LATIN AMERICA AMONG THE CRYPTO MARKETS WITH HIGHEST YIELD RATES
The crypto regional exchange offers up to 15% annual rates for users who want to generate interest on their cryptocurrency investments. That is much more than the figures provided by international companies in the developed market, where prices often reach 9% per year.
New customer searches, re-investing and growing Latin American users' interest in crypto are some of the reasons for the region's aggressive yields of regional exchanges, several firms told CoinDesk.
In April, Bitso, the leading Latin American crypto trading company, introduced a 15% yield factor in USDC, USDP and BUSD stablecoins and up to 6% in bitcoin. The service is available to the company's 4 million users in the four countries where it operates, Mexico, Brazil, Argentina and Colombia.
“Latin America is one of the regions with the highest adoption of crypto. That enthusiasm is reflected in the yields of the trade, ”Bitso policy chief Julián Colombo told CoinDesk.
To earn up to 15% on stablecoins, Bitso uses Decentralized finance (DeFi), including liquidity, mining and staking pools, Colombo said, without disclosing details.
Lemon, an Argentine exchange that reached more than 1 million users in May, offers interest rates of up to 13% on DAI and 12% on USDC.
“In Latin American countries like Argentina, people put the US dollar as one of their savings. That's why they find stablecoins as one of the most attractive alternatives, "Santiago Di Paolo, a community leader and research at Lemon, told CoinDesk.
The production rate of Crypto in Latin America is higher than that of most US traders, such as Hodlnaut, Crypto.com, Gemini, Coinbase or Celsius, which offer an annual interest rate of 5% to 9.45% on stablecoins, according to their pages. web.
In October 2020, Buenbit, Argentina-based exchange operating in Peru and Mexico, became one of the first Latin American companies to start offering profitable profits with stablecoins. The forum provides its 700,000 users with an annual value of up to 8.25% in DAI through DeFi agreements such as Compound, Agustín Liserra, Buenbit's chief financial officer, told CoinDesk.
"We have decided to give users almost every refund offered by DeFi, to the many people in the crypto world - and at the same time, it has been a competitive and attractive product for users already working with crypto. Ecosystem," Liserra said.
Belo, Argentina exchange with more than 170,000 users, offers an annual return of 8.5% on DAI and USDC, 5.25% on BTC and 4% on ETH.
“Our users are diverse, especially in the bull market. It's not just people from the crypto world who are joining, but people from different backgrounds, "Manuel Beaudroit, CEO of Belo, told CoinDesk.
Changes after Terra's crash
However, Terra's implosion and bearishness in the crypto market affected the Latin American trading yield.
Buenbit and Lemon used to offer up to 18% annual profits to users participating in UST via Anchor. Now, both companies have renamed the former UST to USTC in their operating systems, but its sales, trading and storage are suspended.
Both companies have written a new LUNA token and started sending it to those who had previously invested in the luna classic (LUNC) and ust classic, they told CoinDesk.
"After the Terra crash, the reliance on the crypto ecosystem was, in general, slightly undermined," Liserra said.
Lemon Pau's Di Paolo said the fall of Terra "has created a situation where users pay close attention to studying each project before investing their money and are aware of its progress."
Terra Debacle not only affected transactions listed in the UST stablecoin list, but also created mistrust among users across the Latin American crypto ecosystem, he said.
Bitso, who did not list the embarrassed stablecoin, received questions from various users, Colombo said. So did Belo, who also did not write UST.
"The way crypto markets tend to behave, in a few months, if the market goes up, no one will remember this," Belo's Beaudroit said.