You can now earn more by just parking your money on the ethereum based tokenized dollar, DAI, than by gambling on the stock market.

Yearly returns from the stock market usually average around 6%, with it some time higher, but sometime it can be -70% like during the 2008 banking crash.

That’s American stocks. Performance varies with Shanghai stocks for example currently down, while European stocks have generally stagnated for months with no real returns for savers who can put some of their funds into DAI instead.

Dai savings rate, Jan 2020

DAI now pays 7.75% a year on any amount locked in the instant savings account with the process as easy as clicking on Get Started.

Thats on Maker’s Oasis, their user friendly front facing interface which can be accessed in any browser after installing the MetaMask plugin.

You then convert your eth into dai and just send it to the dapp, with it withdrawable at any time while interest earnings go to the eth address used to deposit the dai.

The interest comes from dai borrowers who pay 9% a year usually after printing it by opening a collateralized position on the same dapp or other dapps.

Making it kind of similar to the banking system where borrowers pay savers, but instead of savers getting 0.25% in interest from credit card borrowers who pay 17%, here savers get 7.75% in interest from borrowers who pay 9%.

Both of these interest rates are variable and for now they’re manually set by MKR token holders with it unclear whether it will eventually become algorithmic.

So the interest rate can decrease depending on numerous factors that have to be balanced to keep dai pegged to the dollar.

It can also increase, especially while eth’s price increases, because then there would probably be more dai printing, and thus the interest rate would have to increase, and so savers get more.

Making this basically the fiat system in a nutshell, but based on the ethereum standard and based on smart contract code instead of old databases.

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