The decentralized finance segment continues to fire on all cylinders. DAI lending has always been lucrative yet it appears that the deposit rates will only go higher from here on out.
It is uncanny how stablecoins can yield extremely high interest rates in DeFi.
The DeFi Interest Rates Continue to Rise
Especially DAI, the decentralized pegged currency on Ethereum, has proven to be very lucrative.
With rates often starting at 6% or more, there was a big initial interest in this venture.
It now seems that the interest rates are on the rise and hitting double digits.
This will, of course, depend on which platform one uses to maximize their DAI earnings.
So far, it seems that Aava is leading the pack with a 12.8% annual interest rate.
Other service providers will have to follow suit to remain competitive.
For a new industry such as DeFi, these interest rates will undoubtedly attract a lot of attention.
Everyone wants to make money during a bull market.
Locking up funds in search of higher prices and earning interest on the DAI generated by doing so is like a double victory.
That is, assuming people expect the Ethereum price to keep going up over the coming months.
Bullish momentum in the cryptocurrency space can often change course when people least expect it.