Another blockchain, really?
Note: This post was also published on my personal website. I would prefer it if you read it there.
Disclaimer: Everything stated here is speculation and uninformed opinion based on public information. Also, I own some COMP.
Yep, another blockchain.
Last week, Compound.Finance announced Compound Chain, a new application-specific blockchain. This is an interesting announcement for any crypto-geeks like myself. I wanted to attempt to understand the strategy behind this move, so I’m going to attempt to break it down here.
Skip to the bottom if you just want the takeaways.
The Federal Reserve (Fed) recently reaffirmed that interest rates would remain near 0% until inflation increased above its 2% target, meaning that low savings rates for traditional retail savings accounts will continue to persist into the future. We’ve previously covered the importance of beating inflation and how negative real interest rates can hurt savers. According to a study by Dr. Alberto Cavallo of the Harvard Business School, Covid-19 may actually be exacerbating this problem, as changes in spending behavior have led to higher than expected inflation.
“What is the cost, at this month’s market prices, of achieving the standard of…
Now, more than ever, building an emergency fund is a relevant topic. It’s April 2020, Covid-19 lockdown is in full effect in the US and 6.6m Americans have just filed for unemployment benefits.
For those lucky enough to remain gainfully employed during this period of uncertainty, it may be a good time to revisit their savings. A lot more of us are going to be needing a fallback in the event that this period sustains for the long-term. …
I’m really excited to finally talk publicly about what I’ve been working on for the past 9 months: Linus.
At Linus, we’re helping the everyday users build wealth by making it easy to access high-yield interest rates available in digital asset credit markets.
Today, it’s possible to earn in excess of 4% APY on digital versions of the US dollar. The problem is that those yields are comparatively hard to access when considered against traditional substitutes like savings accounts, certificates of deposit and money markets. Accessing them requires: