Block Earner, an Australian fintech company, has officially launched and is using decentralized finance (DeFi) technology to offer 7% fixed rate investment products to everyday investors.
Block Earner has already attracted the attention of crypto industry celebrities and completed a $ 6.4 million seed funding round last December. Led by Framework Ventures, it was attended by Coinbase Ventures, DeFi Alliance, LongHash Ventures, and crypto veteran Kain Warwick, founder of Synthetix, an Australian-based crypto derivatives exchange.
In an interview with Cointelegraph, Block Earner co-founder Jordan Momtazi said that Australia’s current economic situation is virtually impossible to achieve similar returns, especially using the methods offered by traditional financial institutions. In some cases, he said he is making products that offer savings yields attractive.
According to a study conducted by Block Earner and Sydney-based market researcher PureProfile, 86% of Australians surveyed were aware of the effects of recent inflation, and 22% of those surveyed saw rising prices for goods and services. With that in mind, I’m concerned about how to make a profit. ..
Comparing the differences between traditional finance and DeFi return benchmarks, Momtazi said:
“Australian people get the highest revenue from a traditional savings account in the range of 0.1-0.3%. Compare this to a 7% product like Block Earner to easily see where people end up. increase.”
Momtazi continues to say that the overall point of Block Earner is to give Australians everyday access to new technologies without “hard work” and to increase their savings over time. I did.
Block Earner works by converting Australian dollars to US dollar stablecoins called USD Coin (USDC). Block Earner lends its USDC to two major DeFi protocols called Aave and Compound to provide investors with a yield.
It’s also worth noting that Block Earner was the first fintech company to allow mainstream integration into Aave and Compound.
Momtazi promises investors will receive a fixed return of 7% until July of this year, but Block Earner’s floating rate products could allow investors to earn up to 18% annually. I added.
The fast-growing, largely unregulated DeFi territory is not without risk, and companies like Block Earner have malfunctioned smart contracts, lack of demand for loaned products, liquidity pools (Aave and Compound), etc. I continue to be exposed to occasional problems with DeFi. I am suffering from some form of attack.
Related: Aave launches v3 liquidity pool following unanimous governance decision
Momtazi emphasized that Block Earner is a “conservative” company, and that the company “chosen stablecoin like USDC for security and legitimacy.”
We believe that being conservative is part of a long-term project. We believe that security and trust are fundamental parts of our long-term strategy, and we are not just choosing double digital returns from other loosely regulated areas. “
To ease the fear of crypto skeptics, Momtazi continued to state that Block Earner’s continued performance gradually proved DeFi’s legitimacy over time.
“New things are always considered horrifying, and that’s not surprising. We justify DeFi technology with continuous performance.”
Block Earner is registered with Australia’s financial intelligence agency AUSTRAC and protects investors’ funds with Fireblocks, one of the world’s largest digital custodians, but the company does not need to apply for an ASIC license. did.
Talking about potential regulatory issues for DeFi products from the Australian Government, Momtazi is completely optimistic, regulation is a positive measure for the crypto industry, and Block Earner is a regulatory measure that Australian legislators deem appropriate. He said he was ready to fit.
“Legislation legalizes this space in a much better way. […] So far, regulatory matters have been very positive. Enforcing asset custody standards and maintaining a minimum audit level is positive to achieve that in full. “
