Protocol-backed investment accounts are a paradigm shift

Decentralized financial protocols are positioned to compete with the new wave of FinTech banks and financial applications that are looking to make investing easy. However, they are not merely iterating on the existing products but providing a wholely new experience that represents a paradigm shift. With "high" yield savings accounts reaching a meager 2.5%, an opportunity exists for these DeFi applications to provide a crypto-native means of earning higher yields such as staking to secure PoS protocols, providing liquidity in automated market makers, or lending in decentralized money markets.

Why it matters

• If the inherent technical nature of DeFi protocols can be abstracted away where users can simply deposit money and see their account grow, then they will have the potential to reach the mainstream because of the tangible nature of their benefits as anyone can understand earning higher interest rates.
• Not only are users benefitting, but by securing a base layer protocol or adding liquidity users are performing valuable work for these networks. This will not only increase security but the usefulness of many of these applications.