FAQs

What is Pillow?

Pillow is a digital asset management app that helps users get the best returns on their digital assets with none of the associated hassles. To start off, Pillow is offering users the best returns on their crypto (BTC, ETH, and stable-coins like USDC and USDT).

Currently, users can earn up to 10.42% returns on their stable-coins, 6.02% returns on BTC and 6.03% returns on ETH.

What is Pillow’s goal?

Pillow aims to make it as simple as possible for users to start earning the best returns on their crypto. Today, to invest in DeFi and start earning returns, users have to jump through multiple hoops: right from setting up a Metamask wallet to transferring their crypto on-chain to understanding gas fees, bridging and many other aspects.  

While there is so much value being created in DeFi, the process needs to be much simpler for the users.  

That’s where Pillow steps in. Users just have to transfer their crypto to their Pillow account and they start earning returns immediately. Pillow does all the heavy lifting at the backend while ensuring a seamless investment journey on the front-end.

Can you tell me more about the Pillow team?

Pillow was founded by a team with deep expertise in DeFi, crypto, digital asset management, and building global, scalable businesses. Pillow’s founders are

Arindam Roy

Kartik Mishra

Rajath KM

Who are Pillow’s investors?

Pillow has raised $3M from some of the top investors across the globe. Elevation Capital led the round as the primary VC.

Apart from this, Pillow has raised money from crypto native angels such as Sandeep & Jaynti (Co-Founders, Polygon), Scott Lewis (Co-Founder, DeFi Pulse), Prabhakar Reddy (CEO, FalconX), and Aniket Jindal (Co-Founder, Biconomy).

Pillow is also backed by industry stalwarts like Farid Ahsan (ShareChat), Mukund Jha (Dunzo), Kush Taneja & Sambhav Jain (FamPay), Mike Rosengarten (Camino), Brijesh Bharadwaj (Dunzo), Paul Finney (SpaceKayak) and Suhas Motwani (The Product Folks)

Where is Pillow incorporated?

Pillow is incorporated in Singapore and with a tech office in Bangalore, India. Considering COVID, the team is working from their respective homes.

What is Pillow’s business model?

Pillow makes profits from the returns generated on top of the 10.42% returns made accessible to you.

Pillow keeps a small percentage of the spread generated, a small percentage also goes into Pillow’s yield reserves, and the vast majority of the returns are passed on to the user.

In which countries does Pillow operate?

Pillow is a global product and welcomes people from all geographies where investment in crypto and DeFi is legal. Users from all over the world can sign-up and start investing upon completing their KYC.

Does Pillow trade my assets?

Pillow never trades your assets for unlike assets

  • Your USDC/USDT will never be swapped/traded for a BTC, ETH or a volatile asset
  • Your BTC or ETH will never be traded for any other asset

Pillow, depending on strategy, may:

  • Trade your stablecoins (USDC, USDT) to other blue-chip stablecoins such as DAI
  • Bridge your crypto from one chain to another
  • e.g. ETH deposited on the ERC-20 network maybe bridged as ETH to the Polygon network

This is to ensure that the users’ deposited principal is never at risk because of market conditions. You always walk away with the assets that you deposited plus the returns generated on top.

How can I get access to Pillow?

While Pillow is still in the early access phase, you can get access to Pillow by signing up for the early access.

Once more early access slots open up, you shall receive an email from us informing you of the same with a link to download the app.

Why should I choose Pillow over others?

Pillow always ensures the best returns on your crypto irrespective of the crypto that you bring in.

Pillow is the only app that allows you to start generating the best interests on your crypto via DeFi without having to worry about the other hassles like gas fees, bridging, security, etc.

Pillow has built a world-class research team that analyzes 500+ protocols across 10 chains to ensure that the users’ crypto is being invested in the best protocol with the least amount of risk.

Pillow uses BitGo for custody, the world’s leading custodial service used by the top exchanges and companies across the world. This also means that the users’ funds are insured up to $250M on any problems arising because of custody.

How is Pillow generating up to 10% returns APY?

Pillow generates returns by investing the users’ crypto into the best blue-chip DeFi protocols.

Pillow has a dedicated research team that actively looks at 500+ protocols across 10+ chains (such as Ethereum, Polygon, Fantom, Arbitrum, etc.) to find the safest protocols to invest the users’ crypto in. These DeFi protocols are spread across various business models such as lending & borrowing, single-sided staking, insurance, etc.

Most of the yield generated from these investments is passed on as returns to the users.

Are the up to 10% APY returns guaranteed?

The current strategy, based on market conditions, offers up to 10.42% APY on the USDx product and up to 6% APY on the BTC and ETH. There are minor fluctuations on a day to day. Any significant changes to these rates will be communicated well in advance to the users to ensure complete transparency and to allow the users to take appropriate decisions as and when necessary.

