| Traditional Process | To generate yields:
| To withdraw money:
| |
| Return's Process | To generate yields:
| To withdraw money:
|
# Use cases ## Uses for Clients The Return Finance app is a powerful alternative to traditional retail savings products. Its intuitive interface allows clients to easily access bank-beating returns on their money. ## Uses for Businesses Return Finance is a product that’s also tailored towards the needs of SMEs (Small and medium-sized enterprises), to which it can offer a financial return on the idle treasury reserves in their possession. Тhe owner of an independent music recording studio uses Return to deposit €300 000 that their company owns. With a 6.5% APY, in three years that amount will add up to €358 500.00, which can then be used for new equipment or any other enterprise-expanding venture that is deemed useful. Or, a medium-sized IT company with offices in New York, Sofia and Stockholm has an idle treasury reserve of €500 000. That money is currently not being used for any operational or expansion needs but is at risk of being devalued by inflation. If the company uses a Return account to keep its reserve, in three years it will have made €597 500.00 at a 6.5% APY. For yet another example, large-sized enterprises, who want to diversify their assets and investments, usually stay shy of the DeFi and crypto sector, because of their low tolerance of risk. This is where Return offers them a chance for a high-yield crypto investment, while the volatility risks associated with this sector are minimized. With a service like Return, the CFO and Board Members of such a company don’t need to learn everything about DeFi from the ground up. Instead, they will use an application that follows familiar fintech methods using fiat money, offered in a to-the-point interface. So, if the enterprise decides to invest €1 million in their Return account, in three years they will have made €1 195 000.00 with a 6.5% APY. ## Uses for Institutional Investors Institutional capital allocators face unique challenges when exploring decentralized finance due to 'duty of care' obligations that restrict direct interaction with unregulated DeFi protocols. This is where Return Finance steps in as a fully compliant solution, bridging the gap between institutional investor needs and decentralized finance yield opportunities. Holding a VASP Authorization in the EU and a VQF membership in Switzerland, Return Finance operates within a stringent regulatory framework, adhering to anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. Return Finance provides institutional investors with regulated access to competitive, cross-chain yield generation on USD stablecoins and Ether through a curated selection of DeFi protocols, including MakerDAO, Aave, and Lido. Our platform enables institutions to leverage DeFi’s benefits without compromising on compliance or security, offering auditable transaction trails and secure custody backed by industry-standard partners like Fireblocks. With secure custody and an intuitive interface, Return Finance delivers a seamless, compliant path for institutional investors to diversify and enhance their portfolios. By simplifying DeFi’s complexities, we make yield generation both accessible and practical within a regulated environment. ## As White Label & API Our service can also act as a white label product and function as an Application Programming Interface (API), offered to third-party neobanks, exchanges and other fintech. These businesses don’t need to use the mobile app directly, but rather an API service provided by our company. This will offer them a chance to give high-yield vaults to their clients in their own digital ecosystem, powered by Return. # How is yield generated? Understand more on how the APY is generated. Return Finance bridges the gap between traditional finance and decentralized finance (DeFi). Our strategy involves supplying USDC and ETH as liquidity to DeFi protocols while leveraging LP token rewards. This allows depositors to earn a high Annual Percentage Yield (APY) on their savings. Before providing liquidity, clients can use our service to exchange U.S. Dollars for their digital counterpart, United States Dollar Coin (USDC). As a stablecoin, USDC is a digital representation of fiat currency, pegged 1:1 to the U.S. Dollar. It is 100% backed by fiat reserves and fully regulated, ensuring a transparent and seamless conversion and tracking process. Alternatively, USDC and ETH holders can deposit their digital assets directly into their own segregated wallet within the app. ## What is APY? Annual Percentage Yield (APY) is a measure used in DeFi to express the annualized rate of return or interest earned on an investment or deposit. It takes into consideration how often the interest is reinvested or added back to the principal amount. By factoring in compounding, APY provides a more accurate representation of the actual return on an investment compared to a simple interest rate. ## What is Curve Finance? Curve (CRV) is widely recognized as one of the biggest and most popular platforms in DeFi due to its emphasis on stability and composability rather than volatility and speculation. Based on [automated market makers](https://docs.return.finance/how-is-yield-generated#what-are-automated-market-makers) (AMMs), the protocol offers a highly efficient way to exchange tokens while maintaining low fees and low slippage. \ In order to ensure lower fees for the liquidity providers who supply the pools with tokens, Curve is only accommodating liquidity pools made up of similarly behaving assets. The protocol incentivizes the [liquidity providers](https://docs.return.finance/how-is-yield-generated#liquidity-mining-and-yield-farming) (LPs) to participate, by integrating with external DeFi protocols and delivering rewards in the form of CRV tokens and interest.
