On time payment
Payments for all projects on the paltform have been on time every time with no defaults.
Returns Calculator
How are your returns calculated?
In this section, we will help you understand how the returns for projects and pools you invest in are calculated. pysé's platform is the first one on web3 to provide a reduced principal investment product. An investment that returns both principal and interest each month to your wallet thereby helping with principal loss risk and higher monthly cashflows.
Reduced principal / EMI return model
Assets on pysé are essentially depreciating assets that lose value over time with performance degradation. This means that, unlike real estate projects, the physical asset you invest in loses its value over time. So how do we model the returns for an asset class like this? Simple. We use the same formula banks have been using for more than 100 years to calculate their models. The EMI formula.
Let's do this with a simple example -
Imagine you are a bank that offers loans to individuals to buy cars.
A creditworthy individual Steve comes to you asking for a loan of $30,000 to buy a brand-new car
You are willing to offer the loan for a tenure of 3 years at an interest rate of 5% P.A. The car though in the name of Steve is hypothecated to you. This means if he were to default on any of his payments, the car is yours.
So Steve pays an EMI of $900 every month ( you can use this EMI calculator website to calculate monthly EMIs as per the formula ) to you for the next 36 months. And at the end of the 36th month, the vehicle is transferred to Steve, with no strings attached.
So as a bank, you make $900 each month for 36 months ie:- $900x36 = $32,400. This means that for an investment of $30,000, you made as a bank you recovered your principal of $30,000 and made an interest income of $2,400! What’s magical, is that all Steve did was pay a fixed amount each month for you to recover your principal and interest.
It's as simple as that. Because Steve pays principal and interest each month, you recover your investment throughout the tenure of the investment along with the interest.
How does the EMI model fit into the pysé story?
Similar to how banks calculate returns using EMI (Equated Monthly Installments), our platform, Pysé, employs the same methodology to determine the returns of the investment pools you participate in. Each pool offers a fixed rate of return and has a predetermined duration. When you invest in a pool, you receive a fixed monthly return that encompasses both the principal and interest.
The attached file illustrates a simple example to demonstrate how this works:
You invest $1000
In a pool with a duration of 3 years (36 months)
Yielding a 7% return
The document showcases the monthly returns you can expect, providing a breakdown of the interest and principal components of your returns. Additionally, it reveals the value of your investment in each month, considering that the principal is repaid incrementally on a monthly basis.
AAA+ clients
Majority of the clients we sign asset contracts with are AAA rated, creditworthy companies
Did you know that your monthly returns include both interest and principal ?
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