Alice comes with three highly-touted features:
1. High-yield savings account
Utilizing Anchor’s high-yielding SDK in the backend, Alice is able to provide its users with a savings account (free of charge) that generates nearly double-digit annual returns.
Right now, its return rate sits at 9.30% before launch. Considering Anchor’s SDK generates between 18–20% APY for its users, Alice’s rate seems like a stable, long-term bet.
My question is: Will Alice be able to factor some kind of coverage into that rate? Meaning, will users be assured that their money is safe via insurance while also getting a 9.30% annual return?
If you’re an experienced DeFi LUNAtic, you might be asking why anyone would deposit money on Alice when they can get higher yields on Anchor’s web app. The key thing to remember here is that Alice isn’t targeted towards DeFi enthusiasts like yourself.
Alice’s mission is to onboard as many ‘normies’ as it can. It does that by providing an simple UI and disguising the blockchain in TradFi. And Alice’s rate of return on savings still trumps other means of traditional savings by a wide margin.
If a user wanted to double their return, they would have to go through the complicated task of learning how to onboard to the blockchain. There’s a good chance that a portion of the new users will — however, it doesn’t matter to the Terra ecosystem whether users transact on Alice or Anchor. It’s all the same UST.
2. Mobile payments app
Here, it is presumed we’ll see a service like Paypal. Where friends, family, and customers alike can transact with each other and merchants.
However, being a decentralized app (dApp), it’s very likely that transactions will be more cost-effective and quicker; a recipe for consumer and merchant attraction.
The United States is one of the largest adopters of mobile payments apps. According to Nerd Wallet, an average of nearly 80% of all consumers use mobile payments apps in the US already.
Now, imagine the process is sleeker and cheaper. Understandably, more merchants will want to get in on it, meaning even wider adoption by one of the world’s leading consumer markets. Thus, again, driving more transactions to be made using UST.
Quick note: On Alice’s website, they don’t mention consumer payments:
“Sending money to friends should be as easy as sending a text message. Now it is. Just enter a username or scan their QR code.”
It remains to be seen how involved in the consumer payments sector Alice will be. While mobile payments still fall far behind brick and mortar transactions in the US, it seems Alice would be missing out on a major advantage by skipping mobile consumer payments.
3. Alice debit card
Finally, we have the Alice debit card. Potentially the most exciting and sought-after use-case for Alice.
Even LUNAtics, Terra’s earliest adopters who know how to transact on the blockchain, would find a debit card useful.
It’s pretty self-explanatory why the prospect of a debit card is exciting. It would drive real-world use-case and transactions more than any other feature Alice offers. Imagine being able to go to an ATM and withdraw UST from your account. With the Alice debit card, this will be a reality.
It bridges the blockchain to real life.
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