# Regulations & Authorization ## Virtual Asset Service Provider (VASP) Return Finance is authorized in the European Economic Area as a Virtual Asset Service Provider (VASP) under registration No. 306264593 by the [Financial Crime Investigation Service](https://www.fntt.lt/en/) (FCIS) of Lithuania. Once a company is verified as a VASP by a similar institution within the EU, it has the right to operate in all 27 member countries. The FCIS enforces rigorous and mandatory monitoring for customer due diligence, alongside hiring the standard money laundering reporting officer, as part of the AML/CTF (Anti-Money Laundering/Combating the Financing of Terrorism) policies and procedures, all an important part of acquiring our VASP authorization. We are also included in [the official registry of crypto companies](https://www.registrucentras.lt/jar/sarasai/vvko.php) in Lithuania, on 28.04.2023. As an authorized Visual Asset Service Provider (VASP) company, we can the following services: 1. Engage in virtual currency exchange, depository operations, as well as virtual currency wallet operator activities and other economic and commercial activities with the purpose of making profit. 2. Any activities related to virtual currencies, as follows: * The provision of depositories and wallets for virtual currency and assets to people and companies (natural and legal persons). * The management of virtual currency depositories and virtual wallets on behalf of clients * The exchange, purchase and sale of virtual currencies and virtual assets * The direct initial offering and distribution of virtual currencies issued by the company, including virtual tokens * The initial offering and distribution of virtual currencies, including tokens, issued by the company's clients, directly or through third parties. * Other activities related to virtual currencies and virtual assets. ## Financial Services Standards Association (VQF SRO) membership Return Finance has also attained membership with the [Financial Services Standards Association (VQF SRO)](https://www.vqf.ch/en/vqf), under the membership number No. 101140. Based in Zug, the VQF, officially recognized and supervised by the [Swiss Financial Market Supervisory Authority (FINMA)](https://www.finma.ch/en/), is Switzerland's leading self-regulatory organization (SRO) dedicated to combating money laundering and preventing the financing of terrorism within the financial sector. Membership in the VQF SRO is a mark of prestige and compliance, encompassing a diverse range of financial intermediaries. These include providers from the parabanking sector such as payment transaction services, credit providers, investment companies, independent asset managers, and collective investment schemes, among others. As a member, Return Finance aligns itself with organizations committed to upholding Switzerland's stringent financial operational and business standards. The VQF offers its members a comprehensive suite of services, including supervisory, inspection, audit, training, and advisory services. These are designed to ensure adherence to the highest standards of AML legislation and prevention of financing terrorism regulations, securing the operational integrity of its members. Through this membership, Return Finance is enabled to expand its services to Swiss customers and businesses.
# Return Finance Smart Contracts Understanding smart contracts and how Return Finance smart contract is safeguarding your assets. ## What is a Smart Contract? A smart contract is a digital contract encoded in software. It's a set of instructions and rules that self-executes and enforces the terms of a contract automatically. These contracts run on blockchain technology, which means they operate in a decentralized and transparent environment. ### Upgradeable Smart Contracts Upgradeable smart contracts offer a more flexible and adaptable alternative to traditional immutable contracts. Unlike their immutable counterparts, upgradeable contracts can be modified after deployment, allowing for continuous improvement and responsiveness to changing needs: * **Evolving Functionality:** Upgradeable contracts can be updated to fix bugs, add new features, or comply with new regulations. This ensures that the contract remains effective and relevant throughout its lifespan. * **Controlled Adaptability:** Although the contract can be updated, this process is controlled and secure, ensuring that only authorized changes are made. This controlled adaptability allows the contract to evolve without compromising its integrity. * **Ongoing Security:** By enabling updates, upgradeable contracts can quickly address security vulnerabilities as they are discovered, providing a higher level of protection over time. This proactive approach enhances the long-term security of the contract. * **Future-Proofing:** As technology and business environments evolve, upgradeable contracts can adapt, ensuring that they continue to meet the needs of all stakeholders. This future-proofing makes upgradeable contracts a more sustainable solution for long-term projects. Overall, upgradeable smart contracts combine the benefits of blockchain technology with