DeFi is the hottest thing within the cryptocurrency space. Outlet is a DeFi product with a goal to bring these high interest rates to anyone and add fuel to the fire of DeFi
DeFi is the one of the most important things in the Ethereum ecosystem. DeFi is finding real product market fit throughout the entire cryptocurrency ecosystem. This movement is not only a bullish indicator of future gains, but a positive influence on the world. Open finance is changing the way people look at blockchain technology.
The open finance movement DeFi is an idealistic future where anyone can back any loan and reap the benefits of doing so. The interest that was formerly only available to banks can be earned by anyone willing to put up the funds.
Outlet is a mobile app launching soon that will connect traditional dollars to the DeFi ecosystem. The mobile application is will look, and feel like a traditional bank account on the front end but be a cryptocurrency application on the backend.
The Average interest rate on Outlet is around 15% currently, compared to traditional savings accounts that pay less than the rate of inflation.
The app will keep track of the interest rate you earn on your dollars that go toward funding lending protocols such as Compound.finance, Dharma, or Maker, these lending protocols have loans waiting to be matched with your funds. Once your funds are matched with a loan and are transmitting the funds non-custodially to the top yielding protocol. We maximize the return between all yields of stablecoins on the Ethereum blockchain.
All transactions are tracked by Etherscan. Etherscan shows users that your funds are in fact tied to a collateralized debt position (CDP) A CDP is some type of loan backed by a digital asset. The reason why these loans are safe to back is that they are over collateralized. Meaning users are locking up over 150% of the funds to back a loan.
For example, people that are taking out a loan on their Bitcoin, Ethereum or other large market cap cryptocurrency have to pay well over the dollar amount they are taking out. The collateralized ratio works like this.
If the person wants to take out $1 they would have to lock $2 in Ethereum or Bitcoin. Your dollars will be shown funding the CDP through Etherscan.
Fueling the fire of DeFi has its benefits. Benefits that are on average a 7% return on your dollar. Stable coins and decentralized finance is going to change the way the lending works. Blockchain technology is finding product market fit with decentralized finance and the concept of open finance.