Bitsave is a SaveFi protocol that merges Savings with DeFi letting users save their assets and also earn interest on them.
It is one of the digital products Cryptosmart is building with their upscaling to Algorand.
Bitsave protocol allows users to perform SaveFi activities like saving in stable assets, $CSA token, Algos and any other assets of their choice.
Features of Bitsave protocol
Saving in cryptocurrency is also a way of saving in dollars and BITSAVE makes it easier.
Unlike centralized banking savings activities, you will be in control of your savings.
Saving in the bank might be the best decision till you realize that your money is actually reducing and not increasing due to several charges and inflation.
Aside from the potential increase in the value of assets, Bitsave protocol rewards users with interest on their savings.
- Locking funds for specific purpose
There are times that you will love to save but before you know it, you have spent more than half of your savings if not all.
Bitsave protocol will help you to stay disciplined with your funds because you will be able to temporarily lock your funds for certain purposes.
The funds will be available on the withdrawal day that was set.
- DeFi Activities
In order to bring a balance between emergency needs and locked funds, Bitsave is an integration of savings into DeFi.
DeFi activities like borrowing and lending can be done using the Bitsave protocol.
Swapping of assets directly to other assets is not supported on certain exchanges.
For instance, you might not be able to convert your BTC to Algo directly unless you convert it to USDT first.
Bitsave comes in handy with a swap feature which will enable you to easily swap your assets to other assets at relatively low fee.
- Cross chain staking with Algomint
With Bitsave protocol, you will be able to perform DeFi activities with high performing assets such as BTC, ETH using Algomint’s goBTC and goETH.
Benefit of using Bitsave protocol
- Low deposits
Bitsave protocol will allow you to save with as low as $10 periodically.
If you are to buy or transfer some crypto assets on some blockchain, this might not be enough to cover up for the transaction fee.
- Inflation and devaluation
Inflation in Nigeria is now growing beyond double figure and the rate keeps increasing.
Devaluation was not stopped either. So both inflation and devaluation are affecting Nigerian naira.
Inflation is the persistent increase in the price of goods and services while devaluation is the reduction in the purchasing power of money.
As devaluation of currency is happening, the value of your assets keeps growing because they are valued in dollars and not naira.
Aside from that, the increase in the value of your asset will help to keep the value of money in check even if there is inflation.
- Learn, save and earn
In order to give back to the community, Cryptosmart will be educating its users on the new trend in cryptocurrency, how to earn, how to preserve their assets among others.
Also, newbies in the cryptocurrency space will have access to a series of teaching and guidelines from the Cryptosmart community for being a user of the Bitsave protocol and any of their products.
- Reasonable saving interest
It is funny to note that Nigerian banks give 2% per annum on a savings of ₦5,000,000.
Getting the fund in Nigeria is another issue not to talk of the inflation rate that keeps increasing.
Bitsave protocol will reward its users with a reasonable savings interest which will be regarded as APY (Annual Percentage Yield).
- Low fees DeFi activities
Doing DeFi with certain assets might not be rewarding due to the high transaction fee.
Such assets can be used for DeFi activities through Algomint’s cross chain which will be available on Bitsave protocol.
- Dollar Cost Averaging
Dollar Cost Averaging is a technique used by professional traders which is not known by all.
It is the periodic buying of certain crypto assets regardless of the price.
For instance, if you bought 1 BTC when the price was $45,000 and bought another 1 BTC when the price goes up to $50,000.
You bought another one when the price gets to $30,000.
The average price of your BTC will be $30,000 + $50,000 + $45,000 divided by the number of BTC which is 3 BTC in this scenario.
So the value of each BTC will be $41,667.
Regardless of the value when you bought, the average price will help to keep the cost per asset to be low.
Bitsave will also help you to average out the dollar costs since you will be buying periodically irrespective of the price.
- Hedge against dip
The benefits of Dollar Cost Averaging and also the interest that will be earned for using Bitsave protocol will keep you in profit even if there is a dip.