBitised Gold Supercharger 20% fixed APY
— AuBitised ADA Supercharger 20% fixed APY, and
— AuBitised DOT Supercharger 20% fixed APY
Incredibly popular in the world of cryptocurrencies is the idea of staking.
It remains one of the most frequently asked questions from new members of our community.
Most crypto-savvy people know what staking is, and so have a reference point in their mind that didn’t exist previously with AVHF products which required greater explanation.
AVHF products, with already more than $4m in assets under management, have become high-yield, fixed APY staking products that grow in volume from revenue rewards on every trade.
The simplest example of this is the product buy-in fee.
Every time any user pays a buy-in fee on the AuBit Network, 80% of that fee is shared with product holders as revenue rewards for product volume growth.
For example, every time anyone buys AuBitised gold, AuBit automatically reinvests 80% of fees back into AuBitised gold and shares it with all AuBitised gold holders, so the amount of AuBitised gold in your account grows.
This gives users product volume growth, not just product value growth.
This is only possible thanks to blockchain automation. The blockchain-enabled, automated redistribution of revenues is called ‘AuBitisation’.
On top of that, you then also have the choice to Supercharge them. Think about it…
Where in the world can you find a Bitcoin staking product where you can earn 33% fixed-APY and that is just the baseline staking reward?!
As far as we’re aware, the answer is only on the Freeway platform.
With such high staking rewards, you’re inevitably wondering, “how is that possible?! Can it be real?”
Allow me to explain…
First, it’s helpful to understand how the Supercharger products work in relation to their non-staked counterparts on the Freeway platform.
Alongside Superchargers, we are offering simple non-staked, non-supercharged versions of the same products…
AuBitised Bitcoin, AuBitised Ethereum, AuBitised BNB etc.
These are low-fee tokenised products that come with additional rewards generated from related transaction fees within the AuBit Network creating additional volume for users every time these products trade.
These base products simulate the performance of Bitcoin, Ethereum, and BNB respectively plus incremental growth in volume through AuBit revenue rewards.
For example, AuBitised Bitcoin follows the Bitcoin price but also grows in simulated volume through revenue rewards.
When a user buys these simple products, they will have the chance to supercharge them for a fixed 20–43% APY + AuBitised rewards.
Put simply, upgraded and simplified staking products mean better rewards for you, with known fixed APY expectations as a baseline.
It also means a much easier journey for anyone new to AuBit to understand the products we have available and the different products we have on the horizon — which also means greater adoption and therefore AuBitised revenue rewards.
To fund revenue redistributions and high-APY rewards, AuBit takes inspiration from one of the largest businesses in the world, Berkshire Hathaway, founded by Warren Buffett.
Few people know this, but Berkshire funds many of its investment from what it calls ‘float.’
Float refers to cashflow from their wholly-owned insurance subsidiary: GEICO.
That means that Berkshire uses insurance premiums to fund investments.
Most people only see that AuBit charges modest fees and wonder, “how can you afford to pay such high rewards?”
And in a world of ‘too-good-to-be-true’ promises, such scepticism is understandable, wise even.
What they don’t know, however, is that, Like Berkshire, AuBit too has a little-known but highly-powerful revenue and cash-flow generating sources.
The first of which that AuBit also holds AuBitised products that grow on every trade.
In the future, that will be a major source of income, but today, there’s one that’s much more powerful…
AuBit licenses cutting edge quant trading tech and works with some of the best trading groups in the world to trade its own funds as part of the AuBit Virtual Hedge Fund.
Like the famous D.E Shaw quant trading fund, these strategies can return 40–50% per year.
Some of AuBit’s current licensed strategies have a 5-year track record of such results.
As part of our Social Finance mission, AuBit chooses to reward the majority of that revenue to users, while keeping the rest to fund operations.
It’s a new, win-win model of aligned incentives.
Since much of the AuBit’s revenue comes from the trading of its own funding in quant-trading strategies, it stands to reason that such high-staking rewards can’t possibly be guaranteed forever, right?
Of course, you are right.
There is no long-term guarantee of returns and it would be irresponsible to claim otherwise.
AuBit rewards holders of Supercharger products with daily compounded rewards for as long as the revenues exist from the revenue sources to justify such rewards.
That means that the staking rewards could be lowered at any time, or even removed entirely.
That’s not something we expect to happen, certainly not over the short-to-medium term, but the possibility exists nonetheless.
One or all of the Supercharger products could be subject to changes in staking rewards.
You’ll also be pleased to know that AuBit runs a buffer on its trading with a considerable margin of safety as part of the Virtual Hedge Fund.
That means that one bad day does no harm.
For Supercharger products to be subject to reduced staking rewards or removal, the trading strategies would have to run through AuBit’s buffer and hit three negative threshold levels.
If that were to happen, AuBit would cease trading of one or more of the Supercharger products, and users will be free to move over to alternative Superchargers or cash out to enjoy their handsome fixed-APYs rewards to date.
Beyond the fixed APYs, when you own Supercharged staking products, you’ll also benefit from additional, variable AuBit revenue rewards including referral rewards, product-related revenue rewards, and activity rewards, plus one other type of reward that’s entirely new…