While searching for a save possibility to get a fair interest rate for our cryptocurrencies we had to realize that most services just generate lucrative rates for stablecoins. If you dig deeper into the topic it is pretty obvious why just stablecoins generate a high yield - because the demand on those coins is very high and people are willing to pay higher interest rates for their loans. It is in the nature of the P2P-lending business that borrowers prefer to get their loans in a stable currency not to suffer from impermanent loss while the loan is running. So how would it be possible to get a high interest rate on crypto deposits which are not stablecoins?
The solution to our puzzle was laying where most decentralized finance startups won't ever search: in the banking sector or the so called old finance. As we all know in the banking industry the floodgates of liquidity remain wide open. This paves the way for cheap money what is exactly what we need to solve our problem. Once the mission was clear it was still a lot of work to find the perfect partner for our journey - but now we are happy to say we found the perfect match.
One of the biggest advantages of the banking sector is that there is nearly unlimited liquidity and that there is no need for overcollateralization. While it is understandable that in the crypto space there is no way around overcollateralization in some cases it can be very helpful to not need to deposit two dollars if you want to borrow one. And for us that was exactly the case: by finding a way to get access to liquidity and not having to overcollateralize every dollar we found the solution to our problem. Since banks are making their first small steps in direction of being pro crypto we hope we can do our part in showing the old banking industry that crypto is something positive!
As far as we know our partnership is the first of it's kind and we are trying something new in a special way, but we believe that we should try to find a way to use synergies instead of fighting each other.