Huobi’s new saving account will offer new users up to an 88% annual yield on their crypto holdings
Huobi Defi Labs have announced the introduction of a crypto savings account. The service will have no downtime, allowing customers to withdraw and deposit anytime.
Each account will have a cap of 3,000 Tether and the account will pay interest on a daily basis — new users could enjoy an 88% annual yield upon signing up according to the company.
The vice president of Huobi Global Market, Ciara Sun, shared that the development of the new product was based on need and user sentiment regarding how to best use cryptos when they aren’t being traded.
“We have a lot of users who want to keep their assets in one place and want to earn a good profit worry-free. We hear their demand loud [and] clear, we react to it fast.”
Huobi is clearly listening to its users, but there are regulations in many nations that prevent people from using the new service. For now, users from China, Hong Kong, Japan, Singapore, the UK, Germany and the US are not eligible.
Furthermore, the service isn’t active on Huobi mobile, which is expected to come out at a later date.
Pushing DeFi forward
The capability of DeFi is growing its potential to spur wider global adoption of crypto and blockchain technology. In response, Huobi established Huobi Labs to specialise in DeFi incubation and development.
Huobi has successfully formed the Global DeFi Alliance that consists of various DeFi developers and service providers. Notable members are MakerDao and Compound, the company behind the COMP token that is partially responsible for the DeFi boom in recent months.
The consortium shares the same ideology and standard, to create “fair, efficient, transparent, safe and globally accessible financial markets,” according to Robert Lesher, the founder of Compound.
Together, the purpose of the alliance is to push the adoption of DeFi worldwide under universal standards. For the moment, there is still a lot to be worked out – with national regulations being one of the biggest hurdles for DeFi adoption.
Many nations oppose cryptos, so the DeFi ecosystem is likely to be equally unwelcome in nations like China and India, who have opposed the use of cryptos. As cryptos become more popular globally, this anti-crypto stance may prove to be a liability, as blockchain development isn’t synonymous with crypto infrastructure.