25/07/2023
But how does Klink manage to pay out all those prizes? 💸 🏆
To clarify this topic, we want to share the latest Medium article on the mechanics and long-term sustainability of rewards on the Klink platform. The article addresses the inspiration of the model from traditional finance, interest generation, and how we can provide promotional boosts that are above market interest rates. 💡
Drawing inspiration from the proven success of prize-linked savings, exemplified by premium bonds in the UK, we have developed an innovative approach powered by decentralized finance (DeFi). While premium bonds are powered by UK governmental lending rates, Klink leverages DeFi to generate interest and provide rewards to our users. 💰
Breaking it down into three simple steps:
1️⃣ Klink users decide which cryptocurrency they want to hold or buy on the platform.
2️⃣ The Klink platform leverages selected partners in decentralized finance to generate interest on the crypto funds.
3️⃣ The interest generated powers the prizes returned to Klink users.
At Klink, we've categorized yield generation into staking-driven proof-of-stake (PoS) tokens (coming very soon 🚀) and non-PoS tokens, including Stablecoins like USD Coin (USDC), Tether (USDT), and DAI. Our platform generates interest through liquidity provision to selected DeFi protocols, investment into tokenized treasuries, and staking returns. By collaborating with top-tier DeFi projects, we secure the best liquidity opportunities to power the prize draw. We continuously refine our treasury management strategy to provide long-term sustainable rewards and reward crypto “hodling”.
We recognize the importance of transparent operations and will regularly provide insights like this. Read the full article on Medium to dive deeper into the mechanics and vision, and stay tuned for more articles and reports as we evolve and grow! 📚
The full article:
As the co-founder of Klink, I am often asked about the mechanics and sustainability of the rewards we provide to our users. In this…
