Stake BAMBOO Tokens to Get Passive Income

Use your BambooDeFi cryptocurrency to earn Competitive Returns. Forget about KYC, minimum amounts, and penalties for early repayments.

Bet you have never stake crypto in the way described below. So, forget about Ponzi schemes of staking that other projects usually utilize. The BambooDeFi team does not want to inflate BAMBOO tokens. They will not be gifting extra coins to people who hold. That’s why when you stake BAMBOO tokens on Tokpie, you earn interest paid by other users for borrowing. You can call it peer-to-peer staking.

How to stake Bamboo tokens?

The staking of BAMBOO tokens is the same as giving (lending) your coins to other users. In the below example, Bob wants to stake 100 Bamboo tokens to get maximum return. So, follow five steps to know how to earn passive income in BambooDeFi cryptocurrency.

Step 1. Log in to Tokpie exchange

Bob signs up or logs in to Tokpie.

Step 2. Deposit Bamboo tokens

Bob tops up his account with 100 Bamboo tokens.

Deposit Bamboo tokens
Deposit Bamboo tokens

Alternatively, Bob can buy Bamboo tokens for crypto or with a bank card

Step 3. Select the best APR 

Bob opens the lending and borrowing section to define the best real-time Annual Percentage Rate (APR) for the BAMBOO tokens. Then, he clicks on the related line (as on the screenshot below) with the highest APR of 15.09%.

Find the best APR
Select the highest APR

Step 4. Stake Bamboo. Obtain promissory notes

After step 3, Bob appears on the market page. He presses the BUY button and enters the quantity. To make the deal instantly, Bob clicks on the ‘Fill price from the market’. Then, press the Submit button.

Obtain Bamboo promissory notes
Get Bamboo promissory notes

Consequently, 104.71 promissory notes appear on Bob’s balance.

Promissory notes appear in the balance
Promissory notes appear on the Balance page

TIP:

Alternatively, Bob can bargain on price and try to buy BAMBOO’s promissory notes at a lower price. Therefore, the resulting APR and profit will be higher: 20.44%. 

Bargain on price
Bargain on price in the order book to get a higher profit

After pressing the Submit Order button, Bob’s bid becomes visible on the order book for all counterparties.

BID in the order book
Wait for the execution of your BID

Step 5. Get income

In the above example, Bob purchased Promissory Notes with the June 15, 2021 maturity date. Let’s imagine that now is June 16, 2021. Bob opens his balance page and sees that Promissory notes’ balance becomes zero. At the same time, his BAMBOO tokens balance becomes 104.71 tokens.

Promissory notes executed
Wait for the execution of the Promissory note (Maturity date)

Remember that Bob spent 100 tokens on buying 104.71 promissory notes. Therefore Bob has got 4.71 income (104.71-100) for 114 days. So, that is precisely the 15% APR that he expected to get in the beginning. Now Bob can withdraw, sell or repeat BAMBOO’s tokens staking again.

Yes, that’s so simple.

Video explanation of all the above steps will be available soon. 

What is Bamboo Promissory Note?

The Bamboo Promissory Note is a digital asset that confirms the issuer’s promise to pay 1 (one) BambooDeFi token to Tokpie at the specified maturity date. Tokpie, in turn, guarantees to pay 1 (one) BambooDeFi token to any holder of one Promissory Note at the maturity date.

Any user can issue Bamboo promissory notes and sell them to get a loan. Moreover, anyone can buy Bamboo promissory notes to stake (lend) BambooDeFi tokens and earn returns. Because of internal circulation, users can not withdraw Promissory Notes from the Tokpie exchange. Also, find the list of all promissory notes here.

What is the minimum staking amount?

The minimum amount of the BambooDeFi tokens that you need to have to start staking is one token. 

How can I get a repayment at any time?

To get a repayment at any time, simply sell the promissory notes that you have on your balance. Moreover, You can sell them at any price. For example, you can bargain on price and sell promissory notes with a profit. Sometimes, that profit can be even higher than an income you could get by waiting for the maturity day.

What are the Annual Percentage Rates?

To know the Annual Percentage Rates for the Bamboo, regularly check the Lend APRs of Bamboo promissory notes. As a result, you can catch the best APR. The higher the APR, the more passive income you could get.

The lenders and borrowers are constantly bargaining on Bamboo promissory notes’ prices. Therefore, only users define the fair-market annual interest rates (APRs).

The formula of APR (Annual Percentage Rate):

(1-price) / price / number of days until the promissory note maturity date x 365 x 100%.

What are the strategies I can use to maximize returns?

