[maxov]

Yeah, I have heard of it, and thanks for mentioning it to those who may not have. Like others have said, these have very few of the same guarantees people might be looking for in institutional accounts, especially that it's not FDIC insured or other legal obligations. They are also subject to risks like bugs in smart contracts or even larger ones like in the settlement/blockchain layer. And how disputes may be settled in these systems legally has not been tested and is still under question. They are also not a good fit for standard checking account features that e.g. Wealthfront Cash has. Sadly, the amount of users actually using cryptocurrency for real-world transactions is still really small. [1]

I think all this stuff around yield farming, liquidity pooling, etc. is super cool, but I think the standard advice applies: "don't put in more than you are willing to lose". Given all the unknown factors and risks I would not use it for my emergency fund or savings, and right now I would think about it more like a rather risky, potentially high-return investment. Even if these products are marketed as "protected accounts", they all say that loss of principal is possible.

[1]: See https://medium.com/swlh/how-many-people-actually-use-bitcoin.... The 2018 Chainalysis report estimated 13.5 million Bitcoin users with 2.3 million using it to make regular payments. Who knows how many of these payments correspond to "real-world" goods and services, but I'd guess it's not much. Compare this to Paypal with 300 million active users.