When do I start earning returns after successful deposits?

Once the deposit is successful, users start earning returns immediately. For ease of use, returns are credited daily at a pre-determined time.

How often are the returns credited to my account?

The returns are credited to your account daily at a pre-determined time.

What is the return rate on USDC | USDT?

The return rate on the USDx Case (which takes deposits of USDC or USDT) is currently 10.42% APY.

E.g. If you have $25,000 invested

- $500 will earn 10.42% APY
- The balance $24,500 will earn 8.42% APY

What is the return rate on BTC?

The return rate on the BTC Case (which takes deposits of BTC) is currently 6.02% APY.

E.g. If you have 1 BTC invested

- 0.3 BTC will earn 6.02% APY
- The balance 0.7 BTC will earn 3.08% APY

What is the return rate on ETH?

The return rate on the ETH Case (which takes deposits of ETH) is currently 6.03% APY.

E.g. If you have 10ETH invested

- 5 ETH will earn 6.03% APY
- The balance 5 ETH will earn 3.51% APY

Will I earn returns as soon as I deposit funds?

Yes, you will start earning returns as soon as your funds are successfully deposited.

Why do I need to do KYC?

Pillow requires you to complete your KYC for regulatory compliance. Regulations across geographies mandate that Pillow collects KYC as well as does AML (anti-money laundering) checks on its users before allowing them to deposit their crypto or fiat (local currencies).

This one-time process ensures that our users face no legal or financial hassles later and are investing in a fully-compliant manner.

What ID cards do you support?

Global

  • We accept national ID cards, passports, drivers licenses as valid documents for identity verification

India

  • For Indian users, we need the following identity cards for a robust and compliant KYC and ID verification process
  • Aadhaar Card
  • PAN Card

What do I do if my KYC fails?

In case your KYC fails, you will get an option to retry your KYC. Please try to ensure the following

  • You take the photos in a well-lit environment
  • There is no blur or glare which is obstructing the ID card or the selfie
  • You are taking a photo of the actual ID card rather than a photo of it on a digital device such as a laptop or mobile device

If you’re unable to resolve the issue, do join our Telegram channel and request for support or write to us at support@pillow.fund

My KYC says it is being verified. What should I do?

This message appears when the automated KYC system flags your application as an edge case because of a blurry image or other reasons. The manual review team will check your application and clear this out as soon as possible. Please check the app again in 30 minutes or when notified.

What documents are required to do my KYC for INR transactions for USDC?

You need the following documents to do your KYC for INR deposits

  • Aadhaar Card
  • PAN Card

What is the process to complete my KYC for INR transactions?

It is just a simple three-step process to finish your KYC on Pillow to start with INR or crypto deposits

  • Click a photo of the front and back of your Aadhaar card
  • Click a photo of your PAN Card
  • Say cheese and click a selfie

Once your KYC is approved in a couple of minutes, you’re good to go with depositing crypto or INR in Pillow.

What KYC do I need to do to deposit crypto?

It is just a simple three-step process to finish your KYC on Pillow to start with crypto deposits

  • Click a photo of the front and back of your identity document
  • Click a photo of your PAN Card (if you’re from India)
  • Say cheese and click a selfie

Once your KYC is approved in a couple of minutes, you can start depositing crypto into your Pillow account and start earning interest.

How can I get started on Pillow?

To get started on Pillow:

  • Download the Pillow App (iOS, Android)
  • Sign-up with your details
  • Finish a very simple KYC
  • Deposit crypto via your exchange/wallet or via fiat currencies
  • Voila! You start earning returns immediately

What is the minimum deposit?

There is no minimum deposit to get started on Pillow via crypto.
A typical user brings in these amounts on average as their first deposit across available payment modes:

  • $2100 in USDC or USDT
  • 0.5 ETH
  • 0.04 BTC

Which payment methods are supported?

The following forms of payment are supported

Crypto Deposits

  • BTC via the BTC network
  • ETH via the ERC-20 network
  • USDC and USD via the ERC-20 and BSC chain

Fiat Deposits

  • Pillow does not directly support fiat deposits. Pillow connects users to third-party on-ramp providers who allow you to buy crypto via fiat and only the crypto is deposited in the user's Pillow account.
  • Depending on your geography, we support local currencies to buy USDC through our on-ramp partners
  • For India, we connect users to buy USDT via INR through our on-ramp partners and only the crypto is deposited on to Pillow. Pillow does not accept any fiat payments to Pillow's accounts.

What is the maximum amount I can invest in Pillow?

There is no maximum amount that one can deposit in Pillow. Currently, there are users who have deposited greater than $300k as well in Pillow to earn 10.42% returns on their deposit.

