DeFi Rewards on Fiat Deposits: How Scallop Earn Accounts Work

Traditional banking middlemen extract a great deal of value with people earning only fractions of a percent of interest on their savings in checking accounts. With interest rates cut to just 0.1% by the Bank of England, people are now receiving very little interest from traditional banks on their monies.

Enabling Change: Greater Access to De-Fi

De-Fi has now enabled anyone, anywhere (with an internet connection) to earn high yields (from 6–15%) on their savings. So far, this has only been possible for people to access on specific decentralised exchanges or platforms. However, Scallop is pioneering mainstream access to this high value sector of crypto. Our technology enables users on the frontend to more easily interact and navigate these protocols, all from the comfort of the Scallop app.

With a Scallop Earn account, users will be able to deposit fiat — which will be converted into stablecoins on the backend — and directly access the high yields available from leading DeFi protocols such as Compound, Aave, dYdX, Curve and Yearn Finance to name a few. Users will be able to earn interest on both fiat and cryptocurrency and have the option to choose several APY rates directly from the Scallop application. Scallop Earn Accounts will be available to individuals, businesses and institutions.

Borrowing and Lending

As is currently possible on leading De-Fi protocols, most notably Compound, users can deposit cryptocurrencies as collateral to borrow crypto loans.

Scallop Earn Accounts will also enable this feature and users will be able to borrow loans or lend out to others, directly and seamlessly from the Scallop platform. Supported collateral currencies will include: BTC, ETH, LTC, AAVE, COMP, DOT, ADA and SCLP itself.

After depositing the required collateral into the DeFi protocol, the user will receive their loan instantly (thanks to verification by smart contracts) in their crypto wallet. Supported loan currencies will include USDT, USDC and ARTH.

Fully Licensed and Fully Regulated

With full authorisation in Electronic Money Derivatives (EMD) from the Financial Conduct Authority (FCA), Scallop is fully compliant with necessary banking and financial regulations to act as an EMD for an Electronic Money Institution (EMI) in the UK and Electronic Money Intermediary in Europe. As such, Scallop can offer its Earn Accounts to 747 Million users across the EU and UK, and users can deposit with a peace of mind that their monies are fully protected in a fully regulated and compliant platform.

About Scallop

Scallop is a licensed & regulated banking institution offering a comprehensive suite of innovative banking products. Scallop’s next-generation products were launched to approximately 1.5 billion potential customers in the UK, EU, Canada, and UAE, where Scallop currently holds banking and crypto licenses. There are plans underway to expand into other regions soon.

To learn more about Scallop, visit https://linktr.ee/scallopofficial