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[10% ROI] Here Is How Indians Can Generate A Good Stable Passive Income From Crypto : Flint Money

Updated: Jun 22

[DISCLAIMER: THIS ARTICLE WAS DRAFTED IN THE MONTH OF MAY - 2022. FLINT HAS REVISED THE INTEREST EARNED FROM UPTO 13% TO UPTO 10%. PLEASE TAKE A NOTE OF THAT]


Investments in the world of Web 3.0 have been flooding as the use case of decentralized applications is becoming more and more evident. The advantage of transparency, speed, and automaticity is what can’t be neglected and hence a race to develop products having applications similar to traditional web 2.0 or specific to web 3.0 has started, to get the 1st mover advantage in the world of web 3.0.

Well, Flint is one of such new-age start-ups in the domain of crypto to simplify passive investment in the world of crypto. With a lucrative return of up to 13% per annum, no hidden charges simplistic design, and interface, Flint is creating waves in its young target audience. But before we get to know how flint works and its components, let’s focus on understanding some essential elements of web 3.0


What Is DeFi:

DeFi stands for decentralized finance and are the projects/products which abide by the core principles of web 3.0,

Ø Transparency

Ø Free for all system

Ø Interoperability

Ø Flexibility

By enabling DeFi, the inefficient traditional finance systems have become efficient due to the incorporation of smart contracts which introduce automaticity in the structure. Some of the very well-known applications of DeFi are stable coins, decentralized exchanges, lending platforms etc.


TVL vs Adjusted TVL Price to Time Graph

Source: Dappradar

This variety of applications to improve on the existing traditional finance system has enabled the inflow of a lot of investments. Currently, the total value locked in DeFi is equal to $121.93 billion according to DappRadar.



Top 5 DeFi Protocols According To Total Value Locked (TVL)

What Are Stable Coins?


Stable Coins Marketcap Graph

Stable Coins Market Cap

Stable coins are cryptocurrencies whose value is pegged to underlying assets like Fiat currency, gold, another cryptocurrency, etc.

So a stable coin that is pegged to the Indian rupee will always have a value equivalent to or in some cases very near to the value of 1 Indian rupee. They can’t be as volatile as other cryptocurrencies, as the value of the assets they are pegged against are not inherently volatile themselves.

Thus there is a stable movement of the value of the coin and thus the name stable coin. Some of the examples of stable coins are UST, USDC, BUSD, etc


ETHUSDT and BTCUSDT Market Rates Graph


Ether and Bitcoin


Fluctuations in USDT graphically, graph by CoinMarket Cap


USDT

How Does Flint Make Money?

Before I answer this question, do you know how banks make money? What traditional banks require is liquidity to function and profit off, which they get from their users depositing money with the bank. That’s why they have lucrative offers like Zero-balance accounts, free Debit/Credit cards, or even shopping offers that would incentivize users to open an account in the bank and deposit money in it.

Banks use this deposited money to give loans to individuals and big corporates which require liquid cash for a car, house, hiring people, office space, growing size of operations, etc. In exchange for the loans, banks hold on to their assets as collateral and charge a percentage on the principal amount lent to the Individual/Company. In exchange for providing liquidity, banks provide their users (the initial liquid providers) some share of the earned interest amount. That is how banks can pay interest on your Fixed Deposits, Recurring Deposits, or through any such schemes.


Traditional Banking System Flowchart


How Does Banks Makes Money.

Well, one of the ways Flint can give such high returns to its users is by lending them money to Institutional borrowers, which are chosen by Flint’s own risk assessment team. It consists of internal professionals as well as industry consultants which have experience working as a senior risk consultants at IIFL, Edelweiss capital, risk management for defi protocols, and crypto exchanges.

The other way they are promising these returns is through investing in DeFi Protocols which thus diversifies their portfolio and makes it much safer. Though the DeFi protocols are unknown, these protocols also generally dabble with lending and borrowing, staking, yield farming, and other such investment options. Some of the popular DeFi Protocols are Aave, Maker, Curve, Compound, Uniswap, etc.

Flint keeps a very small percentage of profit, above the 13% which its users are likely to make on the liquidity provided. It also bears all the transaction charges for the transfer of money to the borrowers or the users while withdrawing. You can think of Flint as your private investment advisor in the domain of cryptocurrency who will associate your funds on your behalf to give a stable return.

