How to Achieve Both Returns and Liquidity? An Analysis of Gate Finance's Fund Allocation Logic

The current cryptocurrency market shows a pattern of oscillation and consolidation. According to Gate Market Data, as of June 11, 2026, the price of Bitcoin is $61,564.8, with a decline of 10.73% over the past 30 days; Ethereum's price is $1,623.30, down 5.70% over the same period. Overall market sentiment remains neutral. During this phase where market direction is still unclear, common issues faced by crypto asset holders are: on one hand, the desire to retain the flexibility to trade at any time amid price fluctuations; on the other hand, the reluctance to let idle assets miss out on ongoing income opportunities. How to balance stable returns with liquidity has become a core consideration in Gate’s wealth management user allocation strategies.

Balancing Returns and Liquidity: Solutions for Holding Coins and Earning Interest

Within Gate’s product matrix, the “holding coins and earning interest” feature offers a passive income method that does not require locking assets. After users enable this feature with a single click, the system takes daily snapshots of eligible token holdings in spot or contract accounts, automatically calculating earnings based on average holdings, with daily payouts credited to the asset account. Throughout this process, assets remain fully liquid and can be used for trading, withdrawals, or transferred to other wealth management scenarios at any time.

The core advantage of this mechanism is zero operational threshold and low time cost. Users do not need to actively subscribe to wealth management products, choose lock-up periods, or repeatedly operate across multiple pages. Once enabled, eligible token holdings automatically enter the earnings calculation process, and payouts are also handled automatically by the system, settled daily and reinvested.

Currently, Gate’s “holding coins and earning interest” feature covers both spot and contract scenarios, supporting nearly 20 mainstream crypto assets including USDT, BTC, ETH, SOL, GT, FLR, and ATOM. The contract-based interest-earning mechanism is an industry-first innovation. Users only need to hold assets like USDT in their contract accounts and enable the feature; the interest-earning funds remain in the contract account and can be used normally for opening positions, adding margin, and other trading operations, with real-time availability and no restrictions.

For example, in USDT contract interest-earning, the minimum holding requirement is just 10 USDT. The system snapshots the USDT balance daily, calculates interest based on average holdings, and distributes it without affecting normal trading activities. This mechanism resolves a long-standing dilemma for contract users: maintaining sufficient margin to seize trading opportunities while also ensuring idle margin is not wasted.

Short-term Fund Allocation: Prioritizing Liquidity

Short-term funds generally refer to assets that may need to be used within a month, including daily trading reserves, waiting funds for entry opportunities, and idle assets with unclear purposes. For such funds, liquidity takes precedence over yield.

Gate’s flexible savings product (Yubi Bao) offers a straightforward option. Yubi Bao is a high-liquidity digital asset management tool supporting instant deposits and withdrawals, allowing funds to be quickly redeemed to spot accounts when needed, without impairing trading opportunities. As of June 2026, Yubi Bao’s USDT flexible savings can offer annualized yields up to 6.56%, with specific yields fluctuating dynamically based on market lending demand, enabling users to earn stable returns while maintaining fund liquidity.

For users uncomfortable with actively subscribing to wealth management products, the “holding coins and earning interest” feature provides another passive income option that requires no operation. Users simply need to hold their positions to earn returns, with no restrictions on fund flow. Both methods can be chosen flexibly based on personal preference, with the core goal of enabling short-term waiting funds to generate ongoing value and hedge the time cost of holding positions.

Medium-term Fund Allocation: Lock-up for Greater Certainty

Medium-term funds typically refer to idle assets with no clear usage plans within 7 to 90 days. The allocation logic here is: within an acceptable range of liquidity sacrifice, seek relatively higher annualized yields compared to flexible savings.

Gate’s fixed-term wealth management products offer options with lock-up periods of 7, 14, 30 days, etc. The key feature of fixed-term products is yield certainty—the annualized return is confirmed at the time of purchase and is unaffected by market lending demand fluctuations during the lock-up period. Upon maturity, principal and earnings are automatically credited to the spot account, eliminating the need for manual redemption.

In terms of yield, fixed-term wealth management significantly outperforms flexible products. Additionally, Gate has launched a VIP tiered yield mechanism for high-net-worth users, where higher VIP levels correspond to higher annualized yields on fixed-term products.

For funds with a clear idle period, fixed-term wealth management provides a predictable yield allocation plan. Users need to evaluate their own fund usage plans before purchasing to ensure no urgent withdrawals are needed during the lock-up.

It should be noted that the yields of “holding coins and earning interest” and flexible savings are not fixed; they are dynamically adjusted based on market lending demand and platform activity rules. Users can check the latest real-time annualized data on Gate’s relevant pages.