There are many ways to maximize returns by buying and selling BAMBOO’s promissory notes. Here are the four more popular strategies

  • Buy BAMBOO’s promissory notes when lending APRs are high.
  • Purchase BAMBOO’s promissory notes when the BambooDeFi token’s price starts to grow on the spot markets.
  • Buy long-term BAMBOO’s promissory notes when the BambooDeFi token’s price is on the spot markets’ historical bottom.
  • Sell BAMBOO’s promissory notes when the BambooDeFi token’s price is too high (over-bought) on the spot markets.

So, stop idly keeping BambooDeFi coins. Let your BAMBOO tokens do the work. Earn passive income at competitive and fair-market rates. There are no KYC, no minimums, and no lock-ups. Start collecting profit in your pocket. Earn the income that you deserve.

Useful links

For any questions or cooperation, you can contact Tokpie at https://t.me/tokpie.

How to Get Cash Without Cashing Out BAMBOO tokens?

Learn how to borrow extra Bamboo tokens at fair-market rates by using your existing BambooDeFi coins as collateral.

How to get the money today without cashing out your BAMBOO tokens? It’s simple. Borrow BAMBOO against your existing tokens at fair-market rates. You don’t have to pass KYC. Also, you will not face minimum amounts and penalties for early repayment.  

How to Get Money Without Cashing Out BAMBOO

In the below example, Bob wants to get 137 USDT by using Bamboo tokens as collateral. So, let’s see how to earn money without losing BAMBOO tokens.

Step 1. Sign in to Tokpie exchange

Bob signs up or logs in to Tokpie.

Step 2. Deposit Bamboo tokens

Bob deposits 150 Bamboo tokens. For simplicity, let’s imagine that the Bamboo token price is $1.37. 

Deposit Bamboo tokens
Deposit Bamboo tokens

Step 3. Issue Bamboo Promissory Notes

Bob opens the Borrow section and selects a Promissory note title. For example, [BAMBOO_PN_15_Jun_2021]. It means a BAMBOO token Promissory Note with June 15, 2021 maturity date. Look at the screenshot below.

Then he enters how many notes to issue. Let’s it be 100 notes. A one BAMBOO promissory note is a digital asset that gives its holder a right to get 1 BAMBOO token in the future (the future is a maturity date).

Then, he selects BAMBOO tokens as collateral cryptocurrency. 

To complete the Promissory notes issuance, Bob clicks on the ‘Collateralized & Deposit’ green button. Note: Bob doesn’t get a loan when issuing Promissory Notes. It’s because he is the holder of these Promissory Notes.

how to issue Bamboo promissory notes
Issuing (depositing) Bamboo promissory notes

After that, the BAMBOO Promissory Notes appear on his balance page. So, now Bob can sell promissory notes to get a loan

Step 4. Sell Bamboo Promissory Notes

To sell promissory notes, Bob selects BAMBOO Promissory notes by clicking on the related line here. Then he presses on the SELL button, enters quantity, price, and clicks on the SUBMIT ORDER button as shown below.

sell promissory notes
Selling Bamboo Promissory Notes

What is collateral, and how to calculate it?

A Collateral is an asset used to guaranty the repayment of Promissory Notes on the maturity date. Currently, you can use only BAMBOO tokens as collateral assets for issuing BAMBOO’s Promissory notes.

The platform calculates collateral amount automatically due to the formula:

(Quantity x Price / LTV) x 100, where

Price is a US dollar equivalent of the current highest BID of the promissory note.

Quantity is the number of promissory notes that are going to be issued.

LTV is a Loan-to-Value ratio that starts from 70% to 90%. It depends on the subscription plan.

How Can I increase Loan-to-Value (LTV)?

Tokpie users have Trial status with a 70% LTV by default. To get a higher LTV, a user can upgrade his subscription plan from Trial to the Light, Standard, Premium, or Enterprise status. Please review the plans here.

How Can I settle promissory notes before the maturity date?

Go to the Borrow section and click on the related line’s settle button (screenshot below). As a result, the exchange unlocks collateral in a few seconds.

Moreover, a user doesn’t pay any penalty for the settlement made before the maturity date (early repayment).

What if I didn’t settle Promissory Notes before the maturity date?

The exchange settles promissory notes that you didn’t pay before the maturity date automatically. For example, if you issued 100 [BAMBOO_PN_15_Jun_2021] notes, the system will take 100 BAMBOO from your collateral amount and release the rest back to your account.

What is the formula for Annual Percentage Rate (APR)?

The Annual Percentage Rate (APR) is the annual rate representing the ‘cost’ of borrowing. The formula is (1-price) / price/number of days until the promissory note maturity date x 365 x 100%.

