At Coinbase Wallet LLC, we are committed to providing tailored investment strategies that help you meet your financial goals. Whether you're looking for short-term liquidity or long-term growth, our platform offers flexible solutions with a focus on stability and security.

Our flagship LUSD stablecoin is at the core of these investment strategies, offering a low-volatility asset that minimizes risk while providing opportunities for consistent returns. Below, we outline our available investment strategies, designed to accommodate a variety of investor needs and preferences.

1. Short-Term Investment Strategy (Immediate Access)

For those who need liquidity and flexibility, our Short-Term Investment Strategy focuses on quick access to funds while maintaining the stability of your investment. This strategy is designed for investors who want to invest now and have the ability to withdraw quickly without worrying about price volatility.

How It Works:

• Investment Amount: You decide how much you wish to invest in LUSD.

• LUSD Stability: Your funds are converted into LUSD, which is pegged to the US Dollar, ensuring the stability of your investment.

• Withdrawal Flexibility: You can withdraw your investment at any time, but note that immediate withdrawals come with a 25% fee.

• Fee Structure: The 25% withdrawal fee applies to any funds you decide to withdraw immediately. This allows you to access your investment in any currency (ETH, BTC, MetaMask, or cash).

Example:

• Investment: $20,000

• Withdrawal Fee: 25% = $5,000

• Amount Received: $15,000 after withdrawal fee

Best for:

• Investors who need immediate access to funds.

• Those looking to store value in a stablecoin without worrying about market volatility.

2. Long-Term Investment Strategy (Maximized Growth)

If you're looking for long-term growth and higher returns, our Long-Term Investment Strategy is designed for you. With this strategy, you can hold your investment in LUSD over time, benefitting from lower withdrawal fees and the potential for compounding growth.

How It Works:

• Investment Amount: You decide how much you want to invest in LUSD.

• LUSD Stability: Your investment remains stable with the LUSD stablecoin, ensuring that your principal is protected while it grows.

• Withdrawal Flexibility: If you choose to withdraw after holding your investment for a longer period (until mid-2025), you will benefit from a 3% withdrawal fee instead of the higher fees associated with short-term withdrawals.

• Increased Returns: By waiting until mid-2025 for withdrawals, you significantly reduce fees, leading to higher returns on your investment.

Fee Reduction Timeline:

• Immediate Withdrawal: 25% fee.

• Mid-2025: 3% fee for long-term investors.

Best for:

• Investors with a long-term horizon who are looking to grow their portfolio with low volatility.

• Those who can wait until mid-2025 to take advantage of reduced withdrawal fees.

3. Mixed Strategy (Balanced Growth and Flexibility)

The Mixed Strategy combines both short-term liquidity and long-term growth opportunities. It’s ideal for investors who want to maintain a flexible portfolio with a balance of accessible funds and a portion of their investment growing with lower fees.

How It Works:

• Diversified Investment: You can allocate a portion of your investment for short-term withdrawals and the rest for long-term growth. For example, you might choose to invest 50% for short-term access and 50% for long-term growth.

• Flexible Withdrawals: The short-term portion can be accessed immediately with the 25% fee, while the long-term portion remains invested in LUSD and subject to the reduced fee when withdrawn in mid-2025.

Best for:

• Investors who want a balance of both immediate liquidity and long-term growth.

• Those who prefer not to commit fully to either strategy but want to enjoy the best of both worlds.

4. Future Fee Reduction Strategy (Maximized Savings)

For investors who are in it for the long haul, the Future Fee Reduction Strategy is a specialized opportunity. By waiting until February 2025, you can take advantage of even lower withdrawal fees as part of our ongoing commitment to rewarding long-term investors.

How It Works:

• Investment Amount: You invest in LUSD with the knowledge that your withdrawal fees will decrease starting February 2025.

• Fee Reduction: Once the full subsidy program is in place, withdrawal fees will be reduced to 3% for long-term investors.

• Optimal Timing: Investors who delay their withdrawals until this period will see significant savings compared to short-term withdrawal fees.

Example:

• Investment: $100,000

• Immediate Withdrawal Fee: $25,000 (25%)

• Long-Term Withdrawal Fee (After February 2025): $3,000 (3%)

• Savings: $22,000 in fees if you wait until February 2025.

Best for:

• Long-term investors who can afford to wait and want to maximize their returns by reducing withdrawal fees.

Which Strategy Is Right for You?

• Short-Term Strategy: Ideal if you need immediate access to funds or prefer a low-risk, stable investment without a long holding period.

• Long-Term Strategy: Best for those who are looking to grow their assets over time and minimize fees.

• Mixed Strategy: Perfect if you want to enjoy both the flexibility of short-term access and the long-term growth potential.

• Future Fee Reduction Strategy: Perfect for committed long-term investors who want to optimize their savings by waiting until the full fee reduction takes effect in 2025.