Booming crypto money market means high interest deposit accounts


Behnam Norouzi / Unsplash

Crypto money the market is booming, and it’s all thanks to DeFi. Since DeFi “summer 2020”, when the Total Locked-In Value (TVL) in DeFi smart contracts rose 2,000% in just a few months (peaking at $ 20 billion), enthusiasm for crypto money market services reached an all-time high.

DeFi’s TVL is currently to $ 53 billion.

The demand for crypto credit keeps growing due to the many use cases of crypto lending open for investors and crypto holders. Whether it’s taking advantage of crypto positions through margin lending or realizing tax benefits by borrowing crypto, the flexibility of programmable currencies continues to open doors.

For example, only one amazing development is the flash loan where, by using smart contracts, investors can take advantage of cryptocurrency without a transaction guarantee. If the transaction fails, it is rolled back and the borrower only pays the Ethereum “gas fee”. If successful, the borrower pays a small interest of 0.09% on the loan. Such loans are impossible without the use of smart contracts, and they give an idea of ​​the almost limitless potential of programmable money.

Learn more about Ovex High Interest Savings Accounts

DeFi means that you can still make money in the crypto money market, even during a crypto crash.

South African decentralized stock exchanges (DEX) like Ovex can now offer a plethora of new services in the field of cryptography. One of these services is that of high interest deposit accounts where crypto holders can earn up to 20% annualized interest on certain cryptocurrencies.

This type of return is virtually unheard of in the day-to-day experience of wealth managers, and probably the most impressive fact is that crypto holders can still earn high interest even when a coin’s value has plummeted.

The recent bitcoin crash in May 2021, which saw the currency tumble at nearly half of its peak value of over $ 60,000 in April, has done nothing to tame the eagerness with which investors are embracing DeFi and locking their crypto into DeFi exchanges to earn big interest.

Even non-programmable bitcoin has now found a way to access DEX using ERC20-compliant token-wrapped bitcoin (WBTC) which is pegged to the price of bitcoin.

By offering traditional centralized finance (CeFi) services, but on a DeFi platform, DEXs can now make money for their customers regardless of the current price of a coin – thanks to interest rates. respectable. This trend is expected to continue as long as credit demand remains high, which all signs point to for the foreseeable future.

Many companies also have started buy crypto wholesale in order to protect against fiat currency depreciation. This means that a lot of money is now committed to ensuring the success of crypto.

Stablecoins

Stablecoins add another layer of stability to the DeFi ecosystem. By using stablecoins, crypto holders can remove another level of risk from their interest account deposits, if they wish to sell that crypto in the future.

Ovex offers several levels of interest earnings in its interest accounts depending on the type of coin deposited. Even the least lucrative coin – bitcoin – offers a respectable 4% annualized interest while stablecoins like tether (USDT), binance USD (BUSD) and trueUSD (TUSD) offer higher interest levels (9-10 %) due to their reduced volatility.

Deposits of R500,000 or more benefit from higher interest rates, reaching up to 20% for some cryptocurrencies. These prices are established on a case-by-case basis and depend on the part deposited and the amount.

Learn more about Ovex cryptocurrency interest accounts

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