What is Voluto?

Voluto is a savings account alternative that allows you to earn a high interest return on digital cash. We provide an easy way to access Compound liquidity pool. While traditional banks on average offer 0.05% interest, Voluto’s users can earn up to 6%. Besides, there is a lockup period or hidden fees involved.

Voluto connects your funds (digital cash) with a liquidity pools like Compound. This liquidity pool is powered by an open financial technology called DeFi. Using this financial technology (DeFi), users supply funds to a liquidity pool and immediately start earning interest without a need for someone to borrow it. On the other side, in order to access the pool, the borrower has to secure a loan with 2x the amount they borrow. After the loan is issued the borrower automatically pays interest to the pool which is transferred to you. There is no middleman, exorbitant fees, or lock up period involved.

Frequently asked questions

How can you offer such a high interest rates?

Traditional banks take your money and offer you very low or no interest at all. On the other side, they lend this money for 2 to 10% interest. Instead of giving lenders the full interest amount, which is paid by borrowers, banks provide only a fraction of it, all the rest keeping for themselves. Voluto is connected to the open digital liquidity pool on which lenders supply funds and start earning interest without a need for someone to borrow it. While on the other side, in order to access the liquidity pool, borrowers need to secure a loan with 2x the amount they borrow. After the loan is issued the borrower automatically pays interest to the pool which is transferred to you. There is no middleman, exorbitant fees, or lock up period involved.

How safe it is?

In order to access the liquidity pool, the borrower has to secure the loan with 2x amount they borrow. That means that there is always more funds (digital cash) in the liquidity pools then borrowers are allowed to borrow. Loans are over collateralized with a typical collateral rate of 200%. It means that for a person to borrow $1 he needs to put at least $2 worth of digital assets. So it is unlikely that the value of the collateral drops below the loan balance. In addition to that liquidity pools are controlled, audited and overseen by the network and 3rd parties which provides security and assurance that liquidity pools work as planned. You can read more about Compound audits here and here. Moreover, We secure the app with Apple Passcode, Face ID or Touch ID, so only you have access to it.

Where does my money go? And what is a liquidity pool?

After you make a bank transfer, our partner converts them to a digital cash called USDC. After your funds are converted to USDC, we send them to Compound and you start earning interest. When you decide to withdraw your money, USDC is converted back to EUR and sent to your bank account.

Liquidity pool is a virtual network, where people can borrow money from the pool of funds provided by lenders. Liquidity pool is powered by an open financial technology called DeFi. Using this financial technology (DeFi), users supply funds to a liquidity pool and immediately start earning interest without a need for someone to borrow it. On the other side, in order to access the pool, the borrower has to secure a loan with 2x the amount they borrow. After the loan is issued the borrower automatically pays interest to the pool which is transferred to you. There is no middleman, exorbitant fees, or lock up period involved.

What is DeFi and do I have to know about it?

It’s not necessary to know what DeFi is to use Voluto. But if you are interested, we highly recommend you to read more about DeFi here and here.

In short: DeFi is a financial technology which enables global and open financial systems. A global lending pool like Compound, and Voluto, is powered by DeFi. These open financial systems are accessible to anyone wherever they are.

Recently, one of the most prominent and successful Venture Capital firms, Andreesen Horowitz invested $25m into Compound. Industry leaders call DeFi a future of finance..

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