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Any self-respecting cryptocurrency investor will know the most famous decentralized protocols like Compound or Aave on the ethereum blockchain.
These protocols are money markets where there are investors who can leverage themselves by borrowing money, "borrow". That money comes from the users who lend the money, called “lenders”,
Those who leverage pay an interest for the money borrowed but if they are good and correct they multiply their benefits. On the other hand, those who lend do not run any monetary risk, since their assets are locked in a smart contract and backed by 100% of their value 100% of time, but they receive an annual interest for that loan.
Today there are centralized websites such as SwissBorg, BlockFi or Nexo, which works in a similar way to Compound, but being a centralized service, a “normal web app”.
If in Compound our greatest risk may be failures in the smart contract, in a centralized site our greatest risk is bankruptcy, hacking or negligence of the company. Therefore, you have to try to trust the best or the safest.
For example, BlockFi is backed as an investor by Coinbase, that gives me personally peace of mind, but I still know that there is some risk.
SwissBorg is currently giving around 4% annual interest, however BlockFi is giving 9.25% in stablecoins: USDT, USDC, Dai, etc.
As well. A few days ago I found an app, called Valora App, which is giving a 50% annual return in stable cryptocurrencies.
Obviously I thought it was a scam, because that profitability is impossible in an investment of this type where the market leaders that I have mentioned before, give at most a 10% annual return.
But it is that Valora App, gives that profitability in a promotional way, that is, they are losing money, and also they only allow you to enter $ 1,000 in that promotion. That is, you can have the amount of money you want in your Valora account, but the 50% profitability only applies up to $ 1,000.
This suits me much more and makes me less suspicious. But later investigating I find out who are the capital investors behind Valora and one of them is Andreessen horowitz: https://a16z.com/
And for me things change there, since one of the most prestigious investment funds in the world supports it. Andreessen Horowitz is an investment funds with more than 10 billions dollars.
In short, I have decided to enter a certain amount in the app and test it. And I decided to tell it in this article that I hope is useful.
I'll tell how it goes the next weeks o months.
Who is interested should know the following:
First of all, download the app from the link on its website to avoid falling into scams: https://valoraapp.com/es
Then once installed you have to save the seed phrase well or you could lose your wallet forever, like any other cryptocurrency wallet where we are the ones who have the private keys.
The App only works with the CELO cryptocurrency. This is a famous and big fork of Ethereum.
And we can use CUSD and CEUR, that is, 2 CELO tokens that are glued to the dollar and the euro.
To receive interest we need at least $ 10 in the account. It is not known when the promotion will end.
To put funds, the App suggests several exchanges where they charge you too many commissions from what I have read. I used KUCOIN and they only charged me 0.3 CUSD, come on, 30 cents.
Always be careful when using any financial product, the risks are diverse and everyone has to weigh it. I certainly do not recommend anyone to invest in anything, I only tell my experience and I am not affiliated with or earn anything from Valora.
I hope this article has been useful to you!
