Easily earn up to 41% annual percentage yield on your DAI stablecoin cryptocurrency(1 DAI = 1 USD).
We've connected to one of the top protocols in the industry(Compound Protocol), to allow you to earn interest on your DAI and generate Xion Global Tokens(XGT) rewards in return for providing liquidity. All interest earned in DAI is on the Ethereum Mainnet, whereas any XGT rewards earned is on the inexpensive xDAI chain. When you deposit your DAI, you will receive cDAI tokens that represents your deposit + any accrued interest.
Here is an example:
Let’s say you supply 1,000 DAI to Xion.Finance on the Earn page, when the exchange rate is 0.020070; you would receive 49,825.61 cDAI (1,000/0.020070).
A few months later, you decide it’s time to withdraw your DAI from the protocol; the exchange rate is now 0.021591:
Your 49,825.61 cDAI is now equal to 1,075.78 DAI (49,825.61 * 0.021591)
You could withdraw 1,075.78 DAI, which would redeem all 49,825.61 cDAI
Or, you could withdraw a portion, such as your original 1,000 DAI, which would redeem 46,315.59 cDAI (keeping 3,510.01 cDAI in your wallet)
Now that's how you earn interest on your DAI, but as a bonus you will earn XGT rewards every 5 seconds. If you wish to claim your XGT rewards earned over time, simply head to the Withdraw page and select "XGT Rewards" to transfer your XGT into your connected wallet. Your rewards can be claimed at anytime.
In the coming months, we will be connecting to a new lending protocol on the xDAI chain to severely reduce transaction/gas fees to less than $0.001 and process transactions in 5 seconds or less, as compared to the slow and expensive Ethereum Mainnet.