Decentralized Finance (DeFi) earning lets you earn interest on your money by matching it with borrowers through blockchain-based markets. Borrowers use these money markets to access funds without selling their assets, paying an interest rate in return. Currently, over $60 billion in active loans is locked in these money markets through our partners.

It’s all based on supply and demand. Traders need access to liquidity for trading, tax benefits or purchases. And they’re willing to pay higher rates for that convenience. If the borrower is unable to repay the loan, the protocol automatically liquidates the borrower’s collateral. A borrower has to lock up assets in order to borrow, to ensure the loan is repaid. That’s the main way Nook can scale to $60B and millions of positions. The system is designed to protect lenders (you) and the borrowers assume the risk.

Every loan is fully collateralized, meaning borrowers must put up valuable assets before borrowing. If they fail to repay, or the price of the asset they secured the loan with drops below a certain threshold, their collateral is automatically liquidated to cover the loan. All of our earning markets meet specific collateralization requirements and liquidity requirements to ensure the safety of your funds.

Our earning partners are all audited and have over $60B in assets. These markets are used by large institutions including BlackRock and Coinbase.

Nook is not FDIC insured. Nook’s main risks come from the underlying DeFi money markets it integrates with (smart contract bugs, depegging, liquidity issues.) But by working with some of the lowest risk markets and providers, all rated "Good" or higher by Exponential Fi, we have built a system with risk mitigation as our central focus.

Earnings from interest may be taxable depending on your jurisdiction. We recommend consulting a tax professional for guidance tailored to your situation.