Borrow APR is a percentage that shows the potential cost of the loan here. It’s called potential because a borrower can settle promissory notes at any time before maturity.

Bamboo_borrow_apr
Annual percentage rates for Bamboo tokens borrowing

Shall I pay fees for BAMBOO tokens borrowing?

Yes, users pay small trading fees (0.02%-0.1%) when selling and buying promissory notes. The fee’s size depends on a user’s subscription plan.

Is it profitable to borrow BAMBOO coins?

The borrowing strategies could be very profitable. They allow users to earn profit and hedge the risks of the BAMBOO token price dump. For example, you can do the following:

  • Get a BAMBOO loan when the borrow APR is low.
  • Borrow BAMBOO tokens and sell them if you urgently need money.
  • Sell BAMBOO promissory notes (borrow) if the BAMBOO price is going down.
  • When BAMBOO overbought (price is too high), it might be better to borrow tokens instead of purchasing them directly in the spot market.

Bottom line

If you strongly believe in the BambooDeFi, but urgently need money, don’t sell your BAMBOO. Instead, borrow extra BAMBOO tokens against by using your existing BAMBOOass collateral. Therefore you will get a loan at fair-market rates — no need to pass KYC. Also, there are no minimums. Moreover, you can repay a loan at any time without penalties.

Useful links

For any questions or cooperation offers, please contact Tokpie at https://t.me/tokpie.

Get Money Without Cashing Out yOUcash: Borrow YOUC

Learn how to borrow additional YOUC against your existing YOUC at fair-market rates.

Is it possible to get the cash you need today without cashing out your YOUC tokens? Yes! Borrow YOUC against YOUC at fair-market rates. There is no KYC and no minimum amounts. So, If you urgently need money but don’t want to sell your YOUC tokens, read this guide.

How to Get Money Without Cashing Out YOUC tokens?

To get money without losing YOUC tokens, follow these steps:

  1. Sign up or log in to Tokpie exchange.
  2. Make sure that you have YOUC tokens for collateral on your Tokpie account balance.
  3. If you don’t have any YOUC, deposit them from outside. 
  4. Open the Borrow section and select a Promissory note title. For example, YOUC_PN_15_Mar_2021 means a YOUC token Promissory Note with Mar 15, 2021 maturity date. Look at the screenshot below.
  5. Enter how many YOUC Promissory Notes you want to issue. The issue of 1 promissory note is like creating a new digital asset that gives its holder a right to get 1 YOUC token in the future (future is a maturity date, e.g., Mar 15, 2021)
    Note: You don’t make any loans when issuing Promissory Notes. It’s because you’re the holder of these Promissory Notes.
  6. After that, select collateral cryptocurrency. You can choose only YOUC at that moment. You can see the required collateral amount in the grey fields and how much of them available on your balance.
  7. To complete the Promissory notes issuance, check a box and press ‘Collateralized & Deposit’ green button.
  8. If you have enough collateral amount, YOUC Promissory Notes appear on your balance page. So, now you can sell them to get a loan. You can trade promissory notes all at once or partially as any other crypto asset for competitive prices.

TIP: After a successful Promissory notes issuance, you also see them on your balance and Collateralized Assets table.

issue YOUC promissory notes
Issue YOUC promissory notes

How can I sell YOUC promissory notes?

After a successful Promissory Notes issuance, you can sell them to get a loan. You can do it at any time. Just select YOUC Promissory notes that you want to sell by clicking on the related market here.

The selling of YOUC promissory notes is the same process as selling any other cryptocurrencies.
To sell YOUC Promissory Notes click on [SELL], enter quantity, price, and press the [SUBMIT ORDER] button as shown below.

selling youc promissory notes
After promissory notes issuance, Sell them to get a loan

What is collateral?

Collateral is an asset used to guaranty the repayment of Promissory Notes on the maturity date. Currently, you can use only YOUC tokens as collateral assets for issuing YOUC Promissory Notes.

What is the collateral amount?

A user sees the required amount of collateral before promissory notes issuance. The platform calculates it automatically due to the formula:

(Quantity x Price / LTV) x 100, where

Price is a USD equivalent of the current highest BID of the promissory note that will be issued.

Quantity is the number of promissory notes which are going to be issued.

LTV is a Loan-to-Value ratio. LTV ratio varies from 70% to 90%, depending on a user’s subscription plan.

How to increase LTV (Loan-to-Value) ratio?

All Tokpie users get Trial status with a 70% LTV ratio when register. To increase the LTV ratio up to 90%, a user shall upgrade his subscription plan from Trial to the Light, Standard, Premium, or Enterprise plan. It will require a specified amount of TKP tokens locked on a user’s Tokpie account. Check all Plans and their advantages here.

