How can investors benefit from BitBay’s Dynamic Peg?
There are many lucrative benefits to for investors who hold BAY:
Positive Price Pressure —
As the user-base for BitBay’s decentralized marketplace increases, so does the demand for liquid BAY needed within its Double Deposit Escrow contracts. As both buyers and sellers lock Liquid BAY into contracts for the duration of their deal, the amount of available Liquid BAY is reduced. This puts positive price pressure on Liquid BAY’s exchange rate.
Also, more Liquid BAY being locked into contracts equates to fewer Liquid BAY staking on the network, and therefore less “staking competition”. So the more BitBay’s marketplace is used, the higher potential ROI of investors who participate in staking.
Variable Staking Rewards —
BitBay’s Dynamic Peg brings a lucrative variable stake reward system to investors/nodes:
- Liquid earns 5 BAY rewards
- Reserve earns 10 BAY rewards
- Frozen Reserve earns 20 BAY rewards
- Frozen Liquid earns 40 BAY rewards
***Note: The annual rate of return on stake rewards depends on how many stakers are active, annually. It is unlikely that every user who holds BAY will stake, allowing for a higher annual return for those that do.
Independent Correlation —
With the Dynamic Peg, BAY’s correlation with Bitcoin and the larger cryptocurrency market is completely independent. The direction of price is chosen by the users themselves, and not any large entity. This creates a unique hedging alternative during prolonged bear market cycles, yet can still achieve positive correlation during bull runs.
During past bear cycles, long-term investors have often chosen to move their capital into both fiat currency and fiat-backed stablecoins. At best, this has allowed them to preserve any profits and minimize losses.
However, with dynamically pegged BAY, they have the potential to continue making profits while waiting out the market cycle. As an uncorrelated asset, combined with higher annual ROI from staking frozen coins, BAY presents a lucrative option for investors.
Active influence —
For the first time, investors can play a direct role in the value of their investment, without being a whale. When the market makes a turn, anyone who holds BAY can vote to temporarily freeze/unfreeze the liquid supply, allowing the majority consensus to apply pressure on the price.
With the BitBay Markets Client, investors who hold BAY can benefit from one of the most secure (and advanced) crypto wallets in the industry.
- 2 key multisignature wallets
- Steganography (hide private keys within images)
- Cold staking (between two computers)
No need for expensive mining equipment to earn passive income. With BitBay’s Proof of Stake 3, anyone who holds BAY can earn newly minted coins (in the form of stake rewards) with a simple laptop computer.
Questions, comments, concerns? Please post them in the comments below!