DeFi has the ability to make traditional banking services obsolete by providing permissionless access to credit-check-free lending and borrowing or generating a return on idle capital through an APY.
These days, a traditional savings account offers as little as 0.04%, yet rates in DeFi reach as high as 10%, depending on market conditions, volatility, volume, and more. The only hurdle that remains is that users must connect their blockchain wallets to decentralized apps to access automated market-making platforms, which come with technical requirements and a layer of risk.
That’s why Covesting’s new yield accounts on PrimeXBT could be a turning point for the budding section of the crypto industry because, for the first time, accessing yield-generating protocols has been made easy. Here’s how.
Why DeFi Matters So Much In Finance
When Bitcoin was created, Satoshi Nakamoto aimed to allow users to become their own bank and essentially cut out the middlemen associated with the current monetary system.
As the ecosystem grew, Ethereum was introduced, and smart contracts added new layers to how cryptocurrencies transact. The added line of executable code allows decentralized applications to run on the Ethereum supercomputer.
These decentralized applications can offer users ways to access features and services that were only available from a bank in the past. Banks require approvals, credit checks, and all kinds of personal information. If they don’t think you should have a loan, you don’t get one, regardless of how much capital you have.
DeFi cuts out the middlemen, and protocols connect users with financial services without the need for jumping through hoops, only to ultimately be turned down.
How Covesting Yield Accounts Makes DeFi Easy
But DeFi isn’t quite there yet in terms of accessibility, or at least it hasn’t been historically. For example, because users must connect to decentralized platforms, there’s a chance of loss associated with user error when connecting wallets to the blockchain. Many DeFi platforms experience bugs and exploits, which result in the loss of user’s funds.
However, PrimeXBT has just launched its Covesting Yield Account system, which offers access to top DeFi protocols through the PrimeXBT dashboard and using bank-grade account security. The service is the best of both worlds, providing access to APY rates of up to 10% when staking idle crypto assets while also offering world-class 24/7 customer service and a dedicated account manager.
Users can stake ETH, USDT, and USDC, all from the same trusted account they use to trade crypto, forex, commodities, and stock indices. As part of the Covesting ecosystem, users can also stake COV tokens to unlock additional utilities within the Covesting Yield Account module. Utilities include up to a 2x boost in APY, trading fee discounts, and much more, depending on the membership level.
What Will PrimeXBT Drop Next?
Covesting Yield Accounts, copy trading, and COV token staking are just three of several innovations that PrimeXBT has released over the last several months. Other updates include a complete visual and infrastructure makeover with the platform’s V2.0 upgrade, and a slew of new altcoins, which include Dogecoin and Solana.
All of this and more are available under just one roof and are part of the company’s continuous roadmap of innovation where it always seems to have something up its sleeve. The company blog has more info and is where you can stay tuned for more future updates as they are announced.