What is the difference between yielding and Premium locking?

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.

Premium Locking with SwissBorg

SwissBorg enables you to lock your CHSB 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 CHSB 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 daily return. Tokens locked for the Premium Account are not eligible for generating yield as they are not held in an Earn Wallet, and therefore do not provide a daily return. However, by locking CHSB 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• Tokens are locked for a minimum of 12 months when subscribing to a Premium Account, during which time they cannot be withdrawn or exchanged.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 Earn Wallets can be redeemed every 24 hours when the yield cycle is completed, at 8AM UTC.

• Token locking for Premium can only be done with SwissBorg's native token CHSB, while SwissBorg Earn has strategies available for various tokens listed in the app.

• For each Premium account type, there is a specific amount of CHSB that needs to be locked – for example 2,000 CHSB for Community Premium and 20,000 CHSB 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 CHSB gives you Premium status. Adding the necessary amount of tokens to your CHSB Earn wallet does not upgrade your account, as cool as that would be.