Huobi Launches Crypto Saving Products to Compete With DeFi Yield Farming – CoinDesk – CoinDesk

Huobi, the third-largest crypto exchange by derivatives trading volume, is now giving users a way to earn relatively attractive interest rates on a bitcoin or USDT savings account. The product, launched Sept. 7, is the exchange’s latest bid to beat its competitors as it boosts its assets under management. 

Huobi’s addition targets retail traders less interested or involved in day-to-day trading activities but still willing to receive a certain amount of returns from their digital assets, said Ciara Sun, the vice president of Huobi Global Markets, during an exclusive interview with CoinDesk on Sept. 8.

“Huobi has millions of users but a large percentage of that is not frequent traders,” Sun said. “By offering this saving product in addition to trading, (users) can get sable and flexible income as an alternative use of their crypto assets.”

The service does more for Huobi than meet customers’ needs. It also benefits Huobi’s position as one of the leading crypto exchanges in the world, Sun said. Assets under management have always been one of the key on-chain metrics to grade a crypto exchange’s performance, while other metrics such as trading volumes can be easily manipulated or miscalculated, according to Sun.

Huobi’s crypto saving products provide a more attractive interest rates than any traditional banking services while carrying fewer risks compared with the DeFi products, according to Sun.

Users of Huobi’s crypto savings products receive an annual yield at