Interest Account

WATERCOOLER
#1

Hii there.

Im really new in the forum also in the crypto world.
I´ve recieved an email from Blockchain.com that I can earn interests with my cryptos.
I dont know how this way works, I mean… I lend my cryptos by an interest account and I get a % back.
But how they take profit from that?

I know the mainstream Banks, with our money in the accounts, they put it to work by buying stocks, lending people money to buy houses, cars, etc… and they earn money that way.

My question is, I lend my cryptos with a % back, what they earn and how they (the exchanges I think, im quite lost here) earn?

#2

Search Uniswap, DeFi, AAVE, Compound tokens and how they work. You will know how your money USDT, or even crypto is used for taking loans and getting interest like a bank without middleman like banks.

1 Like
#3

I believe your earnings come from transaction fees. Everyone is welcome to correct me if I’m wrong, but it’s my understanding that the crypto you lend is often used in liquidity pools for exchanges, and your interest is paid through a portion of the fees collected.