Wirex X-Accounts With High Interest Rates

[Martin Everson]

Anyone seen the interest rates that wirexapp are offering?

Seems they use USDC for your fiat x-account. But 12% on USD, AUD, HKD plus compounding ability.

X-Accounts - Saving made simple | Wirex

Boost your savings with X-Accounts and enjoy interest rates reaching up to 16% AER on specific currencies.

wirexapp.com

We’ve moved our community to Discord

Discover why Wirex is moving its Community Forum to Discord, so join us on the new platform for easy engagement with like-minded people

community.wirexapp.com

 

[MiddleEuroAsia]

Anyone seen the interest rates that wirexapp are offering?

Seems they use USDC for your fiat x-account. But 12% on USD, AUD, HKD plus compounding ability.

X-Accounts - Saving made simple | Wirex

Boost your savings with X-Accounts and enjoy interest rates reaching up to 16% AER on specific currencies.

wirexapp.com

We’ve moved our community to Discord

Discover why Wirex is moving its Community Forum to Discord, so join us on the new platform for easy engagement with like-minded people

community.wirexapp.com

"*All X-Accounts are created using cryptocurrencies, and pay out interest in cryptocurrencies. All mention of X-Accounts using fiat funds refers to fiat funds converted to stablecoins. No interest is paid on fiat funds or paid out in fiat. Terms and conditions apply."

So, they pay interest on stable coins and not actual fiat, I mean, it's great and all, but that's nothing new, nexo already do this (and they give you loans, plus they have tons of other features that wirex doesn't have), Also there are plenty of reputable websites and services that do this already, like:

https://nexo.io/

Gemini Earn Updates - Transparency Builds Trust | Gemini

This page aims to bring as much transparency as possible to the process of finding a resolution for all Earn users to redeem their funds. We will update this page on Tuesday and Friday of each week until a resolution has been reached.

www.gemini.com

Buy, Borrow, Swap & Earn Crypto | Celsius, Your Home for Crypto

Crypto doesn’t need to be complicated. Buy, swap, earn, borrow and send – all in one app, with zero fees. Earn up to 17% APY and get 1% APR crypto-backed loans

celsius.network

Crypto Earn: Earn your crypto rewards safely

Earn your crypto rewards safely and securely at Crypto Earn - the world’s most regulated platform, as measured by licenses, security and privacy certifications.

crypto.com

Do More with Your Crypto

Don’t just buy bitcoin, earn it. BlockFi is the easiest place to buy, sell and earn cryptocurrency. Start earning today.

blockfi.com

YouHodler.com | Your Digital Assets at Full Potential

Easy-to-use Web3 crypto & fiat Fintech for all users. Offers services beyond holding & trading. Platform's wallet allows easy utilization of digital assets.

www.youhodler.com

Crypto yields tailored to your risk profile | SwissBorg Earn

Choose your risk-return ratio and earn a passive yield on your crypto. Multiple crypto yielding strategies on 20+ tokens, all in one app.

swissborg.com

But yeah, the more the better I guess

 

[Silvio]

Why would they give such high % on stable coins? Why would anybody pay 12% for a USD stable coin unless there is some hidden (or not so hidden) risk?

 

[Martin Everson]

Why would they give such high % on stable coins? Why would anybody pay 12% for a USD stable coin unless there is some hidden (or not so hidden) risk?

Exactly

"*All X-Accounts are created using cryptocurrencies, and pay out interest in cryptocurrencies. All mention of X-Accounts using fiat funds refers to fiat funds converted to stablecoins. No interest is paid on fiat funds or paid out in fiat. Terms and conditions apply."

So, they pay interest on stable coins and not actual fiat,

Thats what I stated in first post...lol...i.e:

Seems they use USDC for your fiat x-account.

 

[MiddleEuroAsia]

Why would they give such high % on stable coins? Why would anybody pay 12% for a USD stable coin unless there is some hidden (or not so hidden) risk?

Because there is huge demand for crypto loans (specially stable coins loans). investors are leveraging their holdings to get more crypto with these loans, and these Exchanges would do everything in order to keep stablecoins in their platform, they make a ton of money from it, and they share a large percentage of their profits with their liquidity providers (you and me).

For example Celsius says (We earn profits by lending coins to hedge funds, exchanges, and institutional traders, and by issuing asset-backed loans at an average of 9% interest. We're taking the exact same 80% profit margin that banks have kept for themselves for centuries and returning it to our community of depositors).

 

[MiddleEuroAsia]

Thats what I stated in first post...lol...i.e:

I know ,

I was just confirming that this news is not new, there are plenty of strong competition in this space, so I was excited because I thought that wirex were different and they pay interest on actual fiat not stablecoins.

 

[Silvio]

For example Celsius says (We earn profits by lending coins to hedge funds, exchanges, and institutional traders, and by issuing asset-backed loans at an average of 9% interest. We're taking the exact same 80% profit margin that banks have kept for themselves for centuries and returning it to our community of depositors).

Banks have 80% profit margin? Man these guys gotta read some balance sheets...

Because there is huge demand for crypto loans (specially stable coins loans). investors are leveraging their holdings to get more crypto with these loans, and these Exchanges would do everything in order to keep stablecoins in their platform, they make a ton of money from it, and they share a large percentage of their profits with their liquidity providers (you and me).

Interesting. Sounds like the perfect ponzi, leveraging your stable coins to buy more crypto... pushing crypto prices even higher.. and so on

 

[Tr0nad0r]

12% doesn't sound crazy taking into consideration that the typical exchange can charge to their customers +30% yearly as interest for borrowing stablecoins. The providers of those interest accounts earn most of the money as liquidity providers for big institutions.

This is article have a good explanation of some of the most important risks of those types of accounts

BlockFi Review and Risk Analysis

www.lynalden.com