Quote:Convert your cash
Nook partners with Coinbase—our trusted payment provider—to convert your funds into USDC, a stablecoin pegged 1:1 to the U.S. dollar.
Deposit your funds
Nook sends funds from your wallet directly to the earning protocol with the highest rate — all of which are hand selected with $1.5b on platform
Move funds anytime
At any point, you can withdraw your funds directly back to your Bank or Coinbase account. There are no lockups, delays or wait times.
What is defi lending?
Decentralized Finance (DeFi) lending lets you earn interest on your money by lending it through blockchain-based protocols. Borrowers use these protocols to access funds without selling their crypto, paying an interest rate in return. Currently, over $8 billion in active loans is locked in these protocols.
Ah, sounds like you're essentially lending cash to crypto investors and they are using their crypto as collateral. As long as the crypto market stays afloat, it should be good, but if the crypto market crashes, you should assume your investment will disappear as well...
If you want something that's simple, close (7%) and maybe a little more secure, check out https://worthy.capital/welcome-guide/
They put the money into company bonds, which, at least are pretty high up the food chain when a company goes bankrupt (my dad has pretty much invested 100% of his savings in corporate bonds - it's not fancy, but it works).
I don't have a lot invested at Worthy, but I have a little with them.