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Yotta: Bringing The Best of Terra (Luna) Network to America
If you're wondering what 2022 is going to look like in the crypto space than I have a feeling that Terra (Luna) Network will continue to drive home some pretty big changes in this space (not financial advice). Even as crypto takes a massive dive Luna puts on the breaks and turns green in an amazing U-Turn proving it is popular amongst investors and enthusiasts a like.
Terra (Luna) Network born in South Korea has set a new bar for cryptocurrency and what it means to the financial sector as a whole. I recently trialled Anchor protocol to see how easy it was to lend and borrow money to fund my weekend which can be seen in this Leo Finance Post.
I have to admit being an Australian the ease of accessibility to being able to deposit and withdraw funds is an advantage I know many do not currently have but things are beginning to change not only on the policy front from many nations but for services that enable withdrawals.
Yotta The Savings and Rewards dApp
Image Source Yotta
Currently available on the Google Play Store and Apple Play Store is the savings protocol built on Terra (Luna) Network which also doubles as a rewards card. Every time you deposit cash into your account with a minimum of $US25 per transaction you automatically receive a ticket to entre their rewards program and a chance at winning US$10,000,000.00.
Users are also able to open up a number of accounts within their app which is referred to as buckets and support people to reach their financial savings goals. An interesting fact that Yotta states is that over 40% of Americans do not have a spare $400 aside in the event of an emergency.
Allocating funds to buckets will boost the savings account to 4% APY and the funds once placed in a bucket are FDIC insured giving savers piece of mind. Yotta claims their savings account is one of the highest for stable yields a point I would like to return to a little later in this article.
Prizes for Saving
There are also a large range of different prizes to be won simply by participating with the savings protocol and saving money. Soon there will be a debit card associated with the dApp that will enable purchasers who use the card to not only win rewards but have the chance to have their purchases refunded in full.
The Lucky Swipes initiative which is a 1 in 250 chance and by referring people you also increase your odds to 1 in 100 for 30 days. Yotta is also offering a 1 in 5 chance to have your purchase covered if you purchase items at one of their Lucky Deal merchants.
Instant Withdrawals
One of the biggest advancements that I think will provide an incentive for people to use the service is the ability to undertake Instant withdrawals which provide people the ability to withdraw up to $US10,000 a day into a linked debit card.
The first 30 days of a new account will come with a $2000 a day maximum with a weekly $4000 maximum and all withdrawals attract a 1.5% fee and any transaction less than $33.33 attracts a 0.50c fee. Yotta claims that funds will be cleared within 30 minutes however, depending on your bank this may take longer.
How Does Yotta Stack Up?
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When viewed on paper Yotta is the clear winner against these banks on savings accounts and there is even an option for people to enter their own banks details to see how they fair. Noting that the rates are based on purely savings and does not include Yotta buckets.
But the concern I would like to raise going back to the previous comment where Yotta claims to be one of the highest stable coins savings protocol is in my opinion misleading and false. The project having come across to Terra (Luna) Network is clearly utilising the Anchor UST yield and I would think they are utilising a number of other stable coin farms to participate in a number of different stable coin farming pools.
As we know Anchor is providing 19.50% APY on UST their stable coin and Yotta is only offering 0.2% yield so if they are using Anchor they are claiming 19.30% APY which is a significant difference between what you get and they get.
Even when placed in a bucket only offering 4% APY means they receive 15.50% APY that is assuming that they are utilising Anchor protocol for savings. One could assume that a portion of that money is being used to fund prizes and refunding of purchases but there isn't much transparency beyond that.
The project would be good for people who are not crypto savy but I can't help but feel that it is taking advantage of people not knowing and whom aren't familiar with cryptocurrency and APY.
A miss from me but no doubt many would find it useful and its ease of use will help others that may not want to get involved in cryptocurrency in full but want to enjoy some of it's benefits.
What are your thoughts?
Image sources provided supplemented by Canva Pro. This is not financial advice and readers are advised to undertake their own research or seek professional financial services