Q: How do I start making money with Zengo Savings?
A: You can start earning in just a few taps by following these simple steps:
- Pick which asset you want to earn. You’ll find the available interest rates (APYs) on the “Earn” screen in the app to help you decide.
- Tap on the asset. If you don’t own any, we’ve made it easy to buy or receive.
- Tap the Deposit button and choose how much you’d like to allocate to Savings.
- Tap “Confirm”
That’s it! You’ve just started saving. Now just sit back and watch your portfolio grow.”
Q: What are the risks associated with Zengo Savings?
A: The answer depends on whether you are lending or staking your crypto.
Lending: We’ve partnered with Nexo, one of the world’s largest and most trusted lending institutions in digital finance. Nexo is licensed, audited, and insured, but because lending involves sending your crypto to a 3rd party, there are certain counterparty risks. We recommend doing your own research into the various aspects of counterparty risk before making any financial decisions. Learn more about Nexo here.
Staking: Since you don’t need to part with your assets in order to delegate them, your funds always remain in the safety of your Zengo wallet. This means that validators do not have access to your funds, and you earn the rewards with no counterparty risk.
Q: How is my APY interest generated?
A: Your APY is not generated by yield farming or staking, but rather by lending your cryptoassets to our partner Nexo. Nexo is licensed, audited, and insured, and maintains high levels of collateral to limit risks. Learn more about Nexo’s custody and insurance process here.
Q: Is there a minimum or maximum deposit amount?
A: For Nexo, there is a minimum amount required for deposits per asset. This amount changes over time and is best viewed in the app. There is no maximum deposit.
For Tezos, the minimum amount to activate staking is 1 XTZ.
Q: Is there a minimum or maximum withdrawal amount?
A: For Nexo, there is a minimum amount required for withdrawals per asset. This amount changes over time and is best viewed in the app. The maximum daily withdrawal limit is the equivalent of $20,000 per user.
Q: How do I deposit and withdraw?
A: There are two types of screens that you might encounter when depositing and withdrawing:
Deposit and withdrawal screen: To deposit: 1) go to the Earn screen 2) select the asset you would like to deposit into savings 3) choose the amount and 4) confirm the transaction. To withdraw, you can select the asset from your Home screen and continue to withdraw, or go to the Earn page, select the relevant token, and withdraw from there.
Activation screen: Staking assets, namely Tezos for now, have an “Activate” button instead of a deposit button because you can’t choose a portion of your assets to stake — it’s all or nothing. You simply need to activate your savings once per asset and your wallet remains activated forever. There’s no downside to this since the funds never leave your Zengo wallet and are always accessible and liquid. If you send them out of your Zengo wallet, you’ll simply stop earning the rewards on that amount.
Q: Where can I see my savings deposits and interest earned?
A: To see your savings deposits and interest earned, just go to the Home screen and scroll to the bottom section. All active deposits are presented there under a section called “Earn”. To see your interest earned, simply look below Lifetime earnings at the bottom of your Home screen.
Staking deposits (e.g. for Tezos), however, will appear in the “Wallet” section above because those funds are always liquid and never leave your wallet.
Q: When do I get paid interest and rewards?
A: For lending in Nexo, your interest accrues in kind, once per day, and gets added to your lending balance automatically, so you can earn compound interest. The first interest payment after your initial deposit will be paid no earlier than 24 hours after the deposit, between 7:00-8:00am CET on the following day.
For staking, there’s an initial waiting period of approximately 30 days before receiving your first reward payment. After that, you should receive a reward payment from the validator approximately every 3 days which gets deposited directly into your wallet.
Q: Are my funds liquid while in Savings?
A: Your funds are always accessible from your Zengo wallet while in Savings. All transactions are on-chain and only you have the ability to move your crypto. That said, there are slight differences between lending and staking.
Funds that you’ve lent to Nexo are stored with Nexo so you first need to withdraw them to your Zengo wallet before sending them elsewhere.
On the other hand, funds that are delegated to staking are never sent out of your wallet. You only delegate your voting rights for the asset, not the asset itself. So you don’t need to do any special withdrawal action to be able to send them out of your Zengo wallet.
Q: Are there any fees associated with Savings?
A: The only fees you need to pay are network fees (not paid to Zengo but to the blockchain networks) to complete your deposit and withdraw transactions or to activate staking.
*For lending with Nexo, you get one free withdrawal per calendar month which means that the network fees are waived.