Haru: There is a better way to HODL

The Coin Interest Rate Team had a chance to ask a variety of questions to the Haru Invest team, so we could help our readers understand the service more in-depth. We asked questions ranging from how they generate yield, questions about their community size, security options, and what other improvements they are making to their platform and service.

Haru Invest QA Graphic

Here is our Q&A with Haru Invest!

Can you give us a bit more insight into how Haru Invest is able to pay market-leading rates for supported crypto?

We are built different. This has been the case from Day 1 – while other CeFi companies pay earnings from crypto loans, we generate and distribute earnings through algorithmic trading. Haru Invest utilizes risk-averse strategies based on mid to high-frequency algorithmic trading that focuses on absolute gains on BTC, ETH and USDT (the top 3 crypto in trade volume).

Assets are directly managed by our in-house trading team with over 5 years of experience in algorithmic trading, with know-how on various market conditions, even in the bear market. We do not trade any cryptocurrencies with stable structure or of low trade volume as trade volume is critical to our trading strategies. Hence, the collapse of UST and stETH depeg did not impact us in any way.

Haru Invest’s trading strategies are based on arbitrage. Having started with arbitrage trading between spot crypto exchanges, we have developed and tested hundreds of strategies – from exploiting the price gap between spot exchanges, to using the basis gap and funding fee differences between crypto derivatives exchanges, as well as hedging funding fee of the crypto derivatives exchange at spot exchanges.

We are constantly refining and testing new strategies to generate stable earnings regardless of market conditions. We aren’t able to fully disclose all our strategies as they are our very own know-how and assets.

In terms of user base, what numbers can you share with us (number of active users, approx. size of assets under management)?

In 3 years of operation, we are currently providing our services to users from over 140 countries who trust us with their digital assets. To date, we have reached over $2 billion in total transaction volume and have paid out earnings over 4.1 million times.

We have never missed a single withdrawal nor earnings payout, and that’s why about 87.5% of our users continue to use Haru Invest after first experiencing our services. For more information, visit haruinvest.com/trust.

Concerns users have, especially during major market volatility, is access to deposited funds, especially in light of Celsius Network’s chapter 11/bankruptcy. What has Haru done to ensure liquidity or prevent these issues?

First of all, Haru Invest does not allocate any crypto assets in other DeFi or CeFi platforms and we will continue to do so. We have never relied on Anchor Protocol, Lido, nor any stETH leverages. All your assets are managed directly by our strong in-house trading team and trusted global partners who have gone through thorough due diligence (and are subject to weekly and monthly compliance checks).

Also, the fact that we are based on locked-up products ensures stability of our operations. With the majority of the assets entrusted in lockup products and all with varying ending period, we don’t face any sudden withdrawals and liquidation issues.

Haru Invest operates crypto assets that belong entirely to you. We only have the rights to manage them on your behalf. Haru Invest users will get their crypto assets back with high priority than all others including equity investors.

Insurance with BitGo is a nice feature. Can you help us understand precisely what it does and does not cover?

We currently use Bitgo’s self-managed custody service for the purpose of private key storage in connection with our cold wallet infrastructure. This covers any security breach of the private key we store in our cold wallet. Further to this, we are reviewing additional security-related insurance policies with other insurers available in the market and will update you the progress along the way.

Using Haru Invest almost daily, we’ve seen some nice UI updates over the past few weeks. Can you tell us about your design and product team and maybe some of the overall vision?

Our product and design team is growing. We have on-boarded and are on-boarding many new talents from various fields with a lot of experience – traditional finance, travel, e-commerce, messaging apps and gaming, just to name a few.

One of our core values is “Empower everyone.” We are here to create new opportunities that lead to ultimate financial freedom – a crypto investment/management platform that anyone can use. This value is very much instilled in our product team and all releases and features are reviewed from user experience perspectives.

Can you tell us more about Block Crafters, your parent company?

Haru Invest was launched as a digital asset management platform by Block Crafters.

Block Crafters believe in the potential of blockchain and cryptocurrency as the game-changers in the future of finance. Based in Seoul and Singapore, Block Crafters has a strong track record in crypto fund management as well as acceleration and consulting on crypto/blockchain projects and startups. Block Crafters also operates a blockchain media platform called D.Street.

Are there any app updates or new features coming soon that you are excited about and can preview or share with our community?

By the time this article is published, we will have launched a special feature that everyone has been looking forward to— Freeze Marketplace where Earn Plus products can be traded between users. Basically, users can “Freeze” their Earn Plus products into “Frost” and trade Frosts. You can “Melt” a “Frost” to turn it back into an Earn Plus product as well. Find out for yourself by downloading the Haru Invest app.

Couple of WIPs for later in the year include :

  • Security Features – safety of our members’ assets are our utmost priority. We plan to roll out additional security features that will improve security and further protect assets.
  • New Cryptocurrency – we are currently reviewing a couple of cryptocurrencies, both from product (user experience) and trading (stable earning) perspectives. We won’t be able to share what they are today but stay tuned for updates!

Q&A Highlights (TLDR;)

How is Haru Invest able to pay market-leading rates?

While other CeFi companies pay earnings from crypto loans, Haru Invest generates and distributes earnings through algorithmic trading.

How big is the user base for Haru Invest?

As of July 2022, Haru Invest provides services to digital asset holders across 140+ countries and has paid-out earnings over 4.1 million times, with over $2 billion in total transaction volume.

What has Haru done to ensure liquidity during major market volatility?

Haru Invest does not allocate crypto assets to other DeFi or CeFi platforms. Haru’s strong in-house trading team and trusted global partners manage all digital assets directly.

Haru Invest operates crypto assets that belong entirely to you, only having the rights to manage them on your behalf. Haru Invest users will get their crypto assets back with high priority than all others, including equity investors.

What is (and is not) covered under BitGo Insurance?

Haru Invest currently uses Bitgo’s self-managed custody service for the purpose of private key storage in connection with its cold wallet infrastructure. This covers any security breach of the private key Haru stores in its cold wallet.

What is the overall vision for Haru Invest?

One of Haru Invest’s core values is “Empower everyone.” Haru’s vision is to create new opportunities that lead to ultimate financial freedom – a crypto investment/management platform that anyone can use.

Who is Block Crafters, and how are they tied to Haru Invest?

Haru Invest was launched as a digital asset management platform by Block Crafters.

What are the latest features of Haru Invest?

In July 2022, Haru Invest launched Freeze Marketplace, where Earn Plus products can be traded between users. Users can “Freeze” their Earn Plus products into “Frost” and trade Frosts. They can also “Melt” a “Frost” to turn it back into an Earn Plus product.

We wish to thank Haru Invest for taking the time to answer our questions so thoroughly. If you have any questions yourself, please add your comments below.

See also: Crypto gaming tips