An Introduction to Everex
How does Everex benefit users?
Mainly Everex serves as your payment gateway between conventional money and cryptocurrencies, using stablecoins as the means of exchange. You should use Everex when you need :
1. Send money to another user or business partner, whether it’s domestic or cross-border. Everex does it usually faster and cheaper than conventional remittance services, because with superior blockchain technology we can move funds faster.
2. Add or withdraw funds to/from cryptocurrency exchanges. Most of exchanges offer limited or no fiat deposits/withdrawal options. You can exchange fiat currencies to Stablecoins and back with Everex wallet and move funds between your bank account and cryptospace globally.
3. Borrow funds and earn higher than market interest from DeFi lending protocols. Everex provides convenient access to lending pools, also called Decentralized Finance Lending protocols (DeFi).
What is Stablecoin ?
Stablecoins are electronic representation of national currencies that are issued on blockchain and can be used both for traditional payments and payments relevant only for cryptocurrency industry, such as trading and lending protocols. Stablecoins usually have the same value as fiat currencies and are pegged (sometimes backed) by it. The most popular Stablecoins represent the value of US dollar, such as USDT (Tether), USDC, DAI, and PAX. Stablecoins enable people to maintain a particular value.of their holdings, and are the backbone of Everex model, playing a vital role in the services we offer, such as payments and access to decentralized finance.
How To Use Stablecoins for Transfers?
To send money to yourself or to another user, we recommend using Stablecoin USDC, which represents and is backed by US Dollar. First, you need to exchange some units of your local currency from the country you are sending funds from to USDC via Everex wallet. Once USDC is in your wallet, you request USDC withdrawal for another currency and country of your choice that is supported by Everex. If you already have USDC you can send it from the exchange or other wallet to yourself and request the withdrawal when and where you need it. The funds transfer offered by Everex differs from traditional remittance models because we don’t touch your money at any time. Instead we act as an exchanger with our users who are in control of own funds.
What is DeFi?
DeFi stands for Decentralized Finance which generally refers to the digital assets and financial smart contracts, protocols, and decentralized applications (DApps) built on Ethereum. In simpler terms, it’s financial software built on the blockchain that can be pieced together like Money Legos. DeFi aims to create a financial system that’s open to everyone and minimizes one’s need to trust and rely on central authorities. Technologies like the internet, cryptography, and blockchain give us the tools to collectively build and control a financial system without the need for central authorities.
What are DeFi lending protocols?
Lending protocols are debt markets built on top of a blockchain that drive growth within DeFi and allow for anyone to earn interest on supplied cryptocurrency or borrow funds by committing cryptocurrencies (mostly stablecoins described above) to a pool as a collateral. These lending protocols pull funds together and give people a return based on the demand of the assets being supplied and borrowed. In traditional model banks are the ultimate service providers and beneficiaries of lending business, earning interest on customer deposits, who in turn receive in average from 1 to 2% annualized return. With DeFi lending protocols like Compound or Dy/Dx that are built on Ethereum, now anyone can lend out their money to a pool of borrowers and earn from 5 to 10% interest.
How Does Everex Work With DeFi?
Everex integrates with Compound lending protocol. Note that to participate in DeFi lending you first need to exchange your fiat currency to Stablecoins such as DAI or USDC. (Loans made with DAI in general earn higher interest rate than with USDC). Everex will help you to supply your Stablecoin to Compound protocol and will provide a link to monitor your funds performance. At any time, should you wish to withdraw your Stablecoins back to Everex wallet you will be able to do it via our support channels. Please read more at We Offer page and send your interest via email form.
Is this safe?
These loans are collateralized loans, meaning that the borrower in most cases commits at least 150% of the loan as a collateral. The Stablecoins you deposit go toward backing collateralized cryptocurrency loans. When people holding cryptocurrency want to extract the dollars from their portfolio, but do not want to sell, they take out a loan. In order to take out such loan in Stablecoins that you supplied, the borrower must put up much more collateral to insure the safety of your funds. If the loan isn’t paid back by the borrower, he or she loses their collateral, which pays back the loan. As a result, there is very little risk of lenders losing money.
How The Interest Rates Are Determined?
The interest rates are computed about every 15 seconds based on supply and demand. If there are a lot of suppliers putting money into the pool and few borrowers, interest rates will go down. If many users are borrowing money but supply is limited, interest rates go up. Borrowers will want to borrow funds from Lending protocol because they can do so instantly, with comparatively low fees, and no application process, as there is no bank to deal with. Lenders also receive convenience of committing their funds fast, starting earning interest virtually in 15 seconds, and being able to withdraw funding without any notice our paying "early withdrawal" fees to the bank.
For more information please visit our Help Desk.