What is Voluto?

Voluto is a savings account alternative that allows you to earn a high-interest return on your digital cash. While traditional banks pay only around 0.05% interest on average, a Voluto account can earn you up to 6%. There is no middleman, nor any fees involved and you can withdraw your funds with all your earned interest anytime.

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What’s under the hood?

To earn interest, Voluto connects your funds with a digital cash pool, a virtual money network, on the Compound platform. On one side of the digital cash pool, there are suppliers who contribute funds and start earning interest immediately. On the other side, there are people who borrow from this pool generating interest to all the suppliers.

To ensure that the suppliers’ funds are secure, borrowers must put up their own assets as collateral. Once a loan has been issued, the borrower automatically begins paying the interest into the pool. This interest is then directly distributed among all of the suppliers who have contributed to the pool.

Enabled by DeFi

DeFi (decentralized finance) is a set of decentralized technologies enabling global and open financial applications. DeFi is transforming financial products, such as savings accounts, by making them cheaper, faster, globally accessible, and significantly more transparent.

Connected to the Compound platform

Compound is a global and open virtual network of suppliers and borrowers who come together to form a digital cash pool. Once money is in a digital cash pool on Compound, it starts earning interest immediately.

Realized without intermediaries

With DeFi, there are no middlemen, such as traditional banks, who loan out the money that you deposit after taking a big cut. Instead, your funds are connected to open digital cash pools and earn interest that is distributed directly to you and all of the other suppliers to the pools.

Driven by dynamic interest rates

Interest rates fluctuate based on supply and demand. When the number of suppliers to a digital cash pool increases, the interest rate falls, incentivizing borrowing. Then, when more borrowers access the pool, the interest rate increases again, incentivizing suppliers.

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