Vesper Finance, the Defi project now allows users to deposit Ethereum and earn interest in other cryptocurrencies thanks to its new Earn product as we are reading more about in today’s altcoin news.
DeFi lovers can now deposit ETH and earn interests on stablecoins like DAI on Vesper Finance which rolled out a new batch of crypto pairs via which the users can mix and match the deposits and interests. Vesper is a lending platform that allows users to earn interest in various crypto assets but before today, the interest could be earned in the same cryptocurrency as the deposit. Ethereum deposits meant the interest was paid out in only Ethereum for example. The new product is called Vesper Earn and users can now deposit Ethereum, DAI, or wrapped Bitcoin as well as earn interest in a mix of those or Defi Pulse Index tokens. The DPI token is akin to the Defi index fund with one token giving holders exposure to 18 different blue-chip DeFi tokens including the governance token VSP.
A big ending to the week!
– Vesper Earn pools! $ETH <> $DAI, $WBTC <> DAI and…
– …featured pool DAI > $DPI!
– Amazing new UI
– @0xPolygon integration
– Aggressive $USDC poolA special edition of our weekly wrap-up featuring #VesperSeasonTwo!https://t.co/uhCh9lM9t2
— Vesper Finance (@VesperFi) December 17, 2021
The pools available for the feature include DAI for ETH, WBTC for DAI, and DAI for DPI. Vesper’s co-founder Jeff Garzik said that more pairs will be released in four to six weeks:
“We first wanted to cover the biggest HODLers with Bitcoin and Ethereum holders.”
The interest can be claimed at any time or it will continue to compound until you decide to withdraw the yield. In traditional finance, it will be similar to depositing dollars at your bank and earning pounds, yen, or euros. Though the same procedure was possible before the Vesper Launch, the obstacles needed to overcome were tenuous for most DeFi users. Executing these multi-stepped processes can be highly expensive because of Ethereum’s gas fees. The users also have to be aware of liquidation risks so if the price of ETH deposited falls below the collateralization ratio, you could lose your money. However now, all this is taken care of by Vesper as Garzik noted:
“it’s all about automation to lower fees.”
📺👀 — The wait is over! The #VesperSeasonTwo app experience is live on https://t.co/hkJSJvIiit!#DeFi $VSP pic.twitter.com/AhRTk3CkxM
— Vesper Finance (@VesperFi) December 17, 2021
In terms of interest rates, they are variable as the team’s automation strategies are getting into the optimal rates on the market. Users can earn higher rates by selecting pools labeled as aggressive where three exists one for DAI, Ethereum, and WBTC. Vesper Earn is only one aspect of what the team is calling Season 2.
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