Roadmap Revamp #2: Deposit Cancels
Our first Roadmap Revamp article introduced the option of Stable Deposits. Stable Deposits will provide users with another deposit option to improve the stability of their principal value (based on USD), while still earning interest. Our aim with Stable Deposits is to minimize the impacts of volatile crypto market price swings.
Our second Roadmap Revamp also provides users more flexibility to adjust to the impacts of a volatile crypto market price swing by allowing a deposit to be canceled. Yes, cancel your deposits!
As of now, you cannot cancel a deposit until the lock period is over. This makes users wary of depositing for longer periods for multiple reasons:
1. Price volatility
2. You are not able to sell in case of a huge pump or in case you need money
3. The interest paid is too low to offset all the risk of not having access to your funds
By adding the option to cancel (or early withdraw) your deposit, we increase the flexibility for users to adjust to not only market conditions, but life changes. Now that’s a sweet deal!
Testing has already confirmed that we can offer users the ability to cancel deposits and we are in the process of defining the early withdrawal rules (what exactly happens when users cancel deposits early).
As it stands, we are considering 2 options during testing (below are some examples):
Options 1. The depositor gets the full deposit and no interest at the time of the cancellation.
Example. A user deposits 5000 CCX for 1 year and interest is 4%. The user would be due to get 5000 + 200 CCX at the term-end. Instead, let's say the user cancels at 6 months (so half the lock term). The user would get 5000 + 0 CCX. The user would forfeit the interest as a penalty for early withdrawal.
Option 2. The depositor only gets a portion of the deposit and no interest at the time of the cancellation.
Example. A user deposits 5000 CCX for 1 year and interest is 4%. The user would de due to get 5000 + 200 CCX at the term-end. Instead, let's say the user cancels at 6 months (so half the lock term). The user would get 2500 + 0 CCX. The user would forfeit a portion of the principal and the interest as a penalty for early withdrawal.
Of course, these options and examples are just for testing purposes (used as hypotheticals).
In the end, our goal is to incentivize deposits to entice you to feel comfortable depositing, but if you need to cancel your deposit you can. We just have to determine an equitable penalty. Maybe, the later you cancel the lower the penalty?
For now, we are working on the details of how the integration of canceling deposits will work in the end, but the team is very excited to offer this new feature to allow users more flexibility to adjust to both market conditions and life changes.
Thank you for reading our second article in the series of roadmap revamps!
Keep calm and Conceal your funds.