Process Of Investing Through Flint:

Currently, Flint is open to early access holders only and soon will be launched to all public. One of the best things about Flint is that it is very easy to operate and doesn’t involve a lot of thinking to be done by the user. I would go ahead and say it is easier than creating a Gmail account. To open the account, you just have to complete a small KYC which is common to most financial applications, but this surprisingly was very fast for me. It hardly took me 2 mins to see my dashboard. The money can be invested in Flint by using the UPI payment method and at a time has to invest more than 2000 Rs. Also, the funds can be instantly withdrawn at any moment without incurring any transfer cost as it is bared by Flint.

Why Does It Make Sense?

A big hindrance for the users to invest in this volatile asset of cryptocurrency is that it requires proper research. There are a lot of avenues that can give a considerable percentage of returns on investment, however, to invest in them, the investor must vary the technical terms in the blockchain world, and must be vary how protocols work. If they are not, they might get influenced by the trend, they might get duped with all their money. Also, the uncertainty of the volatile assets scares the general public due to the simple fact of not being used to this.

To solve this exact problem is the aim of Flint. It has created a simple, well-designed platform, which allows users to generate passive income through investing in cryptocurrency, without actually spending the time in understanding the concepts of the blockchain. It also tries to give a lucrative return of up to 13%, which is more than double the average Fixed Deposit rate in India. Also as a special early access reward, Flint offers a chance to double that return to 26% if your invite deposits the funds and starts using Flint.

It is also granting fewer risks for users investing through their platform by using only stable cryptocurrencies which are not that volatile, taking considerable collateral in the form of top 10 coins from borrowers, having and hiring their professionals for risk assessments, and providing a no lock-in period. Also, trading using the stable tokens pegged against the US dollar give the investors the inherent advantage of profiting every time the US dollar appreciates. It’s a rare investment that might give a high return for fewer risks involved.

Other kinds of risk mitigation measures including top of the line security for all the transactions flint conducts. According to the website of Flint, All of Flint’s data exchange happens through SSL and uses TLS 1.2. Apart from this, sensitive data is securely stored with AES-256 encryption. The business partners are financially audited at regular intervals to check on bankruptcy, risk, and fraud. Flint has also based its headquarters in Singapore, which is a Pro-Cryptocurrency government. That is why, if India decides to go anti-crypto, the funds deposited at flint will be safe and we can withdraw them later.

In an interview, Anshul Agrawal, the co-founder of Flint said that the age group its targeting is 25–40-year-old Mutual Fund Investors. This is such a perfect market to target especially considering the growth of new young investors in the market. According to the statistics of 2021, only 3.7% of the Indian population invests in equities and it is growing at a staggering rate. This number was only 1.5% according to another report in the year 2018. Flint is hoping that they will have a total user base of 500 million across the globe.


Rising Share in Mutual Fund displayed


Rising Share in MF

Sponsors For Flint:

Flint has been sponsored by a lot of well-known VCs and angel investors. Some of them are Coinbase Ventures, Better Capital, Antler India, and MSA Capital also participated in the round along with 60 angel investors including Kunal Shah (founder, Cred), Tanmay Bhat (The Youtuber), Polygon cofounders Sandeep Nailwal and Jaynti Kanani, Snapdeal co-founders Kunal Bahl and Rohit Bansal, among others. With this, they have been able to raise $5.1 million in just the Seed round. It is planning to use these funds for hiring for senior positions, making a strong legal team, in designing a good product.


All sponsorships of Flint and it's seed round investment


Sponsers of Flint.

Future Plans Of Flint:

Flint currently only accepts INR deposits but soon will accept the deposits directly from stable cryptocurrencies, USDT, USDC, and UST, and soon will be supported on Ethereum, Polygon, Solana, and Terra networks. Flint is currently working for India only but soon will start working for investors all over the world since Flint aims to be a global product.

Conclusion:

I am liking this product due to the utility it is bringing to the investors. I know of many who are aware of the potential of cryptocurrencies but are hesitant to invest in/through them due to inadequate knowledge. The bank saving schemes now just don’t cut it above the inflation level and hence the funds deposited are depreciating. A product like Flint can prove to be very useful for investors as it offers security to the funds, it has comparatively fewer risks, more returns, and a chance to have a diversified portfolio. In a country like India, where the majority of the population are young and are taking a deep interest in Finance, this product will be very useful for them.


Socials of Flint:

Twitter: https://twitter.com/intent/follow?screen_name=flintdotmoney

Youtube: https://www.youtube.com/channel/UCRfk5kpsWl_bWqlbWnDVVIw

Telegram: https://t.me/flintdotmoney

Linkedin: https://www.linkedin.com/company/flintmoney/


Written By: Arjun Patil

From: Coinverse.

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