Binance offers users a series of high-yield products with relatively higher risks. Please only invest what you can afford to risk, regardless of how high the potential rates of return are and DYOR before getting started.
Advanced Earn products, including Dual Investment, Smart Arbitrage, and On-Chain Yields, enable you to benefit from your market insights by leveraging different financial strategies. They are tailored for users seeking to maximize their earnings while managing corresponding risk effectively.
Dual Investment is an innovative structured financial product that allows you to earn enhanced returns on your crypto holdings. It combines the potential for earning interest with the flexibility of setting limit orders for cryptocurrencies. Two types of Dual Investment products exist: “Buy Low” and “Sell High”.
Buy Low gives you a chance to buy crypto at the target price on a future date while earning rewards regardless of the market direction. Depending on the average Market Price from 07:30 to 08:00 (UTC) on the Settlement Date, your investment and rewards will be settled in either the deposited cryptocurrency or an alternative cryptocurrency. The same principle applies to Sell High.
Smart Arbitrage is an innovative tool designed for traders to engage in arbitrage strategies between perpetual futures contracts and their spot equivalents. It leverages the funding rate mechanism by hedging their futures position with a spot position to collect the funding fee. Arbitrage involves going long in one market (e.g., spot) and short in the other (e.g., futures) to collect the funding fee.
Binance On-chain Yields allows you to participate in various on-chain protocols easily from your Binance account. You can earn rewards in the form of token or points without having to perform any complex tasks or setups. Binance's On-chain Yields product simplifies the process of on-chain staking for users, which is typically more complex and carries risks.
Dual Investment | Smart Arbitrage | On-chain Yields | |
|---|---|---|---|
Benefit | • High rewards | • Low risk reward | • Earn on-chain rewards |
Source of Yields | This product involves two different assets to capitalize on price movements and generate returns. | This product leverages the funding rate mechanism by hedging its futures position with a spot position to collect the funding fee. | The rewards come directly from rewards provided by the corresponding on-chain protocols. |
Who should use | Users who want to earn higher rewards while holding crypto asset | Users seeking to earn relatively high rewards with reduced risk | Users who want to participate in on-chain protocols and earn rewards |
Principal Protect | No | No | No |
Source: https://www.binance.com/en/support/faq/detail/bc076f0eb7fb4ae182de6c5eb8968dec