How to settle promissory notes before the maturity date?

Open the Borrow section, and click on the settle button in the related line (screenshot below). As a result, the system unlocks collateral in a few seconds.

Moreover, you do not pay any penalty or fees for the settlement made before the maturity date.

Important: To settle, you must have the same Promissory Notes available on your account balance.

settle promissory notes
Settle Promissory Notes at any time

What if I don’t settle Promissory Notes before maturity date?

The system automatically settles promissory notes that you didn’t settle before the maturity date. The system uses your collateral (locked YOUC) to make auto-settlement. For example, if you had been an issuer of 100 [YOUC_PN_15_Mar_2021], the system will use 100 YOUC from your collateral amount and release the rest collateral back to you.

What is the Annual Percentage Rate?

APR (Annual Percentage Rate) is the annual rate showing the ‘cost’ of borrowing or ‘profit’ earned through lending. The APR formula is

(1-price) / price / number of days until the promissory note maturity date x 365 x 100%.

Borrow APR is a percentage that represents the potential yearly cost of crypto funds if a borrower repays a promissory note on its maturity date. It’s called potential cost because a borrower can settle a promissory note at any time before maturity.

Example: When a borrower receives 0.9 YOUC on Dec 15, 2021, by selling one Promissory Note that matures on Mar 15, 2021, he will have to repay 1 YOUC in 90 days. The cost of that loan is 0.1 YOUC (1-0.9) for 90 days.
In that case APR = 0.1 / 0.9 / 90 x 365 x 100% = 45.06%

Shall I pay fees for YOUC tokens borrowing?

Yes, you pay small trading fees (0.02-0.1%) when selling and buying promissory notes. The size of the fee depends on your subscription plan.

When is it profitable to borrow YOUC tokens?

Due to the constant market fluctuations borrowing strategies could allow you to earn profit and hedge the risks of the YOUC token price dump. For example, you can do the following:

  • Get a YOUC loan when the borrow APR is low.
  • Borrow YOUC tokens and sell them if you urgently need money.
  • Sell YOUC promissory notes (borrow) if the YOUC price is going down.
  • When YOUC overbought (price is too high), it’s better to borrow tokens instead of purchasing them directly in the spot market.

If you have YOUC tokens and believe in the YOUengine project’s bright perspective but urgently needs cash, don’t sell your YOUC. Instead, borrow additional YOUC against your existing YOUC at fair-market rates to get money. There is no KYC and no minimum amounts. Moreover, you can repay a loan without penalties at any time.

Useful links

For any questions or cooperation, you can contact Tokpie at https://t.me/tokpie.

Stake YOUC Tokens to Get Passive Income

Stake YOUC tokens at fair-market rates, enjoy early repayments without penalties. No KYC and credit checks.

Stake YOUC tokens at fair-market rates. Enjoy early repayments without penalties, KYC, and credit checks. Let your YOUcash (YOUC) tokens do the work! Read this guide to know how to stake YOUC tokens. Alternatively, you can watch a 4-minutes video.

Short video guide on how to stake YOUC and make a profit in two ways.

How can I stake YOUC tokens?

To stake YOUC tokens and earn competitive returns, you need to become a holder of YOUC promissory notes as described below:

  1. Sign up or log in to Tokpie exchange.
  2. Make sure that you have YOUC tokens on your Tokpie account. If you don’t have them, deposit YOUC tokens from outside or buy them on Tokpie markets: YOUC/ETHYOUC/USDCYOUC/WBTC.  
  3. Select YOUC Promissory notes that you want to get by clicking on the related market here. Note that promissory notes have different Maturity Dates and APRs (Annual Percentage Rates).
  4. After you open YOUC promissory note’s market, click on [BUY], enter quantity, price, and press the [SUBMIT ORDER] button (look at the image below). Note that you can buy and sell promissory notes as any other crypto asset.
YOUC promissory notes
Stake YOUC by buying YOUC promissory notes

Can I see YOUC token staking example?

Yes, you can see an example (on the screenshot above) of how to stake YOUC tokens by buying its Promissory Notes.

When you buy 3,000 [YOUC_PN_15_MAR_2021] notes at a price of 0.981 YOUC, it means you lend 2,943 YOUC until MAR 15, 2021. As the result, you will get 3,000 YOUC on MAR 15, 2021. The profit will be 57 YOUC (3,000-2,943).

Moreover, you don’t have to wait for MAR 15, 2021, to get 57 YOUC profit. Alternatively, you can sell YOUC promissory notes at any time before the maturity date!

