We are releasing Sweep protocol documentation today. For improved interest pass-through, proof of reserves, and asset protection, stablecoin holders can swap into SWEEP.
Why sweep?
Stablecoin holders will hold approximately $130 billion worth of zero-interest fiat-convertible stablecoins as of December 2022. By investing in money markets at a rate of 4.5 percent, stablecoin sellers are able to collect a larger and larger spread from these customers.
By shifting unused funds from low-interest checking accounts to higher-interest savings accounts, a conventional “sweep account” at a bank will reduce this cost. Similar to Maxos, holders of stablecoins can “sweep” their holdings into assets that pay interest
Through an increase in the SWEEP coin’s value, Sweep pays interest. In order to strike a balance between the supply of investments and the demand for savings, the interest rate is adjusted once per week. In most market conditions, SWEEP is designed to pay a rate that is competitive.
Obtaining SWEEP
On participating blockchains, savers can purchase and sell SWEEP from an AMM. USDC, USDT, and BUSD are examples of stablecoins that can be exchanged for fiat currency.
Software-based wallets, apps, and protocols make up the customer base for a product like SWEEP. Without games or gates, Maxos will provide these users with a straightforward AMM channel and value accumulation. There is no front end on Sweep.
Asset allocation
Sweep is intended to offer a risk-free interest rate and quick redemption at the anticipated price. Sweep allocates to safe money market securities in order to accomplish these objectives.
As relative rates fluctuate, Sweep can shift allocations from CeFi to DeFi.
Through fully collateralized loans, Maxos has developed innovative tools for placing money with skilled managers.
Compare Sweep to stablecoins
That are backed by fiat Savers compare Sweep to a typical stablecoin that is backed by fiat in a few important ways: Interest pass-through Sweep goes through a rate of interest that is competitive.
Evidence of reserves: The superpower of DeFi is transparency. Sweep will provide daily reports on all collateral it holds on behalf of borrowers and custodians.
Security of assets: Sweep receives a non-commingled collateral pledge of off-chain assets from dependable securities custodians.
monetary buffer: Savers are shielded from market missteps and losses by capital. Capital buffers for Circle, Tether, and Paxos range from 0.3 percent to 1.7 percent. Sweep acquires additional capital from a network of margin borrowers that is decentralized.
Liquidity: Sweep is designed to satisfy all redemption requirements within a week. If a lot of people want their money back the same day, sweep can sell at a discount.
AUTHOR DETAILS:
| dk.sehrawat2007@gmail.com | |
| First Name | Deepak |
| Middle Name | – |
| Last Name | Kumar |
| Phone | 9891972035 |
| Street | RZA-16 B, Dwarka, Puri, Vijay Enclave |
| City | Delhi |
| Country | India |
| Occupation | private job |
| Material | married |
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| Birthdate | 14dec1983 |
| Nationality | india |
| Children | yes |
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