2 great ways to generate risk-free passive income: Time-Framing & Futures Liquidity Pools
Interested in making money while you sleep in a decentralized way? How about not having to worry about your assets’ security? If your answer to those questions is “yes”, then you’re definitely in the right place ’cause Chainge Finance offers its users secure & flexible ways to generate some extra cash with no hassle and 0 effort. Below we will explore these 100% risk-free ways of getting significant passive income.
Time Frame (TF) is a revolutionary, unique FUSION innovation unparalleled in traditional or digital finance that can serve as a foundational component of crypto-finance. Chainge is using this new technology (FRC758/759) to express value more accurately and allow you to better control your financial future in a secure decentralised environment.
Time-framing is basically assigning a purpose to a certain amount of wealth for a certain amount of time while having the certainty your assets are always your own. This implies you — as the owner — will still safely possess the given assets’ value (back portion), while the smart contract — as the trusted entity — will have the right to use the front portion for a fixed predetermined period before returning it to you.
In other words, you will still have ownership rights on the back portion of your assets while putting the front portion to work by giving the smart contract usage rights over it.
What happens when you time-frame an asset?
The front portion of your asset will go to the smart contract and your assets will become Time-Framed + you will instantaneously receive your rewards in the form of additional TF-assets (according to the APY you can see in the Earn section in the app) & CHNG rewards (where applicable)
So what can you do with the TF assets you own and the rewards you receive?
The TF assets you will receive + rewards will fulfil most functionalities of a regular asset. You can wait for them to reach the maturity date and automatically become spot, you can exchange them back to spot in the Futures DEX (according to the trading pair exchange rate) whenever you want, send it to someone else or use it to write options.
The main thing to remember here is that as opposed from staking, your assets are not locked in. You can liquidate them at any time in the Futures DEX dependent on the trading ratio (buyers vs sellers)
⚠️ The date at which your TF asset will mature (maturity date) is predetermined and applies to all users regardless of when or what sum they Time-Frame.
⚠️ The conversion from Time-Framed assets to spot assets at the maturity date is automatic and reinforced BY CODE. The front portion of the asset burns out and the user holding the “real asset” regains all spot utilities back.
⚠️ Do NOT send your Time-Framed assets to another wallet (except a Chainge Wallet) or a centralised exchange. Fusion is the only chain that supports Time-Framed assets.
⚠️ Make sure you also check the TF/Spot ratio in the Futures DEX. You might get a better deal than in the earn module depending on the buyer/seller ratio.
How to Time-Frame an asset in the Chainge app?
1. On your main Wealth screen tap Earn
2. You’ll be taken to the Intro Screen which briefly describes TF
3. Click Continue and then click on the Assets Dropdown
4. Select the currency you want to TF
5. Fill in the input field with the exact sum
6. Click Earn & All done! You TF rewards are in your wallet!
Futures Liquidity Pools
Now, since you’ve already gained rewards by time-framing some assets, it’s time to take the next big step and benefit from the outstanding APYs Futures Liquidity pools offer. But first thing’s first:
What are Liquidity Pools?
In Decentralized Finance, liquidity pools are basically pools of tokens locked into a smart contract facilitating efficient asset trading while allowing investors to earn a return on their holdings.
How do liquidity pools work?
Anyone who provides liquidity (asset pairs) in pools is actually adding funds to a smart contract, offering potential users the opportunity to buy and sell.
In exchange for providing liquidity, users will earn APYs derived from the trades that happen in the specific pool.
So now, let’s get to the main topic:
As explained, TF-assets are basically spot assets with a different starting date. This means Futures Liquidity pools are a lot like single token farming; which implies NO impermanent loss since your TF-assets will turn to spot on the maturity date.
Let’s take as an example the following situation: You have 2000 USDT and you want to find the safest and most convenient way of getting some good APY while you do nothing at all, n’or worry about impermanent loss.
Here’s the winner combo:
- Go to the Earn section on your main wealth screen
- Time-Frame half of your USDT (1000 USDT) and get your rewards instantly
- Go to Exchange -> Futures -> Add Liquidity
- Select the USDT/ TF-USDT pair and add your1000 TF-USDT + 1000 USDT
- Go to Exchange -> Pools -> Select the TF-USDT/USDT pool and tap on the gift icon to claim your incoming rewards any time you want.
If things are still not 100% clear we recommend you watch this great walkthrough/tutorial made by Trader Jimie:
⚠️ Please keep in mind that the APY applies to the spot part of the pair as you have already gained the rewards for the Time-Framed part when time-framing
⚠️ Unclaimed TF-CHNG rewards are subject to volatility depending on asset pair ratio fluctuation until they are claimed. Which is why we recommend you claim your rewards on a regular basis.
⚠️ Also, note that while you keep your assets in the Futures Pool you might see some ratio fluctuation (TF assets growing while Spot assets decreasing or vice-versa). So during the year THERE IS impermanent loss. But this is of no importance since on the maturity date they will all be spot thus no impermanent loss will not become permanent. But this applies only if you keep your assets in the pool by the end of the year.
And speaking of which, when the maturity date arrives, all of the assets in the Futures Liquidity Pools will turn to Spot assets and will stop generating APY. You can then take them out of the pools and repeat the process so you can continue earning or use them as you see fit since they will be in your wallet.
To conclude, staking will remain a thing of the past since Chainge offers safer, more flexible, more profitable and overall better alternatives. So, look no further and start earning that passive income while you enjoy life.