VELAR CAPITAL
What is a stablecoin deposit: glossary
Terms from the interface, the agreement and the ledger — short and without marketing. All you need is an amount in USDT and a term: the rate is a plan condition, not a promise of payment.
How accrual is calculated
Accrual is calculated from the body and the daily rate with a cumulative floor: the sum of daily amounts equals the accrual for the whole term.
Terms and rates
The rate grows with the amount and the term; a longer term adds a fixed step and is capped. The rate is fixed when the deposit is opened.
What to check yourself
Every number can be checked: the plan grid is public, accruals appear in the cabinet ledger, and cycle aggregates are published openly.
- USDT
- A stablecoin pegged to the US dollar; the unit of account for deposits on the platform.
- Tier
- A tariff level with a minimum, a maximum, three terms and a daily rate.
- Term
- The number of days chosen when opening a deposit: a short, medium or long term.
- Daily rate
- The percentage of the body for one calendar day; stored in basis points in the code.
- Body
- The principal amount of a deposit without accrued interest; returned at maturity or early.
- Accrual
- The amount the plan credits for a day or a term: a credit, not a payout.
- Epoch
- One day of the protocol, at the end of which declared revenue is distributed across positions.
- COVER
- An internal protocol account that receives a share of each daily payout. Not insurance.
- Request
- A payout instruction: it reserves the amount, passes a review and settles in the network.
How interest accrues on USDT: questions and answers
How is a USDT deposit different from staking?
With staking the reward depends on the network and its rules; here the amount and the term are set by the plan: the rate is a plan condition and the body returns after the term. Income is not guaranteed in either case.
How is this different from a bank deposit?
A bank deposit is covered by a state insurance scheme; there is no such protection here, so the risk of losing the principal sits with the client. In exchange, the rules, fees and ledger are open before you start.
Is the COVER reserve insurance?
No. COVER is an internal accounting account: part of the daily accrual is moved there, but no payouts come from it and it grants no right to compensation.