I am unable to invest in Pillow. What should I do?

In case you run into issues while investing in Pillow, you can either get our real-time chat support via WhatsApp, or join our vibrant Telegram community, or even write to us at support@pillow.fund.  

Whatever your question, we should be able to help you through the process and ensure you can safely invest in Pillow.

How long does it take for my deposits to reach Pillow?

Crypto deposits made via Pillow:

  • Will reflect 15 minutes post the transaction being confirmed on the blockchain. BTC takes longer as it requires at least 3 block confirmations before being processed.
  • The exact time for deposit can be dependent on your exchange or wallet of choice and the time they take to push the transaction to the blockchain and we have noticed that a few exchanges can take a few hours before processing deposits.

For fiat (local currency) deposits via Pillow’s on-ramp partners:

  • The deposit gets reflected once the fiat is received and the transaction to trade to your crypto is successful.
  • This process takes a matter of a few minutes once Pillow receives the funds from your bank or card.
  • Depending on the bank or the card, it can sometimes take 15-30 minutes to receive your fiat/local currency.
  • In case of any queries, please join our Telegram community or chat with our team on WhatsApp.

Which all networks will be supported?

Pillow currently supports Ethereum and the Binance Smart Chain for deposits to begin with for USDC and USDT.

We recommend using the Binance Smart Chain (BSC) for transactions to minimize gas fees.

Pillow accepts BTC on the BTC network and ETH on the ERC-20 network only.

We will be expanding support to Polygon and other chains shortly.

Does Pillow accept deposits in crypto?

Yes, you can directly deposit your crypto by sending crypto to your Pillow wallet address.

We currently accept

  • BTC on the BTC network
  • ETH on the ERC-20 network
  • USDC and USDT on the ERC-20 and BSC networks

Which all stable coins are accepted by Pillow?

Pillow currently accepts USDT and USDC on the ERC-20 and BSC networks.

We would recommend using the BSC network for lower gas fees.

Will Pillow accept crypto other than BTC, ETH and USDC/USDT?

Currently, Pillow supports deposits of only BTC, ETH, USDC and USDT. Sending crypto other than these supported ones can lead to a loss of your crypto.

We will be expanding the investment strategies to other tokens/coins like MATIC, SOL, etc. based on the user feedback and demand.

When can I withdraw my funds?

You can withdraw your funds at any time that you want. There is no lock-in period for your funds.

Where can I withdraw my funds to?

You can withdraw your funds to a custodial wallet (like Metamask), an exchange address or any other wallet that you own.

If you're an Indian user, you can also withdraw you money to the bank account registered by you on the Pillow app.

How do I withdraw funds?

You can withdraw your funds to your wallet of choice:

Crypto withdrawal:

  • You can withdraw your crypto into a wallet or exchange of your choice
  • Enter the wallet address where you want to withdraw funds to and submit your withdrawal request
  • The withdrawal request is processed and funds will be credited to the entered wallet address

Fiat Withdrawal (INR Only):

  • You can swap your USDT to INR and withdraw it to your registered bank account from the Pillow app
  • Go inside the USDx Case and click on Withdraw
  • Choose the amount you want to withdraw in INR
  • Enter the OTP received on your registered email address
  • Your withdrawal should be on its way and credited to your registered bank account within 2 hours

Is it possible to do partial withdrawal on Pillow?

You can choose to withdraw whatever portion of your balance available on Pillow.

Can I withdraw to my bank account?

For global users, Pillow currently does not support withdrawals to your bank accounts.

For Indian users, Pillow allows you to withdraw to your registered bank account from within Pillow.

Check the answer for "How do I withdraw funds?" for a step by step guide.

Is there a fees applied on withdrawals?

There are zero fees charged for withdrawals.

How long does it take to process withdrawals?

Unlike exchanges, withdrawals on Pillow involve unlocking DeFi investments across multiple chains and bringing them to you consolidated on a single chain.

  • You can mostly expect these to be done in a  few hours, however sometimes takes longer.
  • Some exchanges take a longer time to process deposits as compared to withdrawing to custodial wallets such as Metamask.

For Indian users, who are trying to withdraw to their bank account, it can take up to 2 hours for the funds to be credited to your registered bank account once you successfully place a withdrawal request.

How are the returns made via Pillow taxed as per the Indian tax laws?

Indian tax laws do not have pre-defined rules to tax the returns made via crypto assets as of today.

The best practice for returns made via crypto assets is to categorise them as business income and are pay 30% tax for retail users with taxable income of up to INR 1 Crore.  

You can also declare the returns as “income from other sources”. There might be a possibility that with the new crypto bill, crypto returns could come under long-term and short-term capital gains. Pillow will keep you posted about the latest developments on this front and help you get clarity as there is more clarity from the regulators.

