Crypto savings accounts are rapidly becoming an attractive option over traditional savings accounts. As interest rates drift lower – sometimes negative – people are seeking to maximize passive returns on their crypto assets. In Kraken’s previous report on decentralized finance, we explored how participants are maximizing their principal crypto returns by participating in liquidity pools and lending platforms. In this latest report, Kraken Intelligence examines Centralized Finance (CeFi) and the associated risks that can come with using these platforms.  CeFi platforms offer more accessible fiat on/off ramps and the means to take a cash loan. Those conveniences come with some conditions. For instance, users must trust in the platform’s custodial and security practices, and comply with identification checks at the governing entity’s discretion. However, CeFi expands access and financial services to people globally. These platforms are proving to be an important component to crypto adoption. As participants seek more information about the risks associated with using CeFi platforms, this report will provide detailed analysis of: - CeFi platform risks and respective reward rates - Default risk - Custodian risk - Trust and transparency risk - Market risk Earning yield on your crypto can be advantageous. Whether you are looking to earn passive income, grow your holdings or collateralize your investments, this report will help you better understand the associated risks of CeFi platforms and if the rewards are worth it.   To learn more about Crypto Yields, check out our previous editions in the series: - Crypto Yields, A Simple Breakdown - The Deep Dive on DefiShare this: - Twitter - Facebook - Like this:Like Loading...