Cryptocurrency experts predict that HedgePay pricing will breach the psychological barrier of US$1.00 very soon. The same press release states that HedgePay will be launching HedgeFi mechanism, HedgePay Exchange, Staking Rewards, Bounty Rewards, and BUSD Rewards features.
What is HedgePay?
In proper perspective, HedgePay is a one-step investment towards financial freedom. It is a DeFi-powered income generator working within the HedgeFi Ecosystem to improve the capital of the HedgeFi Fund. The interest generated from the proceeds is delivered to claimable rewards for the investor. It follows a three-fold campaign comprising security, income generation, and accessibility.
The cryptocurrency ecosystem has its challenges making investors and traders apprehensive. However, the HedgePay protocol offers practical solutions and creates an environment providing accessible, lucrative, and safe avenues for cryptocurrency-based investments.
How does the HedgePay protocol function?
The HedgePay protocol is similar in many ways to the traditional hedge fund as it uses a specific proportion of every transaction as seed capital for different investment strategies. The HedgeFi Fund manages all these strategies, directs the capital streams, and collects profits. The rewards generated from these strategies return to the investors and are utilized for funding new investments in the form of a feedback loop.
HedgePay – utilizes the Blockchain for securing investment capital flow.
The previous article dealt with HedgePay as a rewards-generating platform decoupling the rewards stream from the actual transactional volume. Similarly, this article focuses on how the protocol addresses the sensitive issue of securing the funds flowing into the system.
HedgePay security protocols center on smart contracts to secure transactions on the Blockchain. These smart contracts built on a modular and secure architecture provide the highest levels of security, keep its client’s funds safe, and eliminate intermediaries. Furthermore, the intuitive implementation and design allow mitigation of existing and future obstacles to enhance security levels. Besides, data encryption at every stage keeps it safe from third-party access.
HedgePay has set up rigorous safety mechanisms to prevent malicious actors from interfering with the intended fund flow system. Access to managing capital is strict, ensuring that funds cannot flow outside the system without the transparent multi-party approval process.
Investment strategies work in on-chain and off-chain environments. Therefore, the HedgePay protocol has been designed to mitigate security vulnerabilities in both environments.
The Multi-signature Wallet
HedgePay believes in prioritizing user security over everything else. Therefore, it uses the GNOSIS Safe Multi-signature wallet to secure all funds and contracts on HedgePay. GNOSIS has had a reputation for obtaining blockchain financial products since 2016. As of date, it ensures around $1 billion worth of digital assets in more than 5000 deployed wallets.
The HedgePay design allows fund flow between its strategies. Therefore, the HedgeFi Fund manager can move capital between plans but not withdraw funds to external wallets or addresses. All transactions targeting transfer to external wallets require approval through the multi-sign wallet.
The GNOSIS Safe provides security and transparency to give HedgePay investors a clear insight into potential malicious transactions that can occur. Hence, they get sufficient time to react to possible fraud.
On-Chain capital constitutes funds that do not leave the decentralized blockchain space. Instead, HedgePay managers manage these funds using smart contracts that allow the execution of a specific set of operations. HedgePay Fund managers can allocate funds to investment strategies as capital, liquidate them, and move to the HedgePay multi-signature vault. In addition, on-chain security allows the fund managers to execute only these transactions.
On-Chain Security
HedgePay On-chain security forbids transferring funds to addresses and contacts not under the HedgeFi Fund management unless the multi-signature wallet approves the transaction. Thus, it enhances the investor’s investment’s safety and prevents fraud.
Off-Chain Security
The prime distinguishing feature of Blockchain technology is its decentralization. While eliminating supervisory controls and centralized regulations, Blockchain’s decentralized environment offers excellent space for securing and verifying digital assets. As a result, it provides tremendous potential for many investment opportunities. While the conventional centralized instruments do not have the same levels of transparency and security as decentralized investments, no one can ignore the potential value these instruments offer.
HedgePay’s Off-chain security leverages both centralized and decentralized resources to generate rewards for its investors. The protocol bridges these worlds using flexible investment strategies that allow off-chain fund transfers but strictly to predestined outlet addresses. Usually, these addresses constitute exchange deposit addresses, centralized staking pools, or centralized lending pools.
As a result, the funds temporarily exit the on-chain system using the investment strategy bridge. However, all such strategies require careful auditing and screening. Besides, it can interact only under high-level security clearance. These funds are off chain, allowing us to leverage various security features provided by crypto service providers and ensure that malicious actors do not access them.
Here are some examples of such features:
a. Trading sub-account
b. Limiting accounts to using trading features alone
c. Limiting withdrawals to specific addresses
Final Thoughts
HedgePay believes that financial freedom is possible only when investments generate continuous income streams throughout their tenure. While the HedgeFi Risk-reduction algorithm ensures a flexible and consistent cash flow, HedgePay implements the highest cybersecurity practices to protect these investments. This architecture includes leveraging the GNOSIS safe multi-sig wallet, on-chain, and off-chain security protocols. These stringent security measures make HedgePay one of the most secure crypto platforms for investment.
HedgePay understands that cybersecurity is a delicate subject that requires constant updating. While Blockchain technology has improved the cybersecurity space, human interactions introduce an element of vulnerability that cybercriminals exploit. HedgePay endeavors to provide top-class security while simultaneously ensuring the transparency of its user’s investments.
For further details, potential users must visit the website.
Media ContactCompany Name: HedgePayContact Person: Media RelationsEmail: Send EmailCountry: United StatesWebsite: https://hedgepay.org/
