DeFi is Catching up to Wall Street with "High Yielding Returns" on Stocks
Twindex
Main page Analytics, Crypto Market, DeFi
Hot topic
July 12, 2021

Are you looking for a low volatility option in traditional assets while increasing your overall returns? Here's how Twindex allows users to double portfolio returns by integrating traditional financial stocks (equities) on high return yield farming pools in decentralized finance, or DeFi.

Every investors dream is to increase their return while keeping their risk manageable. Over the years, the stock market has been the most common option for most retail investors to increase their portfolio returns. To good measure, top tech stocks such as FAANG (Facebook, Apple, Amazon, Netflix and Google) have offered very mouthwatering returns in the past year. Adjusted for stock splits and dividends, these stocks have outperformed the S&P 500 index in the past decade with a return of 1,814.38% while S&P 500 index returned 230% during the same period.

For instance, Amazon stock, which recorded a lower volatility than the S&P 500 during the pandemic period, shows stability and safety that cannot be understated. However, most of these high line top growth companies rarely offer dividends, which many investors – especially those in Warren Buffet’s camp of investing – believe are key to long term investing success.

A decentralized yield farming prospect

As such, riskier investors are rapidly moving to the crypto space in order to solve problems associated with the traditional financial ecosystem. Decentralized finance, popular as DeFi, provides solutions to this by providing high yield "dividends" via yield farms. DeFi enables everyone to participate in yield reducing overall fees and making returns using little or no cost at all.

DeFi is Catching up to Wall Street with "High Yielding Returns" on Stocks
twindex.com

However, volatility still poses a problem in the crypto field pushing investors away from backing DeFi projects. One DeFi project, Twindex, aims to bring a "dividend structure" to high growth stocks while maintaining the advantages of using decentralized finance via yield farming.

Yield farming entails striving to attain the highest returns by moving between strategies and "yield farming pools".

The company is building a solution to solve the lack of dividends and high volatility dilemma by combining low volatility investments e.g. FAANG stocks with the high "dividend" distribution qualities of yield farms on DeFi products. The yield farm offers several stock options on double asset yield pools allowing users to stake DOLLY, Twindex native token, alongside synthetic assets such as the S&P 500 index, Baidu, Coinbase, Tesla, Amazon, Apple and Google stocks.

DeFi is Catching up to Wall Street with "High Yielding Returns" on Stocks
twindex.com

The platform offers daily rewards of up to 1000% APY across the pools ensuring users receive "dividends" while maintaining the low volatility of equities. With over $15 million in value locked on these synthetic assets, Twindex ranks as one of the top yield farming protocols offering "stability and growth" to yield farmers.

As yield farming continues its exponential growth, more synthetic traditional finance assets are set to be added on Twindex to provide diversification and more yields to users.

Investing is a simple game of maximizing returns while minimizing risk. The integration of decentralized finance products on traditional financial assets opens up a gateway for investors to diversify their portfolios while ensuring they maximize their returns.

This article is distributed for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice.

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