For example, the price of [YOUC_PN_15_MAR_2021] notes grows up from 0.981 to 0.99 YOUC in 5 days after you purchased them. Therefore, you could sell 3,000 notes for 2970 YOUC. The profit will be 27 YOUC (2970-2943) for five days. That would be an equivalent of 66.97% APR (27/2943/5*365*100%).

A short video example.

What is YOUC Promissory Note?

The YOUC Promissory Note is a digital title that confirms the issuer’s promise to pay 1 (one) YOUC to Tokpie at the specified maturity date. Tokpie, in turn, guarantees to pay 1 (one) YOUC to any holder of one Promissory Note at the maturity date.

Any user can issue YOUC promissory notes and sell them to get a loan. Moreover, anyone can buy YOUC promissory notes to stake (lend) YOUC and earn returns. Because of internal circulation, users can not withdraw Promissory Notes from the Tokpie exchange.

How to get repayment at any time?

To get back YOUC tokens (get a repayment) contributed to the purchasing of promissory notes, sell your promissory notes. You can do it at any time. Just select YOUC Promissory notes that you want to sell by clicking on the related market here.

The selling of YOUC promissory notes is the same process as selling any other cryptocurrencies.

What is the minimum staking amount?

The minimum amount of YOUC tokens that you need to start staking is 1 YOUC. It means that you can use just one YOUC to purchase YOUC promissory notes and start earning passive income.

What is the Annual Percentage Rates for YOUC token staking?

To know the Annual Percentage Rates for the YOUC token, regularly check the Lend APRs for YOUC promissory notes. It helps you to catch the best potential income. It’s called potential because you can sell promissory notes with a profit at any time before the maturity date.

YOUC token lenders and borrowers negotiate interest rates through bargaining on promissory notes prices. As a result, peers are always defining a fair-market APR.

APR (Annual Percentage Rate) is the annualized rate showing the ‘cost’ of borrowing or ‘profit’ earned through lending. The APR formula is:

(1-price) / price / number of days until the promissory note maturity date x 365 x 100%

Shall I pay any fees for YOUC staking?

Yes, you pay small trading fees (0.02-0.1%) when selling and buying promissory notes. The size of the fee depends on your subscription plan.

What passive income strategies can I use?

There are many profitable strategies that you can realize by staking YOUC tokens. Find some possible methods below.

  • Purchase YOUC promissory notes when lending APRs are high.
  • Buy YOUC promissory notes when YOUC token price is going to grow on the spot market.
  • Purchase long-term YOUC promissory notes when YOUC token price is low on the spot market.
  • Regularly buy YOUC promissory notes if you have YOUC tokens’ surplus.

So, what are you waiting for? HODL YOUC and let your tokens do the work! Earn passive income at fair-market rates. There are no KYC, no minimums, and no lock-ups. Start collecting profit in your pocket. Earn the passive income you deserve.

Useful links

For any questions or cooperation, you can contact Tokpie at https://t.me/tokpie.

The Ultimate Guide to TKP Token Staking (Lending) and Borrowing

Lend and borrow TKP token at fair-market rates, enjoy early repayments without penalties. No KYC and credit checks. Lend and take returns at any time, no minimum deposit, no lockups. Welcome to the new era of cryptocurrency lending based on promissory notes trading!

P2P lending on Tokpie. The new way of token staking.

P2P cryptocurrency lending on Tokpie exchange built on promissory notes trading. Applying to TKP token lending, a borrower issues a TKP promissory note pledged by collateral and sells it on the free market to get a crypto loan. On the other side, a lender buys the promissory notes at a discounted price to get a full principal amount of TKP later and make a profit. In addition, peers can use many other profitable strategies and tactics. Welcome to the new era of token staking!

TKP lending vs token staking

Being based on Promissory notes trading, TKP lending is like token staking but better. Although token staking rewards might be more predictable, TKP lenders can set any interest rates, receive profits and take funds back at any moment. All other benefits are described in the next section.

Advantages

Peer-to-peer TKP token lending built on promissory notes trading, provides lenders and borrowers with the following unique advantages:

Fair-market interest rates

TKP lenders and borrowers negotiate interest rates through bargaining on promissory notes prices. As a result, peers are always defining fair-market interest rates.

Cancelation at any time without penalties

A lender can cancel a deal at any moment by selling promissory notes that he has previously bought. Besides, a borrower can cancel (settle) his loan at any moment without penalty by buying back a promissory note initially issued and traded.

No minimal deposits and lockups

TKP token staking through lending and borrowing is possible starting from just 1 TKP token. Moreover, there is no need to lockup funds. If a lender urgently needs the money he can just sell promissory notes.

