ZeFi provides a non-custodial wallet that enables you to earn yield by supplying digital dollars (stablecoins) to open money markets like Compound liquidity pool. Your deposits are lent out to borrowers who deposit collaterals with more than 150% collaterization ration to get access to USD without selling their assets and risking future gains. Yields on the Compound liquidity pool in the past have ranged from 3-9% APY, but there are no guarantees that those numbers will continue. On Compound, borrowers deposit collaterals with more than 150% collaterization ration to get access to loans.
What exactly is DeFi ?
Decentralised Finance, or DeFi, is an open financial system that adopts traditional financial instruments in a peer-to-peer network that limits.
Is ZeFi FDIC insured?
ZeFi is built on top of protocols that has more than 2 billion dollars of funds locked. Though we are not FDIC insured. The principal amount deposited by users are converted to stable currency DAI, which insures the deposit amount is always pegged to USD. The deposits are lent out to borrowers who deposit more than 150% in collateral. ZeFi is insured against smart contract risk through smart contract insurance.
Are the interest rates variable ?
Historically, the interest rates on DeFi protocols have ranged from 3% to 10% APY. The interest rates depend on the market forces and are subject to change depending on the supply and demand for collaterized loans.