Less than 15%, are you crazy?“”, I hear you say, “15% is great”.
Well, I think, it is great, but it’s not what will make choise.com better.
WHY? People are frightened they may loose their money because of another stablecoin collapse!
Then what? We do need new customers!
My suggestion would be: offer people an annual yield of 7 -9 percent and guarantee those people a 100% PROTECTION on their funds, like the European banks do up to 100.000 euro (but of course this could be less).
Then, let some reputable institution do an audit and start marketing:
8% annual yield ons USDC with 100% fund protection*
*Audited by PwC.
Do you think this proposition will attract more new customers than the current one?
Do you think it is wise to sacrafice some yield for more protection of your funds?
Yes people putting crypto into these saving accounts need to know the risks involved. And they also need 3rd party assurance eg audits would definitely help. A decrease in the returns is not a must, only in case the difference would be needed to cover the extra costs. Transparency is no 1 and if not there money will not come in. People will not put big money into Choice just on promises or declarations …
You need to look at competitors around you to be able to cone to that conclusion don’t just assume your customers do not know about other offers, especially with global participation. Hence, in high inflation environment like we have now the APY must be relatively high as the stablecoins are evenly squeezed. So, that 15% can look great if the average crypto market return on stable coin is lower than that. For green horn like us, let be a bit above average.