No KYC and credit checks

Tokpie exchange’s users don’t have to pass through the KYC procedure for making crypto withdrawals below $2,500.00/day threshold. Also, borrowers don’t have to prove their incomes and credibility.

10+ profitable strategies

There are 10+ profitable strategies for p2p crypto lending based on promissory notes trading.

What is TKP?

The TOKPIE (TKP) is an ERC20 token of Tokpie exchange. Token total issuance is 100,000,000 TKP. The utility value and benefits of having TKP tokens are the following: 

  • 500% trade fees discount
  • Almost 200% discount on withdrawal commissions
  • Receiving airdrops in altcoins of all listed projects every week
  • Up to 70% referral bonus
  • Accepted as means of payment on Tokpie IEO Launchpad
  • Used as collateral for bounty stakes depositing
  • Accepted for P2P lending and borrowing ?
  • Ability to increase LTV (loan-to-value) ratio up to 90% for P2P borrowing. ?

What is a Promissory Note?

Applying to TKP token, a one TKP Promissory Note is a digital title that confirms the issuer’s promise to pay 1 (one) TKP to Tokpie at the specified maturity date. Tokpie, in turn, will guaranty to pay 1 (one) TKP to any holder of one Promissory Note at the specified maturity date.

A user can issue and sell (to get a loan), buy (to lend), settle before the maturity date or hold until repayment TKP promissory notes. Because of internal circulation, users can not withdraw Promissory Notes from the Tokpie exchange.

How to lend TKP tokens?

To lend TKP tokens and earn competitive returns you need to become a holder of TKP promissory notes. In other words, TKP token lending is the same as purchasing TKP promissory notes as described below:

  1. Sign up or log in Tokpie exchange.
  2. Make sure that you have TKP tokens on your Tokpie account balance. If you don’t have TKP tokens you can deposit them from outside or buy on Tokpie TKP/ETH and TKP/USDC markets.   
  3. Open any of four TKP Promissory notes markets which have different maturity dates:
    TKP_PN_15_Dec_2020 (Maturity date: 15-DEC-2020)
    TKP_PN_15_Mar_2021 (Maturity date: 15-MAR-2021)
    TKP_PN_15_Jun_2021 (Maturity date: 15-JUN-2021)
    TKP_PN_15_Sep_2021 (Maturity date: 15-SEP-2021)

    Maturity refers to the date when a Promissory note principal amount is repaid. For example, a TKP_PN_15_Mar_2020 note will mature on March 15, 2020; the holder will receive the principal amount on that date
  4. After that, click on [BUY], enter quantity, price, and press [SUBMIT ORDER] button.
Lending TKP token by buying TKP Promissory note on Tokpie exchange
Lend TKP by buying promissory notes

Example

To make a profit a lender needs to purchase TKP Promissory Notes from other users at a discounted price. As shown in the figure above, a lender is going to purchase 100 Promissory notes at a price of 0.95 TKP per note. The cost of the deal will be 95 TKP (100 x 0.95).

Therefore, the lender will get 100 TKP (1 TKP principle amount x 100 notes) on March 15, 2020, maturity date. The profit will be 5 TKP (100-95); that equals 20.44% APR (Annual interest rate) if the lender holds the promissory notes until March 15, 2020.

In addition, if promissory notes’ prices go up, a lender could sell them in seconds at any time before the maturity date and also make a profit!

TIP: Lenders can set any BID price and bargain in the Order Book trying to purchase at a lower price. It will increase the so-called token staking reward. In other words, the lower purchase price the higher profit a lender will get! 

Profit explanation: A lender’s income is calculated as (1- price) x quantity of Promissory notes bought. So, the lower a purchase (matched) price the higher income will be earned.
Lend APR explanation: Annual Interest Rate is calculated as
(1-price) / price / number of days until the promissory note maturity date x 365 x 100%.
Therefore, to maximize returns, the lender should try to purchase a Promissory note with the earliest maturity date and at the lowest price.

How to borrow TKP tokens?

To get a loan in TKP tokens you need to issue and sell TKP promissory notes as described below.

How to Issue TKP promissory notes?

