Yielding and locking tokens are two methods of using your crypto assets in the SwissBorg app; one is for earning daily returns, and the other for elevating to Premium status with its benefits, both available to SwissBorg app users. Due to the high level of similarity between the two, we felt it was important to make it clear.
To help you better understand yielding and locking tokens for Premium, and the key differences between them, let's take a closer look at them.
Earning yield with SwissBorg
With SwissBorg Earn you can put your cryptos to work, earning yield every day by holding a balance in any earn-eligible crypto assets and holding (a portion of) the balance in a SwissBorg Earn wallet.
Your yield is paid out every 24 hours, meaning that you are not only earning a return on your balance, but also on the yield you’ve already acquired. This does not apply to pre-subscription or Alpha vaults*.
Premium Locking with SwissBorg
SwissBorg enables you to lock your BORG tokens for a predefined period of 12 months in order to upgrade from a Standard to a Premium account, and enjoy benefits such as a yield boost, voting rights and lower exchange fees.
When you lock your tokens for Premium subscription, they are still in your account, but you can't exchange or withdraw them for a duration of 12 months.
After this 12 month period has passed, you will still need to keep the BORG balance locked if you want to keep your Premium account. You will be free to exchange or withdraw your now unlocked tokens, but bear in mind that doing so will take you from a Premium account back to a Standard one.
Let’s look at the key differences between Yielding versus Locking:
Only tokens held in Earn Wallets generate a return. Tokens locked for the Premium Account are not eligible for generating yield as they are not held in an Earn Wallet. However, by locking BORG and becoming a Premium user you do receive a yield boost, which means that you earn a higher yield on the tokens you are holding in Earn Wallets.
Tokens are locked for a minimum of 12 months when subscribing to a Premium Account, during which time they cannot be withdrawn or exchanged. Funds that are held in most Earn Core Wallets can be redeemed every 24 hours when the yield cycle is completed, at 8AM UTC. Funds held in Earn vaults with a lock-up period are locked until the end of the predefined lock-up period, which can be found in the stratregy details.
Token locking for Premium can only be done with SwissBorg's native token BORG, while SwissBorg Earn has strategies available for various tokens listed in the app.
For each Premium account type, there is a specific amount of BORG that needs to be locked – for example 2,000 BORG for Community Premium and 20,000 BORG for Generation Premium. That being said, SwissBorg Earn can be activated for as little as 10 EUR.
An important thing to note about locking funds for Premium membership:
Only locking BORG and following the Premium subscription steps gives you Premium status. Simply holding the required BORG balance won't make you Premium automatically.