The on-chain secondary market is already looking rather like a “bear market.” In a year as macroeconomically uncertain as this one, investing, trading, and managing money really aren’t easy 😭.
Anyway, there’s just one principle: when things are unclear, keeping your funds on the sidelines and earning yield is better than losing money through high-frequency trading. The on-chain “Yu’ebao” wallet I’m introducing today, @Top_nod, offers a way to earn yield on idle USDC:
1) First, a quick note: TopNod is a wallet under Ant Digital Technologies. Ant used Alipay to turn Yu’ebao into a household-name cash management tool. TopNod is trying to bring similar logic on-chain, using @Official_Axil APT Vault to create a digital version of “Yu’ebao”;
2) How does it work? APT Vault is primarily for idle USDC. It launched with a cap of $10 million and a target APY of 8%, with separate T+0 and T+7 liquidity plans. This design aims to balance returns with the ability to redeem funds;
3) So don’t hear “Yu’ebao” and “stable APY” and assume that large investors can make risk-free arbitrage profits. T+0 redemptions will definitely have a limit; anything above that will go through T+7. This is really a trade-off between meeting everyday, small-scale liquidity needs and maintaining the stability of the overall pool of funds, helping to avoid a bank run in extreme circumstances. After all, when you’re using the Yu’ebao banner, the most important things are the credit risk of the underlying assets and making the rules clear and transparent from the outset, so users can choose according to their needs;
4) Over the long term, I think the on-chain Yu’ebao TopNod is building and the trading and fund-management features offered by Neobank-style custodial wallets are similar: both aim to make the wallet a gateway for managing idle funds. The need may not feel urgent yet, but once stablecoins and RWAs move on-chain at scale, it’ll become essential. In fact, this is something that simply has to be built. Without stable, secure ways to earn yield, most users can only be ground down in this hellish trading and speculation arena, and there can be no talk of larger-scale inflows of new capital;
That’s it.
As mentioned above, if you’re still watching on-chain opportunities from the sidelines and aren’t sure when to act, you could consider putting some idle funds to work. That way, you can avoid worrying about the value of your USDC holdings shrinking due to exchange-rate changes, while still being ready to act whenever an opportunity comes along. Most importantly, it can help you rein in those out-of-control trading losses 😢. What’s not to like?
Original post (X): https://x.com/tmel0211/status/2120139010979070449
Anyway, there’s just one principle: when things are unclear, keeping your funds on the sidelines and earning yield is better than losing money through high-frequency trading. The on-chain “Yu’ebao” wallet I’m introducing today, @Top_nod, offers a way to earn yield on idle USDC:
1) First, a quick note: TopNod is a wallet under Ant Digital Technologies. Ant used Alipay to turn Yu’ebao into a household-name cash management tool. TopNod is trying to bring similar logic on-chain, using @Official_Axil APT Vault to create a digital version of “Yu’ebao”;
2) How does it work? APT Vault is primarily for idle USDC. It launched with a cap of $10 million and a target APY of 8%, with separate T+0 and T+7 liquidity plans. This design aims to balance returns with the ability to redeem funds;
3) So don’t hear “Yu’ebao” and “stable APY” and assume that large investors can make risk-free arbitrage profits. T+0 redemptions will definitely have a limit; anything above that will go through T+7. This is really a trade-off between meeting everyday, small-scale liquidity needs and maintaining the stability of the overall pool of funds, helping to avoid a bank run in extreme circumstances. After all, when you’re using the Yu’ebao banner, the most important things are the credit risk of the underlying assets and making the rules clear and transparent from the outset, so users can choose according to their needs;
4) Over the long term, I think the on-chain Yu’ebao TopNod is building and the trading and fund-management features offered by Neobank-style custodial wallets are similar: both aim to make the wallet a gateway for managing idle funds. The need may not feel urgent yet, but once stablecoins and RWAs move on-chain at scale, it’ll become essential. In fact, this is something that simply has to be built. Without stable, secure ways to earn yield, most users can only be ground down in this hellish trading and speculation arena, and there can be no talk of larger-scale inflows of new capital;
That’s it.
As mentioned above, if you’re still watching on-chain opportunities from the sidelines and aren’t sure when to act, you could consider putting some idle funds to work. That way, you can avoid worrying about the value of your USDC holdings shrinking due to exchange-rate changes, while still being ready to act whenever an opportunity comes along. Most importantly, it can help you rein in those out-of-control trading losses 😢. What’s not to like?
Original post (X): https://x.com/tmel0211/status/2120139010979070449