The payments APIs which are created by Wyre just added the ability to create savings sub-wallets which is a new way to earn interest on Bitcoin, Ethereum from crypto apps.
Wyre creates the payment APIs that make many a cryptocurrency app tick, with partners such as MetaMask, MakerDAO, Compound, Coinlist, and OpenSea on its extensive list of allies. And soon, it may be seen that those apps offer savings sub-accounts to earn interest on cryptocurrency holdings.
The company announced the launch of the Wyre Savings API, which makes it likely to establish a savings sub-wallet within your main Wyre wallet within partners’ apps. The users can deposit cryptocurrency into the sub-wallet and begin earning interest on the funds.
“Wyre has been focused on lowering the barriers to entry for Fintech entrepreneurs around the world, and now we want to help our partners be prepared for the next market cycle,” reads a post about the new API. “When the next bull market hits there will be a huge influx of new users and speculators. They’ll come for the speculation, but we want to make sure we’re giving them a reason to stay.”
Out of the gate, the Wyre Savings APIs support Bitcoin, Ethereum, DAI, and USDC, with the company working with both centralized and decentralized finance (DeFi) partners to deliver the best-possible interest rates. While the firm will source rates from numerous partners, the post says that Wyre wants to stay consistent rather than have rates fluctuate wildly.
The current interest rates offered are: 2.431% for BTC, 2.401% for WBTC, 3.374% for ETH, 5.873% for USDC, and 5.788% for DAI. There’s no fixed term required for the funds to stay in the wallet to earn interest beyond the initial 24-hour period. Funds can be added and withdrawn at any point.
Wyre didn’t mention any specific partners that have agreed to add savings functionality, but if the API is as easy to implement as the company claims, then it’s hard to believe that partnered app makers would resist the ability to offer users interest on their cryptocurrency holdings.
Moreover the company is a regulated Money Service Business in the United States and some other countries, which Wyre used in its blog post to claim an advantage. “While the crypto space has been relying on the goodwill of hackers to return funds, Wyre is placing security as a top priority,” it reads.