the flexibility needed to adapt to a dynamic environment, offering a more secure and practical approach to smart contract management. ### Return Finance Smart Contract: Safeguarding Your Assets The Return Finance smart contract is a prime example of a secure, transparent, and efficient way to manage digital assets, specifically USDC (a stablecoin pegged to the US Dollar). #### What It Does: This contract allows users to deposit USDC, which is then strategically allocated to established DeFi (Decentralized Finance) protocols such as Aave, Compound, and Yearn. The goal is to optimize returns while managing risks. #### How It Protects Your Investment: **Admin Controls for Safety:** Smart contract functions provide emergency controls to safeguard assets against unforeseen vulnerabilities. **Emergency Withdrawal:** In extreme situations, it allows the admin to quickly withdraw all funds from external protocols and move them to a safe location back to the Return Finance main wallet that is[ Powered by Fireblocks](https://www.fireblocks.com/). **Recovery of Misplaced Assets:** Smart Contract functionality that helps in recovering assets sent to the contract accidentally. **Transparency and Autonomy:** As with any smart contract, once deployed, the Return Finance smart contract operates autonomously according to its predefined rules, ensuring transparency and consistency. **Audit:** Return Finance’s smart contract has successfully passed an audit conducted by WeiChain, ensuring that the contract is secure and reliable. Full details of the audit can be found here - [WeiChain Audit](https://docs.return.finance/audits). For users, this means that your USDC is managed automatically, leveraging the efficiency and security of blockchain technology. Your investments are not only precisely allocated across different platforms but also benefit from the inherent security features of smart contracts. With the Return Finance smart contract, your assets are in a system designed for resilience, transparency, and growth. *** ## Return Finance Smart Contracts V2 The V2 of Return Finance's smart contracts introduces ERC4626-compliant vaults, integrating various DeFi protocols such as Aave, Compound, Convex, Curve, and Sparklend (MakerDAO) to optimize yield on USDC. These contracts feature specialized functionalities tailored to each platform, including automated strategies for yield generation, slippage management, and reward harvesting. They uphold robust security measures, including whitelists and emergency rescue options, ensuring asset safety and compliance with the latest standards in decentralized finance. ### Overview Each V2 smart contract is designed to enhance Return Finance's interaction with major DeFi protocols, including Aave, Compound, Convex, Curve, and Sparklend (MakerDAO). They provide automated yield optimization strategies across different assets, primarily USDC, leveraging the unique mechanisms of each platform. ### Key Components * **Whitelist System:** Controls access to the vaults, enhancing security and operational control. * **Emergency Functions:** Capabilities to perform quick withdrawals, halt operations, or rescue funds in critical situations. * **Reward Mechanisms:** Built-in functionalities to manage and harvest DeFi rewards effectively. * **Security Measures:** Incorporates features like asset rebalancing, automated health checks, and contingency plans to mitigate risks. ### Contract Functions * **Deposits and Withdrawals:** Custom hooks to manage funds flowing into and out of DeFi protocols. * **Swaps for Harvesting:** Automated mechanisms to convert harvested rewards directly into USDC, optimizing liquidity and minimizing exposure. * **External Contract Interactions:** Ability for vault owners to interact with other contracts for functionalities like claiming airdrops or engaging in governance. ### Deployed Contracts [Aave V3 (USDC) on Polygon](https://polygonscan.com/address/0x0271a46c049293448c2d4794bcd51f953bf742e8) [Fluid (USDC) on Base](https://basescan.org/address/0x3936bc108a503c301e4a7d9a8937ae5ab1b10fd6) [Fluid (EURC) on Base](https://basescan.org/address/0x367f44fbd5a9c2fdbf18d98f0dabf15e22da7194) [Benqi (USDC) on Avalanche](https://snowtrace.io/address/0x3A3dAdbca3ec5a815431f45eca33EF1520388Ef2) [Ethena (USDC) on Ethereum Mainnet ](https://etherscan.io/address/0xb41c4126bb6145e8582946e2990ae61ab5b73b76) [Convex Finance (USDC) on Ethereum Mainnet](https://etherscan.io/address/0x4D7F26a161a3e1fbE10C11e1c9abC05Fa43DdE67) [Lido (ETH) on Ethereum Mainnet ](https://etherscan.io/address/0x2c2f0ffbfa1b8b9c85400f1726e1bc0892e63d9f) [MakerDAO sDAI (USDC) on Ethereum Mainnet](https://etherscan.io/address/0xD8785CDae9Ec24b8796c45E3a2D0F7b03194F826) [Curve Finance (EURC) on Ethereum Mainnet](https://etherscan.io/address/0xc2d4d9070236bA4ffefd7cf565eb98d11bFeB8E1) ### Security and Audits The contracts are [audited by WeiChain](/audits), ensuring they meet high security and operational standards. This rigorous testing provides transparency and trust for users engaging with Return Finance's offerings, maintaining asset integrity and security across all interactions. # FAQ Frequently Asked Questions