What help can I expect from Pillow in filing my tax returns?

Towards the end of the financial year, Pillow will help you generate a tax statement based on the returns generated in Pillow. In case of any questions in the meanwhile, please do reach out our support on WhatsApp, join our vibrant Telegram Community or write to us at support@pillow.fund.

Please do note that  Pillow is not a registered financial advisor and we recommend you to check with your accountant or tax consultant before making tax-filing decisions.

What are the risks? How does Pillow ensure my money is safe?

There are four main risks when investing in DeFi via Pillow:

Regulatory & Legal Risk

  • Nations can decide to ban crypto or investments in DeFi
  • Pillow is incorporated in Singapore, which is a crypto-friendly nation
  • In case your country decides to ban crypto or investments in apps like Pillow, your funds will be safe. The funds will be returned to the wallet of your choice without any additional charge.

Smart Contract Risk

  • DeFi protocols use smart contracts to automate all transactions
  • If a smart contract is badly written, it can be vulnerable to attacks and can lead to loss of principal.
  • Pillow invest only in blue-chip DeFi protocols which have been audited by the gold-standard smart contract audit firms to ensure that the users’ risks are minimized.
  • Apart from the smart contract audits by these firms, Pillow’s internal team also does a smart contract audit for checking vulnerabilities.
  • In addition, Pillow deploys assets to multiple protocols across chains as to minimize smart contract exposure to any single protocol.

Peg Risk

  • This applies only for stablecoins and involves the stablecoins no longer holding the peg to the dollar (i.e 1 USDC is no longer ~= 1 USD).
  • To minimize the risks, Pillow accepts and invests only in blue-chip stablecoins such as USDC and USDT, which have $40B+ liquidity, and have survived multiple bull and bear markets without continued loss of peg.

Custodial Risk

  • This is the risk where users' funds get lost/hacked from the custodian. Pillow uses BitGo (used by the largest global crypto exchanges) as its custodian. This comes along with insurance on the crypto up to $250M when the assets are in custody and not deployed
  • Assets under deployment are not insured. However, Pillow uses Gnosis Multi-Sig and Qredo-MM Institutional setup for DeFi custody during deployment which provides decentralized multi-party computation (dMPC).

Who manages these risks?

The risks are completely managed for you by Pillow to the best extent possible.

Pillow has a dedicated research team that is actively researching 500+ protocols across 10 different chains to ensure the best returns for you while ensuring the maximum safety which includes

Smart Contract Risks

  • We invest only in protocols with smart contract audits by the best smart contract audit firms, apart from conducting independent audits ourselves.
  • In addition, Pillow deploys assets to multiple protocols across chains as to minimize smart contract exposure to any single protocol.

Peg Risks

  • Pillow accepts and invests only in blue-chip stablecoins such as USDC and USDT, which have $40B+ liquidity, and have survived multiple bull and bear markets without continued loss of peg.

Custodial Risks

  • Pillow uses BitGo (used by the largest global crypto exchanges) as its custodian. This comes along with insurance on the crypto up to $250M when the assets are in custody and not deployed
  • Pillow also uses Gnosis Multi-Sig and Qredo-MM Institutional setup for DeFi custody during deployment which provides decentralized multi-party computation (dMPC) for assets which need to be deployed.

Are my funds insured in case of de-pegging of stablecoins?

Pillow takes deposits and invests only using blue-chip stablecoins such as USDC, USDT and DAI. While there is no insurance taken against the peg, these are stablecoins which have survived multiple bull and bear markets and are battle-tested.

Is my Pillow balance insured?

Deposits in Pillow are not insured by FDIC or any other providers. However, Pillow works with BitGo for custody as a result of which Pillow has an up to $250M insurance for any problems that arise in funds that are in BitGo’s custody.

Pillow’s research and smart contract teams work actively to ensure the least amount of risk while ensuring the best yields for the user.

Are my funds safe on Pillow?

Pillow uses BitGo as its custodial partner. BitGo is the world’s leading custodian and is the custodian for some of the top crypto exchanges across the world. BitGo also comes with up to $250M in insurance for issues that arise to the funds in custody.

Our research and smart contract teams are actively evaluating every protocol for risks, checks for smart contract audits by leading smart contract audit firms such as Certik and rebalances portfolios for effective risk management.

Pillow has the leading DDoS protection, Gnosis-safe multi-signature mechanisms and follows the industry best practices to ensure the safety of the users’ funds.

How secure is Pillow?

Pillow uses BitGo for custody and BitGo is trusted by top crypto exchanges across the world for custody.

Pillow’s transactions are signed by Gnosis-safe multi-signature authentication to ensure no breach of security.

Apart from this, Pillow uses AES-256 encryption to ensure that all data transmission is encrypted.