In this YIELD App review, I take you through the new lending platform looking to take on the likes of BlockFi, Celsius, and Nexo, by offering an impressive 20% APY. I will provide an overview of the YIELD App, looking at their team, features, and fees, plus a summary and whether I choose to keep my crypto on the platform long term.
Please note, YIELD was released at the beginning of February 2021. New features will continue to be released, as they do, I will try and keep this post as up-to-date as possible.
What is YIELD App?
With YIELD App, you can access the best investment opportunities and invest with as little as $100 without having any financial or technical knowledge, making the world of Defi accessible to anyone.
Simply deposit your cryptocurrency assets such as Bitcoin, Ethereum, and USDT, select the amount you want to invest, and start earning daily rewards. You can redeem your funds at any time, earn a minimum 9.5% APY all the way up to 20% by using their YLD Loyalty and Rewards program.
Essentially, YIELD App aggregates user funds and invests these across a diverse portfolio of DeFi pools.
Who are YIELD App?
The YIELD App platform was launched in February 2021 and built by a team from a diverse range of backgrounds. Their CEO and founder is Tim Frost who has been a key figure with many successful fintech and blockchain companies including Wirex.
Since its launch, YIELD App has gained more than 44 thousand users and grown its platform managed assets to more than $135 million.
They also have a team of advisors and partners which include; BitGo, TrustSwap, Yeoman’s Capital, Pal Capital, and BlockPass.
YIELD App Fees
The YIELD App only charges fees when you withdraw from your account to an external wallet. In this case, there is a fixed charge equal to $20 per transaction.
Otherwise, there are no other fees when using the platform.
YIELD App Supported Tokens
At the time of writing this YIELD App review, users can currently deposit stable coins such as USDC or USDT, Ethereum (ETH), or YLD tokens to start earning interest. Although just be aware that the YLD tokens cannot be invested, they are simply held to earn rewards.
Yield App is also currently working on a FIAT gateway that will allow users to deposit funds via bank transfer and debit cards. Plus a YIELD App card, to simplify withdrawing your funds, in both crypto and fiat.
YIELD App Coin
The YLD token is a utility token that enables users to unlock daily rewards and boosts their returns (or APY). There are a few different ways that you can get hold of the YLD token;
- By investing in the DeFi Alpha I Fund to get YLD rewarded into your wallet.
- Tokens are tradeable on exchanges such as Uniswap, BitMax and Bithumb Global.
- YIELD App has its own “swap” feature that allows users to swap their stable coin assets for YLD tokens.
- A “refer a friend” scheme is coming soon, earning you $40 YLD for every friend who invests at least $100.
YIELD App Bitcoin Fund
The YIELD App launched their Bitcoin fund on 8th July 2021, enabling users to invest their unwrapped Bitcoin and earn up to 12% APY. The subscription is limited and will pay an APY of 6% with up to a further 6% available in YLD rewards, depending on your loyalty tier.
The fund will initially be available to YIELD App Tier 5 users, who are those that hold 20,000 YLD tokens. These users will be able to deposit their Bitcoin from 8th July 2021, up until 7:00 UTC on Sunday 11th July 2021. Tier 5 users will get 6% on their BTC and a further 6% APY in YLD tokens.
After the 11th of July, the fund will be open to all remaining YIELD App users until 12th July or until a cap of 500 Bitcoin is reached. The amount of APY that you will receive will depend on your tier (i.e. the amount that you hold in YLD tokens). With tier 5 you will receive an extra 6% in YLD, 5% for tier 4, 4% for tier, 3% for tier 2, and 2% for tier 1.
There is a minimum of 0.25 BTC and returns in BTC and YLD tokens will begin accruing 12th July 2021, until October 10th, 2021.
BTC withdrawals will be charged at 0.0014 BTC per transaction (which is approximately $50). Any accrued interest will be forfeited for approved early redemptions. Users that have completed know your customer (KYC) to level 1 can withdraw a maximum of 3 BTC, while users that have completed KYC to level 2 can withdraw a maximum amount of 30 BTC
YIELD App Swaps
Within YIELD App you can swap your stablecoin assets for YLD tokens. This handy feature (which can be found under the portfolio tab) was designed to support the YLD loyalty & rewards program. Therefore, you are only able to swap to their YLD token and Bitcoin can now be used to swap. Plus you are also capped to a maximum 24hr limit.
Their swap rate is provided via an API into 3rd party providers. This includes the likes of CoinGecko and is refreshed every 60 seconds.
YLD Loyalty & Reward Program
When you hold the YIELD app token (YLD) in your wallet you can start to earn passive gains on your tokens with an interest of up to 10% APY on your assets.
Plus you can also boost your APY on your investments. By simply holding the YLD tokens in your YIELD App wallet you can boost your APY from 12 to 20%. This is based on a tiered system ranging from 1 to 5 and will depend on the amount of YLD you hold in your wallet. To achieve the maximum APYs on your YLD and your investments you will need to hold over 20,000 YLD in your wallet.
YIELD App Download
At the time of this YIELD App review, the YIELD app is only available via their web application. However, they are due to release a mobile app and will provide enhanced features as the platform grows. This is “coming soon” and will be available to download from Google Play (for Android) or the AppStore (for iOS).
Is YIELD App Regulated?
YIELD App has executed an unconditional Sale & Purchase agreement for the acquisition of ETHpipe OÜ, Co. Registration No. 16099555, an Estonian Limited Liability Corporation. An application for a name change has been submitted for approval.
At the same time, YIELD app is also preparing financial services license applications which include a Cyprus Alternative Investment Fund Manager (AIFM) license, a provision of EU Directive 2011/61/EU AIFMD, and a Reserved Alternative Investment Fund (RAIF) license in Luxembourg subject to the Luxembourg Law of 23 July 2016 (the RAIF Law) and the Luxembourg law of 12 July 2013 on Alternative Investment Fund Managers (AIFM Law).
Is YIELD App Safe?
As well as being regulated, the YIELD app’s cold storage wallets are provided by BitGo. BitGo carries $100 million in insurance protection through a syndicate of underwriters through Lloyd’s.
The $100 million policy covers digital assets where the private keys are held 100% by BitGo. This is the event of:
- 3rd party hacks, copying, or theft of private keys
- Insider theft or dishonest acts by BitGo employees or executives
- Loss of keys
BitGo also provides 100% cold storage technology in bank-grade Class III vaults. Plus the BitGo platform is SOC 2 Type 2 certified.
I don’t want to be too critical of the platform especially as it’s still in its early release. With new features to be added. However, there are a few tweaks that would be great to see (especially for the smaller investor).
One of the benefits of investing in the YIELD app (and earning the yield token) is the token’s potential return. If you look at the likes of Celsius or Nexo, their tokens have done extremely well with the growth of the platforms.
However, it doesn’t make sense for smaller investors to hold the YIELD token to get to the second tier of their loyalty program. At the time of this YIELD App review, you’d need to invest over $4,500 to reach the next tier and earn an extra 2%. Plus over $18,000 to reach the top tier getting you the best return. So really this prices out the smaller investor.
I personally believe it would be more beneficial (and a better incentive) if these rewards were recognised as a percentage fo the user’s holdings. Similar to the likes of Nexo or celsius.
Also having a $20 withdrawal fee again may put off the smaller investor. Although Ethereum gas fees are high, this isn’t something their competitors include.
I personally invest in BlockFi, Celsius, and Nexo as I want to be diversified. But I am happy to add YIELD to that list and keep investing in the platform. Plus if the token can do as well as the CEL or NEXO token, you could get a great return on your investment.