April 1, 2022

Understanding Debut: How do we grow your money?

Understanding Debut: How do we grow your money?

Debut uses DeFi to cut the middleman, make finance more inclusive, secure and transparent and put more back in customers' pockets.

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Understanding Debut: How do we grow your money?

Let's start from the start

Seeing is believing. Our biggest champions are our early adopters who’ve used Debut to get a 10% targeted annual return on their money. These users saw for themselves how it takes less than five minutes to sign up; there aren’t any lockups or withdrawal fees; and you can put in as little as $10-$100 to get started. Sometimes you have to say hi to the new kid on the block to discover they’re your new best friend.

And yet, with anything new, sometimes you want to know more about what you’re getting yourself into - especially when it comes to money and a service that promises to help you get better at fight inflation. We get it. One of our core values at Debut is transparency. We don't hide things from you, and we want to tell you exactly how we make money and how we invest your dollars to generate a great return.

Getting the basics sorted

The mechanics of a bank business are relatively straight forward. You deposit your money with the bank to keep it safe so you don’t have to carry it around or store it in your sock drawer. Banks loan that money in mortgages, small business loans, credit cards and more, and charge interest - from 4% on a mortgage to 30% for a credit card.


The net interest margin is the difference between what they earn as interest and what they pay you back on your deposits. That was all well and good back in the day. But now, when interest rates are as low as 0.05-0.5% and withdrawal penalties as high as ever, there’s got to be a better way. There always is.

Debut makes your money work for you, and the profits on your money stay yours. We don't charge any fees, until we generate returns for you. We keep the lights on by taking a small percentage of the generated returns before we pass the rest back to you, which means we get paid when you win. There are no lockups or withdrawal fees, but there are daily payouts. 

To put it bluntly, we’re not a bank. Banks are built to maximise their profits, not to benefit consumers. Banks are up against bureaucracies, overheads, massive teams and physical branches.

Debut exploits digital technology to the fullest for the benefit of its customers. Unlike banks, we make profits through a rapidly growing financial technology infrastructure called Decentralised Finance, or DeFi for short. Also with Debut, the customer comes first and we keep costs low so you get maximum returns.

What is DeFi?

With a global industry worth more than 200 billion (NZD, defilama.com, March 1st 2022), DeFi is the next evolution for banking and finance that’s transforming the industry for good. 

The peer to peer DeFi system, enabled by blockchain technology, isn’t controlled by a centralised organisation, there’s no need for heavy manpower (which is prone to errors), to manage financial contracts, bricks and mortar branches or premium offices. With blockchain, the financial arrangements are managed by technology and are transparent and open. Blockchain is considered a foundational technology to build a new internet of money. DeFi makes finance more inclusive, secure and transparent and helps bring profits back to customers.

The returns in DeFi are generated through entirely digitised loans and other digital asset transactions in a secure way. For example, every single loan is secured by digital assets that are, on average, 125% of the loan value. These assets are automatically sold if they lose value or if there’s any chance the loan won't be paid back in full. This ensures original investments can be safely returned, regardless of what happens to the loan.

Lending is just one financial tool that DeFi offers to generate income. The technology is evolving every day to provide improved, more transparent versions of financial products that have been around for decades. But this time, these are more accessible than ever, and DeFi helps put more money back in the customer's pockets.

Aren't digital assets pretty risky? Aka, will I lose money?

The digital assets you’re most likely to have heard of are also the most volatile. We’re talking cryptocurrencies that make headlines weekly, such as Bitcoin or Ethereum. But the advent of stablecoins is a different story. 

Stablecoins are digital currency directly linked to the value of a real world currency such as the NZ or US Dollar. In other words, they use a more stable asset as a basis for value. Because of this, they don’t experience the ups and downs of other digital assets and are designed to keep a consistent value of your money. See our Risk Statement for further information on Stablecoins.

Debut applies professional portfolio and risk management techniques to digital assets to minimise cryptocurrency’s typical ups and downs.

On top of this, to ensure your money is safeguarded, every single loan is secured by digital assets that are automatically sold if they lose value or if there’s a chance the loan won't be paid back in full.

Okay, but isn’t technology risky?

Technology is key to all the benefits of Debut, but all tech comes with some risks. Although it's very unlikely, there’s a chance that the Smart Contract (such as one governing a lending-borrowing agreement) behind a DeFi application breaks due to a software bug. We mitigate this by using audited DeFi applications and consistently reviewing the health of these applications. Debut only uses the most qualified, trusted and reliable DeFi applications. One example of this is Compound Labs, which launched one of the biggest DeFi lending platforms. 

Part of our customer-first policy means we have incredibly high auditing standards for selecting these platforms, and that we also implement tools to monitor their performance continuously. Even so, if a partner platform suffers a security breach or loss, you may suffer a loss of some or all of your account balance. To protect against risks such as this and lessen the fallout, we’ve invested in DeFi insurance for all our investments.

To build our app, we’ve tapped the minds of New Zealand's most capable software engineers who have experience in creating highly secure banking and government apps. We’ve also tested and audited the app with a third party based in NZ that specialises in penetration testing and finding vulnerabilities.

We have established and are maintaining sufficient processes that keep consumers’ best interests at heart.

So what’s the catch?

Debut is what happens when you're 100% committed to finding a better way. We use the latest technology that isn't held back by the inefficiencies and outdated methods. We put our customers first to create a product that's as close to a no-brainer as possible.

And, because of that, it can sound too good to be true. That's why we encourage people to start small so they can understand how it works first hand, and see real returns on their money. Of course, like all investments, we encourage everyone to diversify their assets, and always keep their eggs in multiple baskets.

If you do have excess funds gathering dust, now’s the time to see for yourself the power of DeFi.

To get started with Debut we have three simple investment options:

  • Stack: Targeted returns - 5%, No min deposit
  • Build: Targeted returns - 7%, $3K min deposit
  • Boost: Targeted returns - 10%, $5K min deposit

See our Risk Statement for more information, review the investment options and find what works for you.

It takes less than five minutes to set up, with apps on the App Store and Google Play so you can stay up to date.

One more note from us

Like most investments, returns are not guaranteed. There is a risk you may lose some or all of the money invested. Any information we provide is general only and not regulated financial advice for the purposes of the Financial Markets Conduct Act 2013.

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