by Aussie fintech firm has offered a fixed interest yield on investment from Aave and Compound to Australian investors. The offer was made as the Australian fintech received over USD$6 million in seed funding.
Block Earner has launched its DeFi project. The project has leased the opportunity for investors to earn a 7% fixed interest rate on investment products and services just by using technologies developed on the DeFi protocol.
Following the significant achievement, the fintech firm has created an aura of fame and attention from key players in the digital asset industry. The attraction led to the company closing a USD%6.4 million seed funding in 2021. The seed funding was championed by framework ventures, coinbase, Warwick CEO of an Australian crypto exchanges platform, Synthetix.
In a statement issued by Block Earner co-founder, Jordan Momtazi, he said that Australia’s prevailing economic condition facilitated the achievement. He also believes the economic environment enables projects with high-yielding prospects on savings desirable.
He further said that over 80% of Australians are aware of the high rate of inflation and its effect, but just only 22% are worried on how to meet their daily needs because of the hike in prices of commodities in the country.
Leveraging the Defects of Traditional Monetary System
Momtazi noted that his company preferred decentralized finance because the traditional monetary system could not provide sophisticated features to make such a project a possibility. Therefore, he leveraged the low yield rate offered by these institutions to attract the people.
He said that the range of 0.1 – 0.3% was the minuscule interest yield on investment traditional institutions can offer Australians. That was nothing compared to the 7% Block Earner offers. This comparison makes it glaringly apparent which offer was most favorable to the people.
Momtazi revealed that the interest of Block Earner was to provide a platform where Australian investors could increase their savings within a period. Investors no longer need to be charged heavily for completing transactions on other networks.
How Block Earner Operates
For ease of understanding, Block Earner practically simplified how it operates. First, it converts the Australian currency to USDC. Then it lends the converted USDC to Aave and compound (DeFi networks), offering investment yields to investors.
Though Block Earner has assured a fixed rate of 7% up to July, Momtazi revealed that investors could still receive an 18% of their interest annually. That notwithstanding, fintech is credited to be the first fintech firm to grant entry into DeFi, integrating Aave and Compound.
Allaying investors’ fears, Block Earner assured them of risk-free transactions because the choice of USDC over other stable coins was for legitimacy and security. Momtazi thinks those two factors above are critical to establishing a long-term goal.
Furthermore, he revealed that Block Earner is a registered member of AUSTRAC. Also, investors’ funds are duly protected by the world’s best digital keepers, Fireblocks. Additionally, Momtazi noted that Block Earner fits into any policy framework should the government decide to regulate the crypto industry in Australia.
