Who Needs an Off-Ramp? Ether.fi Plans Visa Card for Crypto Degens

Ether.fi Cash represents a mobile wallet and Visa credit card solution that enables users to borrow USDC, the widely used USD-equivalent stablecoin, by leveraging their decentralized finance (DeFi) assets. Repayments can be made directly using cryptocurrencies.

As a researcher studying Decentralized Finance (DeFi) applications, I’m focused on creating a cohesive set of tools that can make this complex ecosystem more accessible for everyday users, like yourself. The goal is to have a digital wallet, which we refer to as “cash,” where you can conduct transactions directly on the blockchain without the need for converting between cryptocurrencies and fiat money, a process called “off-ramping.” Off-ramping involves additional steps and fees that can make using DeFi less seamless.

Alongside the “Stake” initiative, Ether.fi offers another program called “Liquid.” In this program, users can place their funds into specially designed vaults, which are managed according to carefully selected trading strategies.

Ether.fi Cash cardholders have the flexibility to access loans using their Stake or Liquid deposits as collateral. The accrued interest from these investments is then utilized to cover their recurring bills automatically. Additionally, users can instantly convert their assets into USDC for swift bill payments.

Silagadze explained that with Ether.fi, users can easily access Ether and then go on to conduct various transactions such as saving, investing, and spending, all without having to convert back to fiat currency. He added, “You’ll be able to receive payments in crypto and carry on with your daily life as usual without engaging with the TradFi infrastructure.” Ether.fi intends to emulate the rewards programs of companies like Chase but with a unique twist. The platform also plans to stand out from traditional credit cards by adopting a fee structure that aligns with the DeFi market, instead of the standard 15-30% Annual Percentage Rates (APR) charged by conventional credit cards.

As a cryptocurrency analyst, I’ve noticed that cash isn’t the pioneering effort when it comes to crypto-based cards. However, according to Silagadze, past attempts to create comparable products were subpar and lacked merit.

He remarked that the majority were Visa debit cards. However, he found these cards less useful as they mainly functioned for booking accommodations and renting vehicles. Unfortunately, they weren’t versatile enough to cover various expenses.

“This is an actual credit card,” Silagadze emphasized.

Starting in September, Cash is anticipated by him to be introduced to consumers. However, due to regulatory issues, its availability in significant markets like the United States is uncertain.

Using cryptocurrencies like regular money comes with distinct intricacies – encompassing various market factors, as well as tax consequences.

At first, Silagadze explained that this was created with cryptocurrency experts in mind. However, for those considering diving deeper into the world of crypto and wanting to enhance their understanding, this resource could serve as a valuable guide.