Best DAI Interest Rates

Want to jump straight to the answer? Hodlnaut offers among the highest DAI interest rates at over 12% APR!

With traditional interest rates at historic lows, people are turning to cryptocurrency as an alternate means to generate income. Crypto offers competitive interest rates with percentages unheard of in the traditional finance industry. By cutting down on overheads and working directly with blockchain technology, crypto platforms can offer higher interest rates. Also, these platforms often feature low- or no-minimum lock-up periods on crypto funds. There are lending rates on some platforms while others use a volatile cryptocurrency to help you earn interest.

The DAI stablecoin is a decentralized, unbiased, collateral-backed cryptocurrency soft-pegged to the U.S. dollar. DAI is held in cryptocurrency wallets or within platforms and is supported on Ethereum and other popular blockchains. If you’re a long-term-oriented cryptocurrency investor, then you might want to consider earning interest on your digital assets. Using cryptocurrency to earn interest yields passive income that can augment profits if cryptocurrency markets continue to appreciate.

Many platforms offer interest-bearing accounts that pay you in the cryptocurrency you fund your account with, and these interest rates differ based on which type of cryptocurrency you choose. Hodlnaut is one of those platforms utilizing smart contracts and allowing you to earn money on DeFi outside of cryptocurrency exchanges.  

Hodlnaut Overview

Hodlnaut was founded in 2019 by Juntao Zhu and Simon Lee as a borrowing and lending platform. The company introduced tiered interest rates last year and launched a dedicated mobile app.

The Hodlnaut Crypto Interest Account lets users earn interest on crypto with up to 7.25% annual percentage yield (APY) on DAI in November 2022. With this platform, no lock-in periods or minimum deposits are required. The platform operates an easy step-by-step approach to earning crypto interest. It also offers one free withdrawal per month and a token swap feature. Interest from Hodlnaut is paid weekly with zero deposit fees to transfer cryptocurrencies.

Hodlnaut: 7.25% Interest on DAI

Hodlnaut offers high interest rates compared to other crypto platforms, which means that investors can generally get higher yields over time. It offers two main products, crypto interest accounts to earn high APY compounded weekly and fixed-term loans with higher yields. The user interface is friendly and easy to navigate.

DAI is quickly becoming a popular option for stablecoin users. As a decentralized stablecoin from MakerDAO, DAI is pegged to the U.S. dollar to ensure each coin is worth $1. DAI exists entirely on the Ethereum blockchain. The stablecoin maintains a consistent price compared to other cryptos. Unlike other stablecoins, no centralized authority oversees it.

Unfortunately, as of November 2022, deposits, withdrawals and swaps are halted on the site.

How to Earn Interest on DAI 

Looking for the easiest way to get started earning interest on your DAI crypto? Check out this quick, step-by-step guide. Remember, you might choose a market leader in popular stablecoins, but are you going to get the interest rates you want.

Other Platforms to Earn Interest on DAI

Gemini is one reputable platform offering the opportunity to earn interest of approximately 6.43% on DAI crypto. DAI holders can deposit their DAI into the DAI Savings Rate contract and earn a yield on their DAI. The DAI Savings Rate is a floating interest rate set by Maker token holders. If the market price of DAI is above $1, Maker holders can vote to decrease the DAI Savings Rate in an attempt to reduce demand for DAI and lower its market price towards $1.

As you search for the best interest rates on crypto assets and price stability, you should sample several platforms that might align with your needs. Other options include:

CoinLoan: 1% - 12.3% APY

Nexo: 3% - 16% APY

YouHodler: 1.5% - 8% APY

BlockFi:  0.10% - 7.5% APY

Risks of Earning Interest on Crypto

Interest paid on crypto holdings differs from interest paid on savings or money market accounts from a centralized bank. Centralized bank interest poses no risk to your principal from trading unless the bank itself were to default or go bankrupt. Although crypto interest rates can be higher than those in the world of traditional finance, returns over time face risk to principal, are more difficult to predict and face a high level of volatility. High-interest digital assets carry a degree of risk. Additionally, the low regulatory oversight and decentralized nature of the crypto industry makes it susceptible to scams. Also, if the cryptocurrency that you hold depreciates, so does the interest you’ve earned. 

Is Earning Interest on Cryptocurrency Worth It?

Cryptocurrencies have a high risk profile that regulated fiat money does not. Although you can earn high rates of return, none are guaranteed. However, if you already own cryptocurrency and are a believer in the future of cryptocurrencies, then earning interest on cryptos may be a way of capitalizing on the value of your digital assets. 

Crypto interest accounts allow crypto holders to invest in digital currencies with the hope that these cryptos will increase in value over time.  

And, when compared to traditional bank accounts, crypto interest accounts offer much more attractive yields. When investing in any cryptocurrencies, it is a good idea to do thorough research and evaluable the risks.