Donut partners with Synapse to connect digital banking with crypto to provide the bridge from traditional banking to DeFi.
The average savings account earns only 0.04% APY. If you save $1,000 for a year at that rate, you’ll earn only $1,000.40. Donut saw this dilemma and began searching for a solution that would give customers a way to save and earn much higher yields. They found a way with DeFi markets.
To enable the savings accounts, Donut’s customers consent to having their US dollars automatically converted to stable coins such as DAI. Donut’s partners lend those dollars through a global pool of lenders and borrowers resulting in high yield savings accounts that generate returns of a fixed 4% APY and a variable rate of up to 10% APY. With Donut, customers have the freedom to securely move their savings in or out with no fees or fixed terms.
Donut partners with Synapse to deliver a connected digital bank and cryptocurrency account powered by modern technology.
- Customizable integrations are straightforward and fast with Synapse’s platform and APIs. Donut built connected services from an all-in-one infrastructure layer.
- Synapse powers customizable solutions that grow by adding services like building blocks. Our stack gives Donut the option to develop significantly more features and products as they grow.
- Synapse advances and effectuates the charge to innovate in the cryptocurrency space, bridging banking, and DeFi for a unique offering that distinguishes Donut’s brand in the market.
“Banking and crypto exist in two different worlds. Synapse makes it possible to connect the two worlds for our customers.”
-Neel Popat, CEO
Founded on the question, how can we help build financial independence for a generation that is used to earning only $1.00 in interest over three months, Donut started from the ground up working with a partner who was just as invested to build a connected banking and crypto product that produced up to 20x rates than traditional banks. Today, Donut is attracting wealth-builders and those on their first journey into savings who are ready to earn higher yields securely and with greater flexibility.
To learn more, read the full case study here.