Product

Block Earner launches DeFi platform for the masses to help beat inflation

17 Mar 2022
Most Aussies recognise a general increase in prices in their daily lives (86%), and one in five (22%) don’t know how they will make ends meet according to new study by Block Earner / PureProfile
Sydney, Australia, 17 March, 2021 – New DeFi savings online platform Block Earner, designed to help everyday Australians grow their savings faster, is launching today. Block Earner is accessible through a web portal, and a mobile app will also launch in the upcoming weeks, and is the first fintech in the world offering a direct connection with Aave and Compound. Backed by major VC players Coinbase Ventures, US-based Framework Ventures and Australian crypto veteran Kain Warwick, Block Earner closed a 6.5 million AUD seed funding round in December to bring DeFi to the masses.
What Block Earner offers
Block Earner will offer users 7% fixed, or up to 18% variable yields, where interest rates are stuck under 1%. With inflation at 3.5%, and record low interest rates, Australians are technically losing money. Already, more than one in five Australians (22%) say they don’t know how they will make ends meet, as most recognise a general recent increase in prices (86%), suggesting there is a case for new financial services, and alternatives to banks.
BE WEBAPP.jpg
Via a simple interface, Block Earner users are able to deposit Australian dollars into their account within minutes, which are then converted into USD coins (USDC), a stablecoin pegged to the US dollar, providing a stable environment for users’ money. Block Earner is the first consumer fintech in the world that offers a direct connection with the most trusted, and regularly audited DeFi platforms Aave and Compound. The platform allows for seamless AUD deposits or withdrawals without lock-in periods, and the account is free from management fees. An exchange fee applies when funds are converted to USDC and vice versa.
Block Earner uses Fireblocks, an ISO and SOC2 certified asset custodian in the background to protect users’ funds and digital vaults, and it is registered with AUSTRAC, the Australian government agency monitoring financial transactions and identifying financial crime and fraud.
Currently integrated with Ethereum-based solutions, Block Earner plans to broaden its scope in 2022, considering other Layer-1 and Layer-2 solutions such as Avalanche, Polygon and Optimism.
Financial apps built in DeFi are proving to be increasingly attractive. Australians with a good understanding of DeFi already host some of their savings there (12%), or are planning to do so in 2022 (26%).
Charlie Karaboga, CEO and Co-Founder at Block Earner says: “There are only 4 million wallets using decentralised finance platforms around the globe right now. We designed our fintech with a user-friendly interface that builds a bridge and drastically simplifies access to DeFi platforms. In doing this heavy lifting, we are hoping to encourage many more people to use DeFi platforms, and boost overall awareness and adoption of DeFi’s benefits.”
The case for DeFi savings platforms
Australians are stuck when looking for ways to grow their money. Many are disappointed by bank interest rates that they consider too low (48%), and are looking at ways to grow their savings faster (41%). A large majority of those who are not looking for alternatives also said they don’t know where to look, or think it is too complex (60%), suggesting they may change if they knew how to do so.
Others are unaware of the current climate, thinking inflation is either stable or decreasing (28%), or have no idea what interest rates they get with their banks (26%). This is fairly in-line with the 35% and 24% of respondents that said they have a limited to no understanding of inflation and bank interest rates respectively. At the same time, the majority recognise that they’ve seen a general increase in prices in recent months (86%).
Charlie Karaboga says: “Australians stashing cash in traditional savings accounts are seeing the value of their hard earned money fall in comparison to the rising cost of goods and services. At the same time, those searching for solutions seem unable to find reliable and long-term alternatives to disappointing traditional interest rates. DeFi offers a safe middle ground, where people get much better returns than traditional savings’ products, without the volatility risks that come from typical crypto or share trading. With regular education about DeFi, we are convinced that people will see a relevant proposition to strengthen their financial health in the months ahead, and Block Earner is the bridge that can easily connect them to this world.”
Study methodology The survey was commissioned by Block Earner, and administered by PureProfile. It was conducted in February 2022 among a sample of 1,000 Australians, representative of the population.
Corporate

Block Earner Relieved of Liability to Pay a Penalty

Block Earner Relieved of Liability to Pay a Penalty in Significant ASIC Case

04 Jun 2024
Corporate

Court Dismisses Part of ASIC Case Against Block Earner Products

Federal Court of Australia judgment delivered in Australian regulator ASIC’s case vs Crypto Startup Block Earner.

09 Feb 2024