Long-term Holding Strategy: Let Time Amplify Returns

The core logic of long-term holding is to ignore short-term price fluctuations and focus on the accumulation of fundamental asset value. Within this framework, the power of compound interest is a key driver of asset appreciation.

Gate’s “holding coins and earning interest” and fixed-term wealth management both serve as effective amplifiers for long-term holdings. The interest earned daily from “holding coins and earning interest” is automatically added to the position, and the earnings from each snapshot continue to participate in interest calculation, creating a compounding effect.

For users choosing fixed-term wealth management, upon maturity, they can redeploy the principal and earnings into new fixed-term products, achieving continuous yield rolling. The key difference is that the yield of fixed-term products is locked in at purchase and unaffected by market lending fluctuations, offering higher certainty; whereas the yield of “holding coins and earning interest” fluctuates with the market, but asset liquidity remains unrestricted. Both paths have their advantages, and long-term holders can flexibly combine based on their liquidity needs and yield expectations.

USD1 “Holding Coins and Earning Interest” Campaign Analysis: Recent Case of Liquidity and High Returns

On June 9, 2026, Gate officially launched USD1 for “holding coins and earning interest” and started a limited-time wealth management activity. During the event, users holding USD1 in their asset accounts could automatically participate in the earnings plan, with a maximum annualized yield of 20%. The core parameters are as follows: minimum holding requirement of 1 USD1, no lock-up, assets can be used for trading or withdrawal at any time; the annualized yield will be dynamically adjusted daily based on the remaining reward budget and total effective USD1 holdings on the platform, with the updated rate announced around 14:00 (UTC+8) daily.

USD1 is a USD-pegged stablecoin issued by World Liberty Financial. Its core mechanism is fully collateralized by U.S. Treasury short-term bonds and cash equivalents, aiming to maintain a 1:1 peg with the US dollar. As a reserve-backed stablecoin, USD1 achieves the same price stability as traditional cash in digital form on the chain.

Regarding yield calculation, the system takes snapshots of USD1 balances hourly (24 times daily), covering trading accounts for the unified snapshot scope, and spot, perpetual, delivery, and options accounts for classic snapshot scope. The system calculates the average holdings based on these 24 snapshots, with earnings distributed to asset accounts the next day. The first interest payout will occur between 08:00 and 16:00 (UTC+8) the day after activation.

This activity provides a typical case: during the limited high-yield event, users can enjoy high annualized returns while maintaining full liquidity of assets, without having to choose between “high yield” and “liquidity.” After the event, the annualized rate will revert to normal levels, but the “holding coins and earning interest” feature remains available, allowing users to continue earning basic returns.

Sources of Returns Analysis

The income generated by Gate’s wealth management is not arbitrary but based on clear financial logic. Depending on the ultimate use of funds, returns mainly come from three categories of investments.

The first is the lending market. Assets deposited into flexible or fixed-term wealth management are lent out under strict risk control frameworks to qualified traders with leverage trading or liquidity needs. The interest paid by borrowers constitutes the primary source of user returns. Flexible wealth management yields fluctuate with supply and demand in the lending market, while fixed-term wealth management locks in the yield at purchase.

The second is structured derivatives. Products like interval smart gains and dual-currency investments are essentially options sold to counterparties, with the option premiums turning into wealth management income. The returns of such products depend on how well the underlying asset prices match the preset ranges.

The third is on-chain native yields, including staking rewards under proof-of-stake consensus mechanisms and transaction fee sharing and liquidity mining rewards generated by decentralized finance protocols. Some of the tokens in “holding coins and earning interest” derive their yields from these sources.

Understanding the sources of returns helps establish reasonable expectations. Different underlying investment types directly influence their risk-return profiles: flexible wealth management yields fluctuate with market supply and demand; structured products are affected by how well prices match the preset ranges; and products pegged to real-world assets tend to have more stable returns.

Conclusion

The stability of returns and liquidity are not inherently opposed; Gate’s product design finds a balance between the two. Short-term funds can maintain full liquidity through “holding coins and earning interest” or flexible savings while earning basic returns; medium-term funds can accept moderate liquidity sacrifice for more predictable yields via fixed-term products; long-term funds can leverage compound interest to amplify gains over time.

The USD1 “holding coins and earning interest” activity demonstrates that, within a specific event window, users can enjoy high annualized yields—up to 20%—while maintaining complete liquidity, breaking the traditional notion that “high returns must sacrifice liquidity.”

Ultimately, there is no one-size-fits-all answer for fund allocation. Each fund has its own purpose, time horizon, and risk tolerance. Before investing in any wealth management product, it is recommended to evaluate your own fund attributes across three dimensions: liquidity needs (whether funds need to be accessible in the short term), expected holding period (how long funds can remain idle), and return expectations (whether you prioritize yield certainty or accept fluctuations). Making allocation decisions based on these dimensions will lead to a wealth management plan that truly matches individual needs.