An Australian smartphone app is offering a return of 4.01% per annum paid out daily for users who buy the TrueAUD (CRYPTO: TAUD) cryptocurrency.
The Finder app claims more than 12,000 Australians are currently on the waiting list for its Finder Earn scheme, which launched this week for 1,000 users.
The feature is described as “a cryptocurrency-based loan” given from the user to Finder, which pays out 4.01% as compensation.
TrueAUD is a ‘stablecoin’ that’s theoretically pegged 1-to-1 to the Australian dollar.
“Based on the Finder Earn model, if you were to transfer the maximum initial balance of 10,000 TAUD to your Finder Earn wallet, you would make more than 400 TAUD in a year on your capital,” stated Finder.
A very competitive return
The 4.01% return per year is pretty attractive in the current near-zero interest rate environment.
With the Reserve Bank’s cash rate languishing at a historic low, even the best bank term deposits barely bring back 0.5% per annum.
While there are ASX shares that provide a dividend yield of 4% or more, there is no knowing whether your initial capital will grow or shrink.
Finder editor-in-chief Angus Kidman reckoned Finder Earn is an Australian-first.
“The financial world as we know it is changing and we are giving Aussies a chance to participate in this new ecosystem,” he said.
“Finder Earn is an exciting way of getting a more attractive yet stable return on your capital.”
Is TrueAUD truly true?
Even though TrueAUD is theoretically pegged to the real Australia dollar, buying and selling still depends on supply and demand. For example, on Tuesday morning, CoinGecko was showing that one TrueAUD was worth $1.24.
But the Finder app is guaranteeing instant fee-free liquidation, which is another massive advantage over locking money into a term deposit.
“You can withdraw your capital from your Finder Earn account at any time with no fees,” said Kidman.
“Our mission is to help people make better financial decisions. Understanding crypto is not easy and we are trying to demystify it.”
TrueAUD was created by a company named Trusttoken, which also makes stablecoins TrueUSD (CRYPTO: TUSD) and TruePound (CRYPTO: TGBP).
According to Trusttoken, TrueAUD currently has a market capitalisation of $30,917,724.
The post Aussie app promises 4%pa return on AUD ‘stablecoin’ cryptocurrency appeared first on The Motley Fool Australia.
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