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Stablecoins³
At launch only ETH will be enabled for deposits on the decentralized savings platform but shortly after WBTC and different stablecoins will follow. At DeFi.ch stablecoins become superpowers.

Impossible interest rates.

It is common knowledge that in the DeFi sector it is possible to get very attractive interest rates for stablecoin deposits, even without much risk. At DeFi.ch the interest rate for stablecoin deposits is 24%. Many of you will think now that is impossible - but it isn't!
At DeFi.ch we generate interest by using stablecoins - even if a user deposits for example ETH we borrow stablecoins from our partner bank and use those stablecoins to generate interest. This workflow is unique and we are the first platform to offer this kind of interest generation to the public. So we have something special to offer for all crypto holders, but what can we offer to the stablecoin holders out there?
We are lucky that in the banking industry there is a big difference between volatil and non volatil assets - while cryptocurrencies like Ether or Bitcoin are volatil assets, stablecoins like USDC or DAI are non volatil assets. Because they are pegged to the US Dollar there shouldn't be much volatility, 1 USDC should always be 1 USD.
Banks make a big difference between the security somebody provides to get a loan. That means that the loan to value ratio for loans with a non volatile security is higher compared to loans with a volatile security. In simpler terms: If the security is non volatile it's possible to borrow more money than with a volatile security.

Sometimes examples are easier.

Since theory sometimes is complicated let's go for a simple real life scenario:
Depositing Crypto
Depositing Stablecoins
User A deposits 1 ETH on DeFi.ch.
At the time of writing 1 ETH is worth 3600 USD
User B deposits 3600 DAI on DeFi.ch
DeFi.ch can borrow 3600 USD in stablecoins from it's partner bank
DeFi.ch can borrow 10'800 USD in stablecoins from it's partner bank
User A profits from 12% interest
User B profits from 24% interest
While stablecoin holders get a better interest rate, people who hold cryptocurrencies have the chance to profit double if the price of the cryptos they hold raise.
Last modified 2mo ago
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