Australian fintech company Block Earner has officially gone live, offering everyday investors a 7% fixed rate investment product by utilizing decentralized finance (DeFi) technology.
Block Earner has already attracted attention from big names in the crypto industry, finalizing a $6.4 million seed funding round in December last year. It was led by Framework Ventures and joined by Coinbase Ventures, DeFi Alliance, LongHash Ventures and crypto veteran Kain Warwick, the founder of Synthetix, an Australia-based crypto derivatives exchange.
Jordan Momtazi, the co-founder of Block Earner, said in an interview to Cointelegraph that Australia’s current economic climate makes products that offer yields on savings attractive, especially when it is practically impossible to achieve similar returns using methods offered by traditional financial institutions.
According to a survey conducted by Block Earner and Sydney-based market researcher Pure Profile, 86% of Australians surveyed have noticed the recent effects of inflation and 22% surveyed are concerned about how they will make ends meet considering the rising price of goods and services.
Comparing the difference between the benchmark of returns between traditional finance and DeFi, Momtazi said:
“The best returns Australians can get from a traditional savings account ranges from 0.1-0.3% — compare that to a 7% product like Block Earner, it’s easy to see where people are going to end up.”
Momtazi continued to say that the entire point of Block Earner is to make sure that everyday Australians have access to new technology without doing any “heavy lifting” so that they can grow their savings over time.
Block Earner works by converting Australian dollars into a United States dollar stablecoin called USD Coin (USDC). Block Earner lends that USDC into two primary DeFi protocols called Aave and Compound, which provides investors with a yield.
It is also worth noting that Block Earner is the first fintech company to…
