How can you earn more interest on your fiat money than by keeping it in your bank account? This article looks at how this can be done via crypto lending.

The issue with banks

Banks are not paying interest to their clients. There is a simple reason for this—central banks have pushed interest rates very low in the hope that this will stimulate the economy. The low-interest rates mean that savers will not receive interest payments either. We will not go into detail here why the central banking low-interest-rate policy is wrong.

However, let’s mention the following: a free economy should mean that interest rates are set on the free market as well, not by the Soviet-style “politburo,” which are now called central banks. Our view is that economic recessions are created exactly through the central banks, which are fiddling too much with interest rates. This fiddling results in the usual credit oversupply, which results in investments into nonproductive projects, which cannot bear their costs of capital, which then leads to a recession.

How do you earn interest with fiat money?

There is a very simple alternative available:

  1. Convert some of your fiat assets into crypto.
  2. Crypto can be volatile against the USD (or, actually, the USD is volatile against the crypto). Therefore, the safer bet would be to use stablecoins; for example, the algorithmic stablecoin DAI, which is pegged 1:1 to the USD.
  3. Create a Personal Fixed Income Fund in It will automatically invest in crypto loans. You will earn interest, which is automatically reinvested.
  4. You can terminate your Personal Fixed Income Fund at any time and withdraw your funds.
  5. After that, you can convert your funds back to fiat.

Personal Fixed Income Funds is a DeFi product; it is a non-custodial platform. Savers create Personal Fixed Income Funds where they deposit their funds, and the rest runs automatically. When users want to withdraw, they stop the Personal Fixed Income Fund process and withdraw their funds (plus accumulated interest).

Savers can create a DAI savings account by creating a DAI Personal Fixed Income Fund. Borrowers, on the other hand, submit loan requests. The Personal Fixed Income Fund accepts these requests and invests in the loans.

The loans are protected with crypto collateral and the Loss Provision Fund. If borrowers default, then their collateral will be liquidated, and the proceeds will be used for the principal and interest payments.

The Personal Fixed Income Fund will accumulate interest and reinvest. That’s how a DAI savings account is created on the blockchain.

About is a peer-to-peer crypto lending solution, co-founded by two ex–Credit Suisse vice presidents and CFAs (chartered financial analysts). The key problems this platform solves are as follows:

  1. Borrowers today have too high collateral requirements(i.e. Maker, Compound have a ca. 350%–400% collateral ratio), meaning their capability to borrow is low.
  2. Limited choice of collateral:  Borrowers on Maker or Compound have limited choice of collateral (just 4 or 8 tokens).
  3. Lenders cannot transfer their loans(or parts of the loans) to other parties during the loan term.
  4. Other platforms would like to earn revenues with value-adding services(like credit as an API service).
  5. Investors would like to earn passive income(with no activity).
  6. The majority of existing solutions control the client’s private keys. For example, Nexo or Celcius are technically online investment platforms that control clients’ assets. They can take clients’ funds at any time, and in return, they pay interest to the client. The client can withdraw his funds, but technically Nexo/Celcius have custody of the client’s funds. This results in the “honey-pot” risk. offers the following solution:

  1. Noncustodial lending: Only borrowers/lenders control their assets; no one else has access to the borrowers/lenders assets.
  2. Borrowers have 2x smaller collateral requirements.
  3. Borrowers havea wide choice of collateral.
  4. Lenders receive loan tokens after creating loans. Lenders can use these loan tokens as a mean of payment (loans are tokenized and transferable).
  5. Holders will receive interest for the loan tokens (interest-bearing to the holder).
  6. Passive Investors will havePersonal Fixed Income Funds, which enable passive income on the investor’s assets.
  7. Non-custodial API for other platforms—wallets, payment engines, marketplaces.