Multipli vs Traditional Yield Platforms

Tired of your tokens collecting more dust than returns? Multipli is here to change that.

In this blog, we'll draw comparisons between Multipli and other prominent yield protocols to determine which platform comes out on top. Before we get started, if you’d like a refresher on yield farming, here you go.

Traditional Yield: A Brief Overview

The traditional financial system includes savings accounts, certificates of deposit, money market accounts, and government bonds. These have been the backbone of traditional finance for decades, and still remain the go-to places for earning interest on savings.

However, there are a few downsides to the traditional system:

1. Interest rates are barely above inflation, making them an inferior option for growing your wealth.

2. These platforms are centralised, meaning your funds are under someone else’s control and subject to risks.

3. Traditional platforms can also come with high fees which can eat into your returns.

4. They have limited transparency, which leaves you in the dark about how your funds are managed.

5. The complexity of navigating these platforms can be a barrier for many potential investors.

Multipli: A Game-Changer

Multipli represents a new era of finance in web3.0, offering a decentralised platform where users can earn yields on their crypto assets which are substantially higher than our competitors. It simplifies complex financial strategies into an easy-to-use platform, offering consistent yields on various assets regardless of market conditions. Furthermore, Multipli is backed by extensive data (back-tested and front-tested), a wide range of asset options, and top-tier investors.

For a comprehensive understanding of Multipli's technical background, check out our Genesis story or dig deeper into our Docs.

While Multipli stands out in certain aspects, it's essential to compare it with other well-established yield farming platforms. This section dives into a comparative analysis of Multipli and its competitors, focusing on yield rates for Bitcoin and Ethereum.

The above chart illustrates yields on BTC, across four platforms: Aave, Gearbox, Nexo, and Multipli.

• Aave offers the lowest Bitcoin return at 0.5%.

• Gearbox provides a noticeably higher Bitcoin yield of 3.04%.

• Nexo demonstrates a slightly improved Bitcoin return at 4%.

• Multipli stands out as the top performer, offering a remarkable yield of approximately 12%, which is triple the next highest yield.

The above chart illustrates yields on ETH, across four platforms: Aave, Compound, Gearbox, and Multipli.

• Aave offers a negligible return at 1.6%.

• Compound's yield is slightly higher at 2.42%.

• Gearbox significantly improves the yield to 4.64%.

• Multipli delivers an exceptional yield of 12%, which is more than twice the return of the next best platform.

Multipli also stands out in various other aspects:

Accessibility: The minimum amount of $10 (equal to the cost of one futures contract) opens up the futures market to small investors by eliminating previous financial barriers.

Security: The self-custodial nature of Multipli enhances security by placing control of assets directly in the user's hands, eliminating the risks of platform hacks or insolvency.

Transparency: Users have direct visibility into their assets and transactions, reducing the potential for hidden fees or fraudulent activities.

The Bottom Line

The yield farming landscape is undeniably competitive, and selecting the right platform can significantly impact your returns. While each platform caters to different investor profiles and risk appetites, Multipli’s user-friendly interface, robust security measures, and proven strategies for consistent yield generation make it a compelling option worth considering.

Ultimately, the optimal choice hinges on individual investment goals and preferences. A thorough evaluation of various platforms, including Multipli, is essential to make an informed decision.

Are you ready to experience the Multipli difference? Start your yield journey now!