Yield/Investment Strategies

How are Dezy strategies created?

Strategies are currently put together by the Dezy team following technical integration and testing of various configurations. Our approach to strategy configurations will evolve over time.

Are the yields fixed?

Yields may vary and fluctuate depending on market conditions. Dezy aims to provide a wide set of strategies that covers various financial products in DeFi. If one sector of the industry is slow or producing low yield, other options may remain more attractive at that time.

How are projected earnings calculated?

We’ve adopted a standardized formula for projected earnings. At 12 am UTC, we record a snapshot of the daily APY for all protocols integrated with Dezy. The APY will be discounted on a daily basis to derive the APR. The APR is then compounded back accordingly based on the projected earnings timestamps (i.e. 1 month, 6 months, and 1 year). All projected earnings are calculated based on the last recorded APY data. To learn more about APR vs APY, you may refer here.

For protocols that practice a cumulative yield (e.g. Uniswap Liquidity Pools), the projected earnings are calculated by aggregating historical performances based on the projected earnings timestamps.

How do I choose which strategy is best for me?

This depends on your risk appetite, the assets you hold, and the goals you have in mind for yourself! Each strategy available via Dezy comes with a breakdown of what it is, how it works, the risk you are exposed to, and the projected returns you may make. We encourage you to read through that information and pick the best strategy for you!

How long should I stay invested to benefit from passive yield and compounding interest?

As a general rule of thumb, it is recommended that investors stay invested for longer periods of time to best benefit from compounding interest. The longer you stay invested, the more time your money has to grow. However, having a well-diversified portfolio and reviewing your investment strategy regularly is also important. Keep in mind your investment goals and risk tolerance when thinking about your investment time horizon.

Unless specifically stated under a particular strategy, there is no minimum deposit period with Dezy. Passive yield however is best achieved via compounding interest and thus the longer you stay invested, the longer compounding interest can work to your benefit. We encourage users to take a longer timeframe towards their yielding and savings goals but unless stated otherwise, there is no minimum lockup period with Dezy.