To issue TKP promissory notes perform the following steps:

Borrow TKP by issuing TKP Promissory notes on Tokpie exchange
Issue promissory notes
  1. Sign up or log in Tokpie exchange.
  2. Make sure that you have funds (ETH, USDC or TKP tokens) for collateral on your Tokpie account balance. If you don’t have any of collateral cryptocurrencies, deposit them from outside.
  3. Open Borrow section
  4. Select a Promissory Note title.
    For example, a title TKP_PN_15_Mar_2020 means a TKP token Promissory Note with March 15, 2020 maturity date.
  5. Enter how many Promissory Notes you want to issue.
    The issue of 1 promissory note is like a creation of a new digital asset that gives its holder a right to get 1 TKP token in the future (future is maturity date e.g. on March 15, 2020).
    NOTE: You don’t make any loan when issuing promissory notes. Because only you’re the holder of promissory notes which have been just issued.
  6. After that, select collateral cryptocurrency.
    You can choose ETH, USDC, or TKP tokens. In the next grey colored fields, you could see the required collateral amount and how much of them available on your balance.
  7. To complete the Promissory notes issue, check a box and press ‘Collateralize & Deposit’ green button.
  8. If you have enough collateral amount, TKP Promissory Notes appear on your Tokpie account and you can sell them to get a loan. You can trade promissory notes all at once or partially as any other crypto asset for competitive prices.
To lend TKP, click on hammer icon to open Promissory note order book and sell them
Click on hummer icon to trade promissory notes which have been just issued

TIP: After a successful Promissory notes issuance you also see them in your Collateralized Assets table, click on the hummer icon (as shown in the picture above) to open the related order book and sell.

What is a collateral cryptocurrency?

A collateral cryptocurrency is an asset that can be used as “collateral” for promissory note issuance. Currently, Ethereum (ETH), USDC, and TKP can be used as collateral currency when issuing TKP promissory notes.

What is the collateral amount?

A user sees the required amount of collateral cryptocurrency before promissory notes issuance. The platform calculates it automatically due to the formula: (Quantity x Price / LTV) x 100, where
Price is a USD equivalent of the current highest BID of the promissory note that is going to be issued.
Quantity is the number of promissory notes which are going to be issued
LTV is a Loan-to-Value ratio. LTV ratio varies from 70% to 90% depending on a user’s subscription plan.

How to increase LTV (Loan-to-Value) ratio?

All Tokpie users get Trial status with a 70% LTV ratio when register. To increase LTV ratio up to 90% a user shall upgrade his subscription plan from Trial to the Light, Standard, Premium or Enterprise plan. It will require a specified amount of TKP tokens to be locked on a user’s Tokpie account balance. Check all plans and their advantages here.

How to settle promissory notes before the maturity date?

Open the Borrow section, and click on the settle button in the related line as shown in the picture below. The result, the system unlocks collateral in a few seconds.
Moreover, you do not pay any penalty or fees for the settlement made before the maturity date.
Important: To settle, you must have the same amount of the same Promissory Note title available on your account balance.

A TKP loan can be settled at any time by clicking on 'settle' button on Tokpie exchange
Settle to Unlock collateral before the maturity date.

How to sell TKP promissory notes?

After a successful Promissory notes issuance, you can sell them to get a loan as explained below.

  1. Open a related order book.
    Every Promissory note has one related Order Book (market) where peers can trade it until maturity date:
    TKP_PN_15_Dec_2020 (Maturity date: 15-DEC-2020)
    TKP_PN_15_Mar_2021 (Maturity date: 15-MAR-2021)
    TKP_PN_15_Jun_2021 (Maturity date: 15-JUN-2021)
    TKP_PN_15_Sep_2021 (Maturity date: 15-SEP-2021)
  2. Sell TKP Promissory Notes: click on [SELL], enter quantity, price, and press the [SUBMIT ORDER] button.
Borrowing TKP token by selling TKP Promissory note in Order Book on Tokpie exchange
Get a loan by selling promissory notes

Example

As shown in the figure above, a borrower is going to sell 100 Promissory notes to lenders at a price of 0.94 TKP per one note.

After clicking on the Submit Order button, a borrower gets 94 TKP (0.94 TKP price x 100 notes) IMMEDIATELY. The potential Borrow APR (Annual interest rate) of that deal could be 24.78% if a borrower waits for a maturity date and repay principal amount 100 TKP on March 15, 2020.

However, a borrower has a great option to settle the Promissory Notes before maturity date at any time and unlock collateral! No, any penalties or fees will be charged for such settlement (early repayment).
An early repayment makes sense when a borrower urgently needs to withdraw collateral or when promissory note price goes down.
If the price goes down a borrower can purchase the same amount of the same promissory note title and click settle as shown here. The profit will be the difference between the sale and the purchase prices.

TIP: A borrower can set any ASK price and bargain in the Order Book trying to sell at a higher price. In other words, the higher the selling price the lower the borrow APR (cost of a loan)! 

How to repay Promissory notes and unlock collateral?

