Traditionally when it comes to investing, certain privileges were reserved exclusively for those with a high net worth. As the saying goes, the rich get richer. Many analysts suggest that part of the reason is that this group earns higher returns on their investments than those considered “average investors.”
The result is that the wealth gap between the rich and the poor has continued to widen, suggesting that a solution is needed now, more than ever. Consequently, the concept of democratizing wealth management has continued to grow in popularity to equalize the playing field. With automated trading and other digital solutions, some of the same opportunities given to high net worth clients are also being given to regular investors.
To achieve this, SwissBorg has dedicated their teams to democratizing wealth management by making it fair, fun and community-centric. Met with initial success, the CHSB token has seen explosive growth, with over 500,000 users joining the ecosystem. By being token holders, these users gain several benefits from the token’s utility, such as the advantage of reduced fees and boosted yield to set up users for long-term wealth management.
With the goal to continue growing the SwissBorg ecosystem and further increase the demand for the CHSB token, the team has since been considering ways they could reinvent the yield program to make rewards more equitable. SwissBorg has since announced the release of an optimized yield distribution to boost the earnings of smaller token holders; this approach takes shape in CHSB Yield 2.0, a program that quantifies the inequality in the wealth distribution in order to improve it through an optimization algorithm. The team shares that inspiration for yield 2.0 came from an article by Vitalik Buterin, where he explores the weakness and strengths of different inequality measures applied to the crypto context.
Alex Fazel, the Chief Partnership Officer shares that, with these efforts,
“Centuries of exclusive finance have suddenly become inclusive. Yield 2.0 Instantly boosts APY% in the short term for the less fortunate or newbies, while substantially growing wealth for the fortunate or veterans. We are hoping this redefines the old yield standards which only benefit the already wealthy.”
As a result, CHSB Yield 2.0 is said to be the first of its kind implemented in the cryptocurrency space, designed with promising yields that will, in turn, accelerate the wealth of the community as a whole.
A reward for new users
So, how does a yield program democratize wealth management?
CHSB Yield 2.0 introduces the concept of yield tiers. In practice, this means the yield a user will earn will be dependent on how many CHSB tokens a user is holding in their yield wallet. In this case, each user’s yield wallet is divided into five progressive tiers with different annual percentage yield rates, with tier 1 holding the first 2,000 CHSB, tier 2 holding the next 8,000, and so on.
This innovative yield calculation approach is the key element of the CHSB Yield 2.0. By defining tiers with different rates, SwissBorg offers very attractive yield rates for smaller holders to attract new users. Besides, the mechanism ensures that the more CHSB tokens a user holds in their CHSB yield wallet, the more they will earn. The same is true for large holders, as all users benefit from the progressive tiers and a minimum return.
For the SwissBorg community, smaller token holders benefit the most with an opportunity to accelerate the growth of their wealth at the rates of high net worth investors. The faster this group achieves this, the sooner they can achieve Community Premium, with dual benefits including growing their wealth with a 1.5x yield multiplier applied to all yield-eligible assets and reduced fees due to staking CHSB for 12 months.
The reduction in the circulating supply of tokens will then benefit larger token holders since the growing SwissBorg ecosystem will only increase in demand as supply decreases. Therefore, high net worth investors can also be confident that the value of their investments will likely grow in the long term.
A fair and growing community
Over the past 12 months, the team has reported numerous achievements, including reaching 500,000 verified app users, almost 2 billion in user assets held in the SwissBorg app, 741 unique cryptocurrency and fiat trading pairs and the addition of Bitfinex to the team’s Smart Engine, which now leverages five exchanges to ensure users get the best price and liquidity on exchanges.
With a strong foundation for growth, the team is looking to add more tokens, more yield wallets, an IFO launchpad and a translation of the app in French.
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