Orion Money shows the banking system how to start offering 5% yields to depositors

As I explained in a previous post, Anchor, a lending/borrowing service in Terra offers a guaranteed 19-20% APR for UST deposits. Actually, it gives you a positive APR for borrowing money if you deposit LUNA, the native cryptocurrency of Terra blockchain.

Even though most crypto users would prefer to keep their assets in Luna instead of swapping them to a stable coin as UST to get a 20% yield because the price of Luna is expected to go x10 in the midterm, many traditional banking users have no clue on how to enter crypto world and they are afraid of losing their savings as all they see on the news are the price swings most cryptocurrencies do.

Yesterday, Orion Money launched as the first Defi service offering Terra benefits to Ethereum users. Basically, they will take deposits from Ethereum users into Terra, get the 20% Anchor offers, and will give back a 13-15% to their depositors in Ethereum. It is true that some advanced crypto users may prefer to do it themselves to earn the extra 5%, but keeping your savings in Ethereum blockchain and in the stablecoin you have instead of bridging them to another chain as Terra and swapping them to the UST stablecoin is something many of us would prefer to avoid.

Orion Medium article shows a comparison table where you can see how their rates beat most of the other DeFi protocols in Ethereum.

If Orion can offer those rates to Ethereum users, there is no reason traditional banks may not do the same and start to offer higher interest rates to their customers using Anchor/Terra service instead of the interbank borrowing system. If they start doing so they will speed up the crypto industry so get ready for interesting months to come ahead!

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