If you know anything about financial literacy, saving your cash is an essential part. Whether to have a rainy day/ emergency fund, save for a purchase, or anything in between, keeping your hard-earned money will lead you to the financial promise land. However, we have come very far from the piggy banks and saving money under the couch (If you had a Latina grandmother, you would know this). Instead, we have online free banking and apps that you can directly save while spending it or getting paid every week or month.
No matter how you choose to save your money. The only thing we are sure of is that as of this time, banks only give 1 to 2 percent interest rates, while they can make 20 to 30 percent with it. Yes, you just read this correctly! Banks can make that much by lending your money or using it to invest in other products (stocks, bonds, insurance, among other things). Thankfully DeFi is here to save the day by giving you more bang for your buck! with Money protocols that you can ear with stablecoins like DAI and USDC 7 to 8 percent. That’s on a simple DeFi play. If you go more into the rabbit hole or degen by going into things like Terra Usd or providing liquidity, you can get 20 to as high as 38 percent! That’s a lot by doing nothing and putting your money to work. Now, of course, the higher the interest rate, the higher the risk. You may run into things such as impermanent loss and hacks, but if you are willing to be patient and take less risk, you would still be able to get better returns than your current bank account.
As DeFi gets broader and more things such as synthetic assets, automatic payable loans and non-collateralized assets, the future looks bright so ask yourself. Is saving your hard earn money in the bank worth it? And why not try DeFi? Think about it.
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