wp-plugin-hostgator
domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init
action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114ol-scrapes
domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init
action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home4/scienrds/scienceandnerds/wp-includes/functions.php on line 6114Source:https:\/\/techcrunch.com\/2022\/05\/23\/pebble-crypto-stablecoins-gift-cards-yield-traditional-banks-finance\/<\/a><\/br> As equities continue to trade down from recent peaks, investors are searching for higher returns. Some have turned to the crypto-based decentralized finance (DeFi) realm, where yields from lending and staking cryptocurrency can range from 1% to as high as 15%<\/a> for riskier projects.<\/p>\n Others are looking at high-yield savings accounts like the one from Y Combinator-backed<\/a> fintech startup Pebble<\/a>, which offers 5% annual percentage yield (APY) on all cash deposits. Pebble is able to offer these relatively high yields through the use of stablecoins, which have found themselves in the spotlight recently after Terra\u2019s UST experienced a meltdown, leading to broader instability in the crypto ecosystem.<\/p>\n But Pebble\u2019s approach involves much less risk than people have come to associate with stablecoins, co-founder and CEO Aaron Bai explained to TechCrunch in an interview.<\/p>\n Pebble users first deposit fiat currency into their accounts, Bai said. The startup then converts that cash into USDC, a digital stablecoin backed by traditional reserves of cash and Treasuries \u2014 a notably different approach from algorithmic stablecoin UST which uses a much more complex system to maintain its peg to the U.S. dollar and holds other cryptocurrencies rather than fiat currency as reserves.<\/p>\n Once Pebble converts the cash into USDC, it lends the funds out to \u201chighly regulated institutions\u201d such as crypto companies Coinbase and BlockFi as well as traditional financial entities, including hedge funds, that are willing to pay a premium to access stablecoins because of their efficiency and ease of use, Bai said. When I asked Bai whether he\u2019s concerned about users losing their money if institutions fail to repay the loans, Bai explained that Pebble lends out funds with 150% overcollateralization \u2014 meaning the borrowers put down assets worth 150% of the value of the loan as collateral.<\/p>\n
\nY Combinator-backed fintech Pebble uses stablecoins to offer 5% yield on cash<\/br>
\n2023-01-20 22:43:39<\/br><\/p>\n