Three former engineers at Crypto Exchange Coin base The company left at the beginning of this year to found its own company. On Wednesday, the team announced its new project: a crypto -saving app called Nook and 2.5 million US dollars in funds from risk capital companies Coinbase Ventures. Defy.vc and Udhc. The company refused to disclose its evaluation in the round.
For non-crypto-native users, Nook tries to increase the height of their crypto stocks by services such as AAVE, which means that the users can give their crypto to borrowers in exchange for interest.
Joey Isaacson, CEO and co -founder of Nook, told Assets That his team estimates that a user has to take 14 different steps to get access to the average loan platform. This creates a barrier for crypto investors who do not understand the subtleties of blockchain technology or do not have the time to learn them.
Nook hopes to move out some of the complexity of other platforms by registering with an e -mail address instead of having to connect a crypto letter bag, said Isaacson.
“We try to make the experience much easier to make the messaging much clearer … and stick to a clear setup in which we are within the regulatory boundaries and we are pursuing the rules,” he said.
According to Isaacson, the company plans to introduce further credit programs in the future, but Nook was introduced to the public on Wednesday with a partner, Moonwell, a loan platform that was founded in 2021 by another coinbase alumnus.
Before Nook starts publicly, she was slowly on board from his waiting list of over 50,000 people. These users have received an annual return of 8% by lending their Bitcoin Or another crypto for borrowers on Moonwell via Nook. “We cannot guarantee it, but these were the results that users saw,” said Isaacson.
Since cryptocurrencies are so volatile, it is risky to borrow and borrow crypto. However, Moonwell and other companies like IT try to restrict the risks by “over-collateralizing” their loans, which means that they use more crypto than they remove from the program to invest. In the event that the value of the confiscated crypto falls on a given threshold, the borrower is automatically liquidated, which means that they are forced to return its loan, and the program sells its secured crypto.
Another Coinbase -Alumnus and former CEO of Lending Protocol Compound, Jayson Hobby, follows a similar company called legend. Hobby’s platform enables users to access several decentralized financial applications platforms that enable a financial function without a third-party provider, such as a bank, to force users to register in a number of different accounts.
At the moment, Nook is free for customers. However, Isaacson said he would consider various income options after the company has attracted a considerable user base. “As soon as we can establish this connection and continue to establish our community, we see some income options in the street,” said Isaacson.
The company will use the money collected in this round to optimize its technology and to market and distribute its product.
