The recent launch by Revix of a savings vault paying out 12% a year on USDC, a US dollar-backed stablecoin, is a prime example of how decentralised finance and blockchain technology are upending the traditional finance markets.
The chart below compares the Revix Savings Vault annual returns with that of the average bank in SA and the US. Traditional offshore savings accounts don’t offer much refuge from this plight either, given the technical and legal challenges in investing in offshore accounts. That prompted Cape Town-based crypto investment company Revix, which is backed by JSE-listed financial services group Sabvest, to launch its 12% a year Savings Vault.
What if it was possible for that customer to securely lend their savings directly to others, earning the full +5% return in the process? Facilitating exactly this kind of direct transaction between people while eliminating intermediaries, is what DeFi is making possible. Stablecoins are designed to be a middle ground between traditional cryptocurrencies and fiat currencies like the US dollar. While they’re still a type of cryptocurrency and can be used as a form of payment, they don’t experience the rollercoaster of ups and downs.
RevixInvest Upending indeed 😂