While DeFi offers many exciting investment opportunities, the yields can change day to day and even minute to minute. Many believe these fluctuations come with the territory, but our team has been working hard to change that.

Donut’s newest feature combines the high-yield power of DeFi with a predictable fixed return—plus, like everything on Donut, it’s incredibly simple to use.

Meet Donut Fixed.

What is Donut Fixed? 🍩

Donut Fixed is a new investment feature within the Donut App where you can work your money harder by earning a set interest rate of 4% APY on every dollar saved through your quick deposits and automated investments.

3 Basics for 4% APY

  1. Predictable: 4% fixed yield, no matter what
  2. Real-time: interest paid literally every second
  3. No lock-in: withdraw anytime, no annual commitments

4% interest! How is that even possible!? 💸

Donut works alongside lending partners in the crypto securities and DeFi space in order to ensure you the best, most consistent yields on your money. When you add funds to Donut, we convert your USD to stablecoins called DAI, which can earn higher interest than traditional currencies.

Through our lending partners, we generate high interest on these stablecoins for periods of 12-24 months, which means we can guarantee rates up to 4% for your funds. You just sit back and watch your wealth grow. Simple.

How is my interest rate calculated? 🧮

Interest rates are calculated based on the dynamics of the decentralized money markets. Thanks to agreements with prime brokers and funds in the DeFi space, we’re able to set a rate that offers you a consistent 4% APY no matter what.

Can the fixed rate change? 📊

These rates will stay consistent for the 2021 fiscal year. In the future, we plan to inform our community of any changes to the fixed rate far in advance. We’re also working on some ways for you to increase your fixed rate, so keep an eye out.

How often is my interest paid? 📆

Traditional interest-generating products pay interest every month, quarter or year. With Donut, there are no annual terms and you earn your interest in real time.

Donut Fixed compounds your interest every few seconds, which you can track on the live ticker within the app. This way, you can quite literally watch your savings grow. The larger your Donut portfolio, the more interest you earn every minute.

When can I withdraw my funds? 💵

While the interest rate is fixed, Donut Fixed is totally flexible to use. We make sure your funds are available to you whenever you need them. There are no lock-ins or annual commitments and you can withdraw your funds at any time with no fee. Withdrawals from Donut can take between 1-5 business days to process depending on your bank.

How much can I deposit? 💰

Once you've connected your bank account to Donut, you may deposit as little as $10, or as much as $10,000 in one transaction. You can add funds to Donut Fixed instantly via ACH or schedule recurring investments every day, week or month. Our current deposit limits are $100,000 per month.

How is Fixed different from Donut Savings? ⚖️

While both strategies leverage DeFi markets for high interest rates, Donut Fixed differs from Donut Savings (now called Variable in app) by offering consistency regardless of market shifts.

Our Variable product leverages Compound, where rates fluctuate according to supply and demand in the stablecoin lending markets. This means that while interest rates can be flat for a period of time, they sometimes dip down to 1% or rise as high as 8-10%+.

Therefore, Donut Variable has a greater potential upside while Donut Fixed guarantees an APY over 10x greater than conventional high yield products.

For Donut Savings (Variable) users, turning on Donut Fixed takes exactly 8 seconds...we timed it

I’ve been using Donut Savings, how do I switch to Fixed?🎚

We’ve made this as simple as flipping a switch in the app:

  1. Tap the ‘Variable’ button next to your interest rate on the home screen
  2. Select 'Fixed' in the strategies menu
  3. Swipe 'Switch' to start earning with Fixed

At this time, you may only allocate your funds 100% to either Variable or Fixed interest, however we’re planning to introduce custom balancing and new investing strategies (like Variable Pro) next year!

Is Donut Fixed FDIC insured?🔏

Funds on Donut Fixed, as with all digital currencies, are not FDIC insured. The FDIC specifically insures USD deposits and does not apply to stablecoins (such as DAI) and other cryptocurrencies.

And this is alright by us - Donut is not here to replace your bank account, but to help you discover new ways to save smarter, work your money harder and grow your wealth.

Yield-earning products such as ours can be part of a well-diversified financial portfolio—one which includes stocks, ETFs, digital assets and cash savings in a bank account.

So, is it safe? 🛡

Safety is and always will be our top priority at Donut. In addition to securing your accounts and personal information with the best possible encryption, we also work with trusted, heavily audited lending partners, such as Compound, to make sure your funds are safe.

Lending in DeFi markets is highly collateralized, which means borrowers put up 100-150% collateral in order to take out a loan. For you, this means that your principal is always covered, even in the case of a default.

DeFi is an emerging technology, however, and everyone should consider its risks—including smart contract failure—and use discretion when investing. Read more about risk and safety in DeFi protocols and stablecoins on Compound and MakerDAO.

Have more questions? Our team is here to help - feel free to message us directly in-app or write us an e-mail at support@donut.app

Real talk 🚨

Any saving and investment strategy puts your capital at risk.

The above information is intended for informational purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.