For many digital asset holders, funds typically fall into one of three categories:
- Kept on an exchange account: Convenient for spending, but assets are custodial. Security and transparency can be concerns, and balances usually generate no yield.
- Stored idle in a wallet: Secure, but the assets sit passively, missing potential on-chain yield opportunities.
- Deposited into DeFi protocols: Yield is possible, but the process is complex, and funds may not be accessible for everyday spending.
These trade-offs often leave users balancing security, yield, and liquidity. The BenPay On-Chain Yield Card was created to solve this challenge, allowing users to earn on-chain yield while keeping funds instantly spendable — all without sacrificing self-custody security.
The Three Core Challenges for Digital Asset Holders
1. Idle Assets Cannot Earn Yield
Stablecoins are often used to preserve value, but leaving them idle in wallets or exchange accounts prevents participation in on-chain yield protocols. Assets are “preserved,” not actively working.
2. High Barriers to DeFi Participation
Earning yield through DeFi requires knowledge of wallets, private keys, network switching, protocol selection, gas fees, and more. A small mistake can result in irreversible loss, discouraging many users.
3. Liquidity Fragmentation
Even when funds are in DeFi, they are often locked in protocols. Redeeming for everyday spending can take time, incur fees, and be inconvenient.
How the BenPay On-Chain Yield Card Works
The On-Chain Yield Card was designed to combine security, yield, and usability into a single product.
1. Automatic Asset Growth with Clear Earnings
Once users enable the “Earn” feature, their card account balance participates in selected, market-validated DeFi protocols through the BenPay DeFi Earn System. Yield is settled daily and credited automatically, starting at 3% APY (based on real-time on-chain returns). Funds remain available for everyday spending.
2. No DeFi Complexity for Users
Users don’t need to compare protocols, calculate gas fees, or manually reinvest. A single tap to enable “Earn” triggers the full process automatically. The experience is similar to a traditional payment product while retaining on-chain benefits.
3. Instant Usability While Earning Yield
Funds are never locked. Users can spend from their card balance at any time, allowing a seamless flow between earning and spending.
4. Security through Self-Custody
The card strictly follows self-custody principles: users retain full control of their private keys, and BenPay never holds assets. Only selected blue-chip DeFi protocols are used to balance yield with minimal risk. Learn more about the underlying infrastructure on BenFen Chain.
5. Incentives to Enhance Utility
To encourage adoption, BenPay offers:
- Free card issuance for the first 200 users
- Referral rewards ($2 USD per successful referral)
- Deposit rewards during the campaign (top 10 users receive 3 USDT airdrop)
A Three-Layer Account Architecture
The card leverages a unique three-layer system:
- Self-Custodial Wallet on BenFen Chain: Full control over private keys and asset ownership.
- Card Account Balance: Automatically participates in DeFi protocols once “Earn” is enabled.
- Card Balance: Instantly spendable globally.
This structure maximizes capital efficiency by combining security, yield, and liquidity.
Use Cases
- Higher Capital Efficiency: Earn yield while keeping assets ready for daily spending.
- Cash Flow Tool for Long-Term Holders: Allocate a portion of holdings to cover daily needs without compromising asset growth.
- Easy On-Ramp for DeFi Beginners: Experience on-chain yield with minimal complexity.
Why This Matters
The BenPay On-Chain Yield Card reflects a broader shift in Web3 product design:
- Complexity stays in the background: Users don’t need to understand DeFi mechanics.
- Simplicity without compromising core values: Assets remain self-custodied and fully transparent on-chain.
- Direct integration with real life: Spend digital assets directly without converting to fiat first.
This approach makes digital assets more usable while still enabling them to generate on-chain yield.
Conclusion
In traditional finance, funds are either spent or idle. The BenPay On-Chain Yield Card allows every asset to work while remaining accessible, improving capital efficiency and daily usability. Users can now manage funds seamlessly within a single account, earning while they spend.
Learn more:
- Official Press Release via Notified: View on GlobeNewswire
Disclaimer: The content is for informational purposes only and does not constitute investment advice. Digital assets carry risk, and users should make independent judgments before participating in on-chain yield activities.