Mindblown: a blog about philosophy.

With so much choice, it can be difficult to make up your mind about which protocol to use. Like anything, it is a matter of weighing up the risk and having a clear goal in mind. Naturally, the least risky options are the more established platforms that insure customer funds. Generally speaking, this means centralized…

Compound Compound is an algorithmic, autonomous protocol backed by Coinbase. The difference is that interest rates are “floating,” meaning they fluctuate constantly according to supply and demand. A range of tokens are supported including ETH, DAI, UNI, BAT and WBTC, with the best APY at present 9.8% for USDC. dYdX dYdX supports many of the same assets…

Crypto.com Crypto.com is a user-friendly platform that offers some of the best rates in the industry. An assortment of crypto tokens are supported, with interest paid weekly in the staked asset. Annualized rates of 1.5%, 3% and 4.5% are offered on cryptos locked on a flexible, one-month, or three-month basis, while supported stablecoins offer respective rates…

One of the biggest attractions of crypto’s yield-bearing products is that they offer higher interest rates than banks. On the face of it, this sounds like great news but remember interest rates are the price of money, or put another way, the rates reflect risk. There is price volatility; even the most liquid cryptocurrencies (Bitcoin,…

The choice between Hard or Soft Staking comes down to the trade-off between the flexibility of access of Soft Staking vs much the higher rates but constraints of a lock-up period. If you opt for Hard Staking and the asset you have staked appreciates over the lock-up period you win twice – higher interest plus…

All crypto-earning CEFI products require users to “stake” their digital assets in order to earn interest. Staking is the equivalent of depositing, it comes in two forms Soft Staking and Hard Staking, each with different strings attached weighed up against associated benefits. Soft Staking – Funds can be withdrawn at any time, with compounding interest paid…

The crypto industry features many products – also referred to as protocols – that, like banks, are both interest-bearing (loans) and interest-paying (savings).  There is an increasing choice of passive crypto earning opportunity, but it would be incorrect to suggest that crypto earning protocols are identical to their counterparts in traditional finance.  Crypto is an…

Anyone who has ever opened a traditional savings account, obtained a mortgage or acquired a loan should be familiar with the basic concept of interest.  If you deposit savings a bank will pay you interest; the interest rate offered increases the longer you are prepared to leave your savings untouched. If you want to borrow…

Cryptocurrency has come a long way in just over a decade. As Bitcoin continues to fulfil its promise as an effective store of value its brand recognition broadens.  Whether they understand its value proposition, most people are aware of Bitcoin as something you can buy and trade, speculating that it will increase in value. Less…

What you’ll learn The basic principle of fractional banking & passive interest  The crypto version of passive interest & use of native tokens How interest rates reflect risk;  The difference between Cefi & Defi