The Stability Pool is THIS Much Better Than Your Savings Account

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By Connor
Estimated reading: 4mins
Best Crypto savings Account

I found something disturbing after doing my own research on savings accounts:

The payouts are LAUGHABLE.

Especially when compared to the returns that you could receive through DeFi, like in the Liquid Loans Stability Pool.

The highest APR that I could find on savings accounts from large banks is roughly 5.35%.

Crypto Savings Account

This may seem like a decent return, but when you consider inflation, you might barely be breaking even.

And when you consider other options, in my opinion, you're flat out leaving money on the table.

I’m not someone who can, or does, provide financial advice. I do, however, have some major thoughts on these rates.

How Much Better?!?!

As I’m writing this, the Liquid Loans Stability Pool is currently offering a 161% APR on the stablecoin, USDL.

Yes, you read that right. 161% APR.

This is roughly 31x times higher than the highest savings account that I found.

In other words, it could take you 31 years to get the same returns on your money as just 1 year in the Stability Pool at these current rates.

This may seem too good to be true, but there’s actually a reason for this disparity in earnings.

Why is the Stability Pool APR So High?

The yield on USDL comes from two sources:

  • Liquidations: Whenever a Vault is liquidated within the Liquid Loans protocol, Stability Providers pay the debt of the Vault. In exchange, they receive all of its PLS. 

This gives them an instant 10% gain on all of the USDL debt they repay. 

  • LOAN Emissions: LOAN token is paid out to Stability Providers as a reward for their services.

Yield from the Stability Pool is so high right now, frankly, because the Liquid Loans protocol is new. 

LOAN token emissions, in the first year, are the highest they will ever be. Each year, the rate of emission is halved. 

You can clearly see that the APR for the Stability Pool has been going down every week since launch. 

It was as high as 1000% in the first few weeks, but is now floating around 161%. 

But any way you slice it, a 161% APR is significantly higher than 5.3%. 

Unless the APR offered by the Stability Pool drops below 5.3%, which it seems unlikely to do for many months or even years, it simply has a higher payout than a traditional savings account.

Beating Inflation

For financially conscious individuals, beating inflation is the name of the game.

Every year, fiat currencies across the world are devalued due to an ever increasing supply of that currency.

This is compounded, especially in the United States, by a decreasing supply in production of the ‘stuff’ that people want to buy.

The result is often that fiat currency savings become worth less and less. 

A great way to counteract this problem is by earning yield on your cash, but a high-yield savings account may do little more than break even. 

While you could turn to the stock market, this may not be ideal depending on your own risk tolerance or in situations where you need fast liquidity.

That’s where holding savings in USDL and staking in the Stability Pool can be a great solution.

How to Start Your Crypto Savings Account

You can start your crypto savings account easily and start outperforming all of the mainstream, traditional offerings.

To get started, you would just need to buy USDL, which is a fully-backed stablecoin tied to the price of the US dollar.

After you’ve done that, you can go to the Liquid Loans dApp and place your USDL in the Stability Pool.  

It’s literally that simple.

Why let a bank take you for granted when you can be your own bank?

With Liquid Loans, you can make your money work the way you want it to.

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Disclaimer:Please note that nothing on this website constitutes financial advice. Whilst every effort has been made to ensure that the information provided on this website is accurate, individuals must not rely on this information to make a financial or investment decision. Before making any decision, we strongly recommend you consult a qualified professional who should take into account your specific investment objectives, financial situation and individual needs.

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Connor is a US-based digital marketer and writer. He has a diverse military and academic background, but developed a passion over the years for blockchain and DeFi because of their potential to provide censorship resistance and financial freedom. Connor is dedicated to educating and inspiring others in the space, and is an active member and investor in the Ethereum, Hex, and PulseChain communities.

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