SparkFi — Earn Passive Income Without Trading

Money Prism
4 min readJan 27, 2023

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Hedge funds are firms that can collect funds from customers and invest the money in various investment models to get profit. The method used by hedge fund firms is that they use the funds they have and collect from customers to be used for investment in the market and later they will share the profits with their customers in the form of returns that they have promised at the beginning. People at hedge fund firms are usually professionals who already have investment portfolios that promise several investment models and then they will offer their portfolios to the public and if they have succeeded in raising funds they will reinvest according to their strategy. So investing in hedge funds is perfect for those who want to invest but don’t want to bother with trading.

SparkFi: Stablecoin as Yield

The method used by hedge fund firms by raising public funds and using them in potentially profitable investment instruments is very interesting to explore. And because of that, SparkFi copied this model and combined it with the cryptocurrency model to be able to offer users passive income in the form of stablecoins in their wallets. What SparkFi does is offer their tokens to users, and then when capital is raised SparkFi will invest them in various markets such as FOREX, Stocks, Commodities, Metals, Cryptocurrencies, etc to generate yields. The yield obtained by SparkFi will later be converted to stablecoins and distributed to users in the form of USDT and BUSD which are sent directly to the user’s wallet. The method used by SparkFi is very good because it raises funds from the public and will use them for more profitable investments and share them with investors.

Competitive Advantage

By being a platform that is like a hedge fund that invests funds in profitable sectors and is supported by blockchain technology, it will have a competitive advantage compared to traditional platforms which are complicated and sometimes difficult for users to use. SparkFi will have a competitive advantage which makes it one of the most profitable yield programs and easy for users to use. And other competitive advantages of SparkFi can be seen from the various features it offers:

  • Varied APY for users: SparkFi offers varied APY to users which will provide a higher return on investment.
  • Smart staking: SparkFi provides easy staking for users to earn USDT and BUSD passive income.
  • Deflationary system: SparkFi designed a 1% fee on each and every transfer that is burned automatically to reduce supply and increase token value.

SparkFi Market

Not many people can trade the markets, whether it’s time constraints or their lack of knowledge. SparkFi sees this as the potential to be able to offer a staking service that will allow investors to earn returns without needing to trade or anything else. SparkFi will manage the capital that has been raised in various investment instruments. Later investment professionals will manage this capital and when it gets profit, SparkFi will convert this yield to stablecoins and will distribute it fairly to investors.

Token Sales

It is planned that $SPARK Tokens will be sold through a token sale program which will be held in the future. By participating in this token sale program, users will be able to get $SPARK Tokens at a lower price than before the token was launched on CEX/DEX and this will benefit users who invest early. To participate in this token sale program, users can read more complete details on the website and see more fully what requirements users must meet to buy this token. And it sure will be very easy to buy these tokens.

Summarising

SparkFi copied the method used by hedge fund firms to be able to raise funds and manage them independently in various investment instruments and share the profits with SparkFi investors. SparkFi is designed to offer users in the form of SPARK tokens where when investors stake this token they will get rewards in the form of stablecoins with attractive APY. The strategy that will be used by SparkFi is to manage the capital that has been raised in various investment instruments and then share the profits fairly with users. So with what SparkFi has to offer, users will get convenience in terms of more profitable investments.

Important Links

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Money Prism

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