Australian financial technology company Block Earner has officially launched, offering investors every day a 7% fixed interest rate investment product using decentralized financial technology (DeFi).

Block Earner has already attracted the attention of celebrities in the crypto industry by completing a $6.4 million seed funding round last December. It was led by Framework Ventures, Coinbase Ventures, DeFi Alliance, LongHash Ventures and veteran crypto expert Kane Warwick, founder of Synthetix, an Australian cryptocurrency exchange.

Jordan Mumtaz, co-founder of Block Earner, said in an interview with Cointelegraph that Australia’s current economic climate makes savings products attractive, especially when it’s nearly impossible to achieve similar returns using the methods offered by traditional financial institutions.

According to a survey by Block Earner and Sydney-based market researcher Pure Profile, 86% of Australians surveyed have noted the recent effects of inflation, and 22% of respondents are concerned about how they will act on rising prices for goods and services. .

Comparing the benchmark returns of conventional finance and DeFi, Mumtaz said:

“The best return Australians can get from a traditional savings account is between 0.1% and 0.3% – compared to a 7% product like Block Earner, it’s easy to see where people end up.”
Mumtaz went on to say that Block Earner’s main goal is to ensure that ordinary Australians can access new technology without doing “hard work” so that they can grow their savings over time.

Block Earner works by converting the Australian dollar into a stable currency of the US dollar called USD Coin (USDC). Block Earner lends USDC to two major DeFi protocols called Aave and Compound, giving investors income.

It’s also worth noting that Block Earner is the first fintech company to provide major integrations with Aave and Compound.

Although Mumtaz promises that investors will receive a fixed return of 7% until July of this year, he added that Block Earner’s variable rate product can earn investors up to 18% in annual returns.

The emerging and largely unregulated DeFi region is not without risks, and companies such as Block Earner are still subject to the problems that sometimes occur in DeFi, such as broken smart contracts, lack of demand for lending products, and liquidity pools (avi and pool). form of attack.

Related Topics: Aave Launches v3 Liquidity Pool Following Management Unanimous Decision

Emphasizing that Block Earner is a “conservative” company, Mumtaz stressed that the company “chooses stablecoins like USDC because of their security and legitimacy.”

We believe that booking is part of a long-term project. We believe that security and trust are integral to a long-term strategy, and we simply do not choose to double digitally pay off other, less regulated areas. ”

To allay the fears of crypto-skeptics, Momtazi said that the ongoing work of Block Earner will gradually establish the legitimacy of DeFi over time.

“New things always seem intimidating, and that’s okay — we want to prove the legitimacy of DeFi technology with consistent performance.”
Although Block Earner is registered with the Australian financial intelligence agency AUSTRAC and protects investor funds through Fireblocks, one of the world’s largest digital software managers, the company did not need to apply for an ASIC license.

Speaking about the possible regulation of DeFi products by the Australian government, Momtazi was quite optimistic, noting that the regulation is a positive step for the crypto industry and that Block Earner is ready to comply with the regulatory measures that Australian lawmakers see fit.

“The legislation legitimizes this space much better […] And so far, things have been very positive with regulation; “Establishing standards for holding assets, maintaining a minimum level of control — having all of that — is just a plus.”

Source: CoinTelegraph