Interest Arbitrage? Try Voyager!

So basically I’m using this app called Voyager to make killer gains on various cryptocurrencies…

Voyager Application

I thought it would be a good place to park some liquid capital, given the fact that it will grow faster than my brick n’ mortar checking account.

At some point, we’ve all tried to scour the web for an online bank with the most alluring rates. The fact of the matter is, none of them are good enough. I remember signing on with Ally Bank for their attractive 2% until I found out it was getting consecutively lowered throughout the months.

I soon stumbled upon the importance of safety, liquidity, and rates of return, where I determined that the Voyager team actually presents itself as a prime candidate for the criteria!

You might be questioning this decision which is the reason for my explanation: The strategy is precisely to take advantage of their USDC interest rates.

Voyager will give you interest on a multitude of crypto investments and you can take a look at the interest table below.

Voyager interest rates

Of course, it is compelling to send all of your digital assets to this platform and earn great rates. The aggressive yield seekers can most definitely do this, but for those of us who are attracted to the triple threat mentioned above (Safety, liquidity, and rates of return), the USDC strategy looks quite appealing.

USDC is essentially the Coinbase equivalent to the U.S. Dollar. In the crypto industry they call it a “stablecoin.” There are other coins that are built to mimic the dollar which also fall under this stablecoin category. The basis for them is that they do not move in value and aim to hold the value of the dollar.

So, that means this asset is safe, meaning it won’t change in value. $100 equals 100 USDC. The next issue is one of liquidity, and thankfully these USDC tokens are extremely liquid with a simple, fee free exchange.

The most important part is the rate of return. It’s easy to find something that is safe and liquid, but not grouped with a decent rate of return.

The fact that Voyager awards 9% annually for holding USDC is nothing short of amazing. With one million dollars you could enjoy $90,000 every year and spend every cent.

For the more risk tolerant, you can throw in some hardcore crypto’s. These range anywhere from Bitcoin to the Voyager token, and can be staked just like your USDC.

Speaking of the Voyager token, that is also a promising opportunity. The interest rate on the chart shown above for the VGX token is actually wrong. At the time of writing this, they will rain down 7% on your VGX tokens, if you hold 500 of them in your account.

It is essentially incentive to hold onto their token and earn interest in THAT token. Yes, they will give you interest on your bitcoin, in bitcoin.

The VGX token has the ability to increase in value, which is why the mass adoption of their platform bodes extremely well for the coin. The mixture of capital gains and compounding interest is incredibly powerful here.

Multiple strategies exist beyond this, like shaving gains off the top and transferring back into USDC for the lucrative, predictable 9%. With a specified amount of VGX tokens Voyager will even boost all your current interest by 1%!

This all expands their business and they will make more money by employing this incentive program, but it does seem like a win win for both parties I have to say.

Without a doubt, any variation of this beats the jail cell of a checking account we’ve all complained about one time or another. I just hope this post could spark some ideas on how to change the way you view personal finances.

The simplicity of Voyager is simply something that appealed to me. There are indeed other platforms that have a similar business structure which are worth checking out.

Good luck and may the best rate win!

Avid investor — wordsmith — self-improver