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. bor&%#

https://wirexapp.com/en/x-accounts
https://community.wirexapp.com/t/faqs-x-accounts/23302

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[MiddleEuroAsia]

Martin Everson said:
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. bor&%#

https://wirexapp.com/en/x-accounts
https://community.wirexapp.com/t/faqs-x-accounts/23302
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"*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/https://www.gemini.com/earnhttps://celsius.network/https://crypto.com/earnhttps://blockfi.com/https://www.youhodler.com/https://swissborg.com/smart-yield-account
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]

maxmmm said:
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?
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Exactly thu&¤#

MiddleEuroAsia said:
"*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,
Click to expand...

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

Martin Everson said:
Seems they use USDC for your fiat x-account.
Click to expand...

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[MiddleEuroAsia]

maxmmm said:
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?
Click to expand...

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]

Martin Everson said:
Thats what I stated in first post...lol...i.e:
Click to expand...

I know smi(&%,

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]

MiddleEuroAsia said:
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).
Click to expand...

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

MiddleEuroAsia said:
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).
Click to expand...

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

https://www.lynalden.com/blockfi/

Last edited: Jul 2, 2021