When you save with Donut, they automatically convert your USD to digital dollars (stablecoins, such as DAI) so Donut can put those dollars to work in decentralized markets. Our partners lend your dollars at high interest rates through a global, decentralized pool of borrowers. Donut uses highly collateralized platforms such as Yearn to ensure your money is secure. You earn a guaranteed 4% APY, rising to 7% depending on your strategy.

Donut makes a slim profit on the difference between the rates earned across various lending and exchange markets and the rate paid to you from interest earned. We also charge a % matching fee to borrowers who get loans through the Donut platform.

DeFi lending is highly collateralized, often over 125%. This means your funds are protected, even if a borrower defaults. However, as with all digital currency products, Donut is not FDIC insured. The DeFi ecosystem relies on the integrity of our partners’ closely governed and audited smart contracts. While we're confident in Yearn’s extensive security and risk management practices, we encourage you to use discretion when investing and consider potential risks of this emerging technology. Read more about risk and safety at Donut.app.