There are two options. The first one is to settle before the maturity date. The second option is to wait for the maturity date. During the Promissory note maturity day, the system will deduct the note’s principal amount from the issuer balance automatically. For example, if a user issued 100 [TKP_PN_15_Mar_2020] then 100 TKP will be deducted from his balance between March 15, 2020, 00:01 UTC and March 15, 2020, 23:59 UTC.

What happens if the Promissory notes are not paid?

If on the maturity date, a borrower doesn’t have enough quantity of TKP tokens to pay the promissory notes which he had issued, the system will liquidate collateral. 

How to get ETH by borrowing TKP

To get Ethereum (ETH) by borrowing TKP do the following:

  • Borrow TKP using ETH, TKP, or USDC as collateral
  • Exchange TKP for Ethereum on TKP/ETH market

How to get USDC by borrowing TKP

To get USD stable coin (USDC) by borrowing TKP do the following:

  • Borrow TKP using ETH, TKP, or USDC as collateral
  • Exchange TKP for USDC on TKP/USDC market

What is the Annual Percentage Rate (APR)?

APR (Annual Percentage Rate) is the annual rate showing the ‘cost’ of borrowing or ‘profit’ earned through lending. The APR formula is
(1-price) / price / number of days until the promissory note maturity date x 365 x 100%.
Borrow APR is expressed as a percentage that represents the potential yearly cost of crypto funds if a borrower repays a promissory note on its maturity date. It’s called potential cost because a borrower can settle a promissory note at any time before maturity.
Lend APR, equals to borrow APR, but represents the potential yearly income of crypto funds if a lender buys and holds a promissory note until its maturity date. It’s called potential income because a lender can sell a promissory note at any time before maturity.
Example: When a borrower receives 0.9 TKP on Dec 15, 2019, by selling a promissory note, that will mature on Mar 15, 2020, he will have to repay 1 TKP in 90 days. The cost of that loan is 0.1 TKP (1-0.9) for 90 days.
APR = 0.1 / 0.9 / 90 x 365 x 100% = 45.06%

Fees

Small trading fees are applied depending on a user’s subscription plan.

Profitable strategies for TKP lending and borrowing

Promissory notes trading strategy

Take a profit by buying TKP Promissory notes at a low price to sell them at a higher price and vice versa.

TIP: The growing price of promissory notes and plenty of BIDs in the order book is a good sign that the token’s spot price will grow soon on ordinary exchanges.

DeFi strategies to escalate incomes

Additional ways to increase income is to utilize two decentralized-finance arbitrage strategies.

Cross-cryptocurrencies arbitrage

Follow the simple strategy borrow at Low Rate and Lend at a High Rate. Institutional traders utilize that approach for decades in classic fiat markets when for example they borrow EUR at a low rate and lend USD at a higher rate because of ECB and FED different interest rates. Therefore, you can catch an option to lend USDC, ETH, or any other crypto at a higher APR than a borrowing rate for TKP token on a moment. In that case, TKP will be a funding currency. On the other hand, sometime TKP token lending rates can higher than borrow APR of other cryptocurrencies on any other platforms. In that case, it makes sense to get a loan in another crypto and invest in TKP token lending.

Cross-markets arbitrage

Another option is to make arbitrage by selling (borrowing) Promissory notes in one market with low APR and simultaneously buying (lending) a Promissory note of the same currency with another maturity day on another market at a higher lend APR.   

Passive income strategies

Above all, users can use simple passive income strategies without funds locking and minimal deposits. Lending TKP is like token staking but better because getting token staking yields always requires locking of funds.

  • Purchase TKP promissory notes when TKP token lending rates are high.
  • TKP token lending is especially profitable when TKP price is going to grow
  • When TKP token is oversold, buy long-duration TKP promissory notes
  • Regularly lend if you have TKP surplus

Hedging strategies

Due to constant market fluctuations borrowing strategies could allow you to earn profit and hedge the risks of the TKP token price dump:

  • Get a TKP loan when borrow APR is low
  • Borrow TKP if urgently need TKP, USDC or ETH
  • Sell TKP promissory notes (borrow) if TKP price is going down
  • When TKP overbought (price is too high) it’s better to borrow it then purchase directly from the market.
  • In case you face a TKP shortage, but can not find enough liquidity, try to borrow TKP instead of pumping the price.

Summary

TKP is becoming one of the best staking coins thanks to the unique P2P lending solution based on Promissory Notes trading. Borrowers can get instant loans from peers with fair-market rates, trade them or repay at any time without penalties. They also don’t have to pass through KYC and credit checks. Moreover, the ability to take funds with returns at any time and the absence of minimum deposit makes TKP lending better than any other token staking.

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