The team behind Bloqboard, a cryptocurrency lending bulletin board, and LoanScan, a cryptocurrency data provider, is launching a new app called Linen to draw in non-crypto native users. Linen is aimed at lowering the barriers for crypto exposure by cutting out the need for multiple dApps in the lending process.
Vitaly Bahachuk launched Bloqboard early on in the Ethereum space. As a whole, however, people weren’t entirely sure what to do with its initial product, leading his team to focus on a particular subset of the product, a bulletin board which gives users direct access to the services provided by lending protocol built on Ethereum, such as MakerDAO and Compound. Now, Bahachuk and his team are widening that subset with Linen, abstracting some of the trickier parts of decentralized finance (DeFi) and presenting customers with a more user-friendly interface.
Linen will focus on functionality. It’s a fintech app that enables traditional banking procedures like direct deposit, savings, debit card capabilities, and money transfer, with the added benefit of earning variable interest through Ethereum-based lending protocols like Compound, which, at the time of this writing, offers a 5.68% APR to USDC lenders. In this way, Linen purports to marry traditional finance with DeFi capabilities for non-crypto native users, marketing towards those who have perhaps utilized high-yield savings accounts in the traditional finance world.
“To our members, the experience will be no any different than transferring money from their BoA account to Wealthfront or Betterment,” Bahachuk tells The Block.
Overall, Bahachuk said the crypto native community is well-served. It’s about introducing a wider audience to DeFi. However, this poses the problem of balancing transparency with accessibility. To meet its ethos, Linen needs to help users understand what they’re investing in, why it has such a high interest rate compared to traditional markets and what the risks are,