Savings is a service for anyone interested in earning extra money just by holding cryptocurrency. Now in a few taps, you can earn daily interest and rewards. It’s the safest and simplest way to earn passive income in crypto.

How does Savings work?

There are two ways to earn with ZenGo Savings:

  1. Providing liquidity: You are essentially loaning your crypto to a decentralized pool of liquidity where others can borrow it in return for paying you interest. ZenGo is currently using the Compound protocol for this. Compound is an algorithmic, autonomous interest rate protocol that enables people to provide and borrow Ethereum-based assets. Users add liquidity to asset pools (smart contracts) and borrowers can access that liquidity at any time. Interest rates for liquidity providers are calculated algorithmically by the protocol, based on supply and demand.
  2. Staking: Staking lets crypto holders earn extra income by contributing to the network security of a proof-of-stake (PoS) asset. By contributing (delegating) the voting rights associated with your asset to a validator node, you increase the chances of the validator to validate transaction blocks and in return earn rewards. They then share a portion of those rewards with their delegators. Currently, ZenGo offers staking with Tezos (XTZ), but in the future, we plan to add more staking assets. For more information on this topic, see the article on Tezos staking

How do I start making money with ZenGo Savings?

You can start earning in just a few taps by following these simple steps:

  1. Pick which asset you want to earn. You’ll find the available interest rates (APRs) on the “Savings” screen in the app to help you decide. 
  2. Tap on the asset. If you don’t own any, we’ve made it easy to buy or receive. 
  3. If the asset has an allocation wheel, turn the wheel to pick how much you’d like to allocate to Savings (some assets may not have an allocation wheel, just a simple “Activate” button).
  4. Press “Confirm” (or “Activate”)

That’s it! You’ve just started saving. Now just sit back and watch your portfolio grow. 

How do I deposit and withdraw?

There are two types of screens that you might encounter when depositing and withdrawing:

Allocation wheel: Some assets have an allocation wheel that you can turn to increase or decrease your allocation to Savings. These are the assets used for providing liquidity in Compound. For these assets, you can choose a portion of your funds to allocate by turning the wheel clockwise to deposit, and counter-clockwise to withdraw. 

Activate button: Other assets, namely Tezos for now, have an “Activate” button instead of an allocation wheel because you can’t choose a portion of your assets to stake — it’s all or nothing. Therefore, these assets don't have an allocation wheel. Instead, you simply need to activate your savings once per asset and your wallet remains activated forever. There’s no downside to this since the funds never leave your ZenGo wallet and are always accessible and liquid. If you send them out of your ZenGo wallet, you’ll simply stop earning the rewards on that amount. 

Where can I see my saving deposit and rewards?

To see your rewards just go to the savings tab in ZenGo. All the active deposits and rewards are presented there

Note that the savings balance for providing liquidity is not showing in the "My Wallet" balance because the funds were sent to the Compound smart contract (which you can also see in your activity history).

Staking funds, however, will show in the "My Wallet" balance

How do I get paid interest and rewards?

For providing liquidity, your interest accrues in real-time — every few seconds — and you receive it as soon as you withdraw from Savings into your wallet.  In addition, Compound rewards you in COMP tokens which are paid when you make your withdrawal. More details can be found on Compound website.

For staking, there's an initial waiting period of approximately 33 days before receiving your first reward payment. After that, you should receive a reward payment from the validator approximately every 3 days which gets deposited directly into your wallet. 

You can see all of your activities and earning history on the Activity and Savings screens in the app. 

Are my funds liquid while in Savings?

Your funds are always accessible from your ZenGo wallet while in Savings. All transactions are on-chain and only you have the ability to move your crypto. That said, there are slight differences between providing liquidity and staking in this regard.

Funds that you’ve provided as liquidity are essentially stored in a smart contract, so before being able to use them for a different purpose (i.e. sending them somewhere else), you need to withdraw them from the smart contract back to your ZenGo wallet. On the other hand, funds that are delegated to staking are never sent out of your wallet. You only delegate your voting rights for the asset, not the asset itself. So you don’t need to do any special withdraw action to be able to send them out of your ZenGo wallet.

Are there any fees associated with Savings?

The only fees you need to pay are network fees (not paid to ZenGo but to the blockchain networks) to complete your deposit and withdraw transactions or to activate staking. These fees generally must be paid in Ethereum (ETH) for providing liquidity, and in the native currency (e.g. XTZ) for staking.

Saving transactions on compound use smart-contracts. This results in deposit and withdrawal fees that are higher than a regular transaction because they are more complex to operate.

Important: Finally, note that in a period of high network congestion those fees can be volatile and relatively expensive if your deposits are relatively low. Those fees are dynamic and change all the time. To avoid high fees situations you can wait until the network congestion resolves. Your funds are still safe and can be withdrawn.

Which assets are supported in ZenGo Savings?

For earning interest through providing liquidity, we currently support Dai (DAI), USD Coin (USDC), 0x (ZRX), and Basic Attention Token (BAT).

For staking, we currently support Tezos (XTZ).  

Who holds my assets?

For providing liquidity, your assets are held in a Compound smart contract. For staking, your assets are held in your ZenGo wallet. Either way, all transactions are on-chain and you maintain full control from your ZenGo wallet. 

How do interest and rewards rates (APR) work?

ZenGo displays a variable annual percentage rate (APR) for every asset. For providing liquidity it is an interest rate set algorithmically by the protocol, based on supply and demand. For staking, it’s a rate set by the network and validators. We also display your estimated annual return, based on the APR and amount currently allocated to Savings. These are variable rates that change on a regular basis due to market conditions, so check back periodically to see your most updated APR. 

Where is ZenGo Savings available?

Everywhere the ZenGo wallet is available!

Is there a minimum deposit?

No, there’s no minimum. You can deposit as little or as much as you’d like, as long as you have enough funds to pay the network fees. 

Is there a fixed loan term?

No, there’s no fixed amount of time that you must keep your crypto in Savings. You can deposit and withdraw anytime. 

Are there risks involved?

Providing liquidity: Since providing liquidity involves sending your crypto to a 3rd party smart contract, there are certain financial and technical risks involved. From a financial perspective, borrowers on Compound have to post much more collateral than the amount they’re borrowing — called an “over-collateralized loan” — which protects liquidity providers from the risk of default. Also, Compound has a strong technical track record and has been audited and formally verified. For more information on Compound please read this article

Staking: Since you don't need to part with your assets in order to delegate them, your funds always remain in the safety of your ZenGo wallet. This means that validators do not have access to your funds, and you earn the rewards with no counterparty risk.

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