Earn Additional Yield on Your Crypto20 Investment
Drishti Bhagat Mar 08, 2021 09:00
Invictus Capital continues in their pursuit to provide their community with unique wealth creation opportunities.
Invictus Capital continues in its pursuit to provide its community with unique wealth creation opportunities. The InvictusCapital.com token, or simply ICAP, incentivizes investors to lock-up, or ‘stake’ their Invictus fund tokens to earn an additional return over and above the potential appreciation of the token value itself. ICAP tokens are earned by investors who opt to stake their investments for a fixed period of up to 12 months.
It is important to note the difference between staking Invictus fund tokens and earning ICAP. Each staker accrues ICAP based on their share of the overall staking power of the system. With the USD value of staked tokens as a base, staking power is enhanced by fund-specific and time multipliers. Investors are rewarded for every 30-minute staking period that they fulfill, resulting in new ICAP tokens becoming available for them to claim. In short, the larger and longer the stake, the greater the reward.
The rate of ICAP issuance began at a rate of 10,000 per week, which diminishes by 2.5% each week until a stable issuance rate of just 1,000 per week is reached by October 2022. This was an intentional design choice aimed at incentivizing early adoption: the earlier you start staking, the larger your ICAP stack.
ICAP derives its value from the allocation of a 10% rebate on all fees generated by Invictus Capital funds to buy-and-burn ICAP tokens off the market every week, similar to share buybacks, driving up the market price. Therefore as total AUM increases, so too will the amount used to buy and burn ICAP. Essentially, as more people invest in Invictus funds, the company’s fee revenue will increase, and with the price of ICAP expected to correlate with the size of the Invictus community, so too will the value of your ICAP. This dynamic incentivizes the Invictus community to spread the word about the company’s fund offerings to friends and family, helping drive mutually beneficial AUM growth.
Additionally, the staking of tokens allows Invictus Capital to deploy assets more efficiently. For example, funds’ assets can be committed to yield generation strategies for longer periods which typically provide greater returns.
CRYPTO20 already presents a great investment opportunity, boasting massive potential upside through exposure to the top 20 crypto assets, with significantly less volatility than any individual crypto asset. The long-term trend of the C20 fund’s performance has been strong, generating a return of 162% over the last three months. The ICAP token has so far followed a similar trajectory, with a 150% increase since inception — but with a market cap still under $1 million. It's important to remember that as more people start staking, and ICAP tokens reach the defined stable issuance, the price has the potential to go parabolic if the trajectory for AUM continues. Therefore, it seems an obvious choice to stake an existing Invictus Capital investments, rewarding you with an even greater return on your original investment.
Considering the price of C20 and the potentially undervalued ICAP tokens, C20 would be an excellent fund for investors to start staking and earning extra returns. At current ICAP prices just over $5.50, C20 staking returns (which are earned in addition to any C20 price appreciation) in dollar terms range from around 4% to 8% annually, depending on the duration of the stake.
Start calculating your additional returns by visiting the community-developed website through the link below.
Once the second phase of ICAP is launched, investors will receive even more benefits when holding ICAP, further incentivizing the staking process and supporting ICAP’s price. The second phase is set to function as a governance tool, allowing the community to vote and participate in the company's decision making. Furthermore, ICAP tokens will provide discounts on trade fees when the Invictus wallet exchange functionality goes live, resulting in reduced friction when shifting capital between Invictus funds. Thus, staking C20 over the long-run and earning additional ICAP is a great way to help mitigate the fund's occasional downside risk while still being exposed to the massive potential returns that the diversified C20 portfolio has to offer.
Image source: Invictus Capital Media