12th August 2021 - 3 min read
Less than a week after announcing that it will be launching Decentralised Finance (DeFi) products in Malaysia, MyEG has revealed the beta version of its first DeFi product, MyEG Lock-Earn Wallet, described as “the simplest and safest way to earn on your digital assets holdings.”
The MyEG Lock-Earn Wallet works somewhat like a fixed deposit for cryptocurrencies – or for those who are familiar, the product also resembles Locked Staking or Liquid Swap products that are offered by global Digital Asset Exchanges (DAX).
“Many investors store their digital assets on exchanges in cold storage for long-term safekeeping. However, this strategy doesn’t help them grow their investment holdings or build overall wealth. The MyEG Lock-Earn Wallet enables individuals and institutions to earn borrowing fees on their digital assets held at selected digital asset exchanges (DAX),” explained MyEG on the landing page of the new product.
In other words, the MyEG Lock-Earn Wallet functions by getting you to deposit and lock in a required minimum amount of cryptocurrencies for a specific tenure. From here, you can then earn up to 5% of borrowing fee rates (BFR), starting from a base BFR of 2.5%. Note that this service is currently limited only to two cryptocurrencies: Bitcoin (BTC) and Ethereum (ETH), with the minimum amount to be deposited standing at 0.01 BTC and 1 ETH, respectively.
On top of locking in the required amount of BTC and ETH, there are also extra steps that you can take to increase your BFR to the maximum 5%, including:
Here’s one of the examples provided by MyEG to better illustrate how the MyEG Lock-Earn Wallet can reward you: A user who has locked 1 BTC in their MyEG Lock-Earn wallet, selected a 6-month tenure, referred 8 new users, and traded more than 0.5% in the DAX in the last 30 days will find themselves earning the full 5% BFR. To break things down, the user will be entitled to the 2.5% base rate, another 2% from the eight referrals made (0.25% x 8), and a final 0.5% from the trading of BTC. All accrued borrowing fees will be awarded to the user at the end of his selected lock-earn tenure.
Meanwhile, if the user decides to withdraw his deposited cryptocurrencies before the end of the selected tenure, they will forfeit any or all the BFR earned. Interestingly, there are no mentions of early withdrawal penalties in the product’s T&C for now.
If you’re interested to test out this new service from MyEG, you can go ahead and register your interest for the MyEG Lock-Earn Wallet beta programme. That said, do be aware that you need to be a customer of either MX Exchange or Tokenize Technology to do so; only these two out of the four DAX recognised by Securities Commission Malaysia are currently involved the programme.
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