How does Lava's USD Savings Account work?

Lava’s USD savings account allows you to earn 5% on your dollars. This is significantly better than any other savings account.

You can deposit dollars to Lava from your bank or using stablecoins, and then you can earn yield on those dollars.

When you deposit into your Lava USD savings account, your dollars are lent to borrowers on Lava who borrow against their bitcoin. Because loans on Lava are over-collateralized, the dollars lent out are always more than fully backed in value by BTC locked as collateral. The yield comes from interest that is paid by borrowers.

In other words, Lava allows you to earn interest on your USD by supplying dollars to borrowers. Those borrowers put up BTC as collateral to guarantee that your loan is always fully backed. If the value of the bitcoin backing the loan decreases sufficiently (or if the borrower fails to repay the loan), the collateral can be liquidated, and the lender will be paid their principal plus interest from the proceeds of the sale. Lava's liquidation engine connects to all major market makers in the world to allow for best price on all trade execution. In normal circumstances, the borrower simply repays the loan plus interest back to the lender, and then collateral is returned to the borrower.

With Lava, deposits are fully liquid. You can withdraw instantly. This works because Lava has built technology to handle liquidity across multiple capital sources, including institutional, to match withdrawals, liabilities, and assets.

Lava gives you double the yield of the next best savings account. Banks take 99.7% of the earnings from your cash. We give that back to you.

Bitcoin is the safest, most pristine collateral asset in the world. We built this product so that anyone in the world, not just institutions, can access the new, risk-free rate of return on USD, secured by bitcoin.