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HaruBank — Competitive Interest Rate With a Noteworthy Business Model

It is amazing to see how the emergence of blockchain and cryptocurrency has paved the way for the creation of different innovations for different purposes. One industry that is getting a facelift with the adoption of emerging technologies is the finance industry, and since the inception of crypto, several blockchain-based fintech use cases have been created.

The concept of decentralized finance (DeFi) has left the drawing board to become a real and functional system, with several DeFi springing up and creating a level playing field for both the banked and unbanked to get access to financial services. HaruBankis a successful blockchain-based digital asset finance service platform that was created to help users get access to seamless digital asset depository services.

Business Model

A lot of crypto lending platforms are designed such that when crypto is deposited, interests are earned on borrowed crypto. However, in order to mitigate the risk of loss as a result of the crypto market’s high volatility, many crypto lending platforms have adopted the business model where the borrowers are required to deposit more than the loan they intend to take. The flaw in this business model can be detrimental to both the borrower and the lender, because while the borrower is forced to pay more than was borrowed, the lender may get little or no profits on the amount that was deposited.

However, HaruBank has proven to be an efficient and effective alternative to other crypto lending platforms with its unique framework that involves the implementation and facilitation of an asset management process, as well as institutional loans. This business model involves a combination of arbitrage trading, quant trading, and investment diversification. It may interest you to know that HaruBank is able to achieve this as a result of its partnership with different reputable asset management partners.

HaruBank’s business model offers enhancing stability so crypto market’s volatility will not affect depositors and other users of the platform.

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Interest Rates

HaruBank offers interest rates that are competitive, and even though there is the ‘no lockup’ option, the interest rates are still very competitive as opposed to what other platforms offer. It is imperative to have the ‘no lockup’ requirement, because some investors may get so anxious when the crypto market’s high volatility comes into play. HaruBank provides as much as 15% monthly interest rate on deposits of ETH, BTC, Terra KRT, and USDT. Below are some competitors and their interest rates:

· Nexo (8% interest on fiat deposits)

· Celsius Network (7% interest a year)

· Blockfi (varies from 4.9% per year on BTC, to 8.6% per year on USDC)

· (Between 8% per anum on crypto, to 12% per anum on stablecoins like USDT)

· Dharma (4.6% APR)

· Bank of Hodlers (Interest rates vary from 3.04% to 11.57%)

· Trinito (11% utilization rate, and 3% interest rate)

The aforementioned competitors operate with the lending-borrowing model as opposed to HaruBank’s asset management model, and one of the downsides of the lending-borrowing model is the low-interest rates that they are able to offer.

In the crypto community, asset management has become a sought-after business model to help crypto depositors/investors consolidate their diverse crypto investments, while also providing interests on deposited funds. HaruBank’s adoption of the business model takes away the stress of thinking about your crypto deposits when the crypto market begins to fluctuate.

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