Passive crypto income to benefit billions
Blockchain and digital assets are gradually changing how we earn interest.
February 25, 2020 / 08:39 PM IST
"Passive Crypto Income Can Benefit Billions of People," Lennix Lai, Financial Markets Director of Cryptocurrency spot and derivatives exchange, OKEx, said at the Blockchain Economy Istanbul Summit, held recently.
"Blockchain and digital assets are gradually changing how we earn interest. The mainstreams define the social capital on how the interest rate allocates and take banks as the core information and credit intermediates," said Lai. "Moving forward, based on PoS and DPoS, as well as DeFi lending, it will potentially derive new products that provide interests on a regular basis. This can be mutually beneficial to the traditional financial system, and hence bringing billions of users the advantage of obtaining passive income."
Traditional financial system has recognized challenges with high operational costs. The era of low interest rates has brought undesirable side effects to the real-world economy, especially to banks, who pay extra to store excessive reserves but are unable to pass on negative rates to depositors.
Blockchain, hence cryptocurrency, where smart contracts hosted on blockchain, results in trading finance at reduced cost. Permissionless financial instruments drive down 99% of barrier to create and issue bespoke tradable contracts for anyone to hedge, trade and earn. OKEx Pool now supports staking of 8 mainstream tokens including EOS, ATOM, DAI, and VSYS, etc., with interest rates of as high as 15%.
OKEx has a DeFi vision in building a frictionless economy. To take the first step, OKEx recently launched OKChain, the commercial public blockchain which supports the creation and release of DeFi applications from users. At the same time, OKEx also rolled out OKEx DEX, the exchange's decentralized exchange the first application on OKChain to deliver a better trading experience and liquidity.