Introducing a simpler way to earn high interest and go in and out of DeFi
Since the pandemic began earlier this year, global markets have had some turmoil and investors around the world are looking for new ways to build their wealth. Crypto has started to offer alternative ways for investors to earn high interest on their investments. But these products have been very challenging and cumbersome to use.
Today, we’re very pleased to announce Earn, our new high interest tool for investors that makes decentralized finance (DeFi) easy to use. OKCoin is the first licensed exchange to simplify DeFi and make it accessible for all investors. We’re also the first to offer DeFi without fees; OKCoin covers the transaction (gas) fees that other platforms typically charge to access these protocols. At the time of writing, that could save a user up to $300 as three different transactions are required to use DeFi protocols.
With Earn, investors can deposit their stablecoin assets into DeFi permissionless liquidity protocols to earn up to 20% annual percentage yield (APY).* Protocols available in Earn include Curve, YFI, and Compound.
Stablecoins were created for the cryptocurrency markets in an effort to provide a stable crypto asset and reduce exposure to volatility. Stabilization comes from the backing of an underlying reserve asset. OKCoin supports five stablecoins.
Your funds, your right to earn
Before DeFi, your funds worked for the banks, not for you. Traditional financial institutions have made their money by leveraging deposits to earn interest; they loaned money out or used it to invest. Meanwhile, offering only 0.01% interest on savings accounts with them. Even new challenger FinTech apps offer a maximum of 0.5%. That isn’t interest, that’s just the small, inconsequential fee that they kick back to the depositor.
We’re changing that. Your funds should work for you not for the financial institutions with access to lending arbitrage. The decentralization of finance means that you are no longer constrained by what banks will offer you or by what criteria they say you meet within their antiquated systems. DeFi doesn’t review your history or your buying power, it gives you open access and the autonomy to make financial decisions for yourself.
The best of decentralization and centralization
As a licensed crypto exchange, OKCoin gives customers the assurance that comes with a trusted, secure, regulated financial entity. But our exchange is built on crypto and our company is built on the belief that an open financial system far outweighs a closed financial system. Our goal is to introduce tools and services that make your money work for you.
Earn isn’t like the offerings from other centralized exchanges who will pay you only 4-8% when you deposit your funds in similar DeFi liquidity protocols, which perpetuates the existing banking system. On OKCoin you are the bank and you can play a role in building an equitable financial future with no barriers.
How it works
Earn gives you access to DeFi’s high interest-paying protocols through a simple tool in your OKCoin account. The tool pulls high yield interest rates directly from each protocol, while providing a low entry bar for customers. Recently, these high yield pools have paid up to 20%* interest on deposited assets.
Unlike traditional interest-earning structures, Earn pays you your interest daily. DeFi protocols are blockchain-based, meaning that earnings are produced with each block that is added to the chain. OKCoin groups transactions into a single daily transaction in order to remove customer transaction fees (gas fees), with interest payments made to your account once daily. This provides a much faster rate of return in comparison to the nominal interest paid once per month by your bank.
With no transaction fee (network gas fee) and no service fee from OKCoin, you keep all of the profits. Not only do you avoid fees on OKCoin, you save funds as gas fees have recently cost up to $100 for a deposit and withdrawal made with a DeFi earn protocol based on gas rates on the Ethereum network.
Earn provides access to three high yield DeFi protocols:
- Curve is a decentralized exchange liquidity pool on Ethereum designed for efficient stablecoin trading. Launched in January 2020, Curve allows users to trade between stablecoins with low slippage, low fee algorithm designed specifically for stablecoins and earning fees. Learn more at Curve.fi.
- Yearn.finance is a decentralized ecosystem of aggregators that utilize lending services such as Aave, Compound, Dydx, and Fulcrum to optimize your token lending. Learn more at yearn.finance.
- Compound is an algorithmic money market protocol on Ethereum that lets users earn interest or borrow assets against collateral. Learn more at compound.finance.
Better than your bank
DeFi protocols are able to provide high interest rates because of the high demand for the protocols and because they strip away all of the costly infrastructure that banks are built on — those funds are passed directly to you instead. Because the rate is demand based, the interest rates for these protocols are floating and change hourly.
For OKCoin users, this means that the rates are not guaranteed at a set amount, but change based on the level of assets deposited into the protocol and are reflected as a daily change in Earn as interest is paid daily. We offer a flexible investment period allowing you to put your funds into Earn and take them out anytime you want.
We are truly excited about making this available to our customers. You can now access Earn through okcoin.com/earn. Visit our FAQ page for more information, or contact email@example.com with questions.
*APY rates are variable and subject to hourly change.