Dharma, a crypto bank that does everything a normal bank does but isn't a bank, is now proposing “the easiest way to save in DeFi.”

Starting today, all of Dharma's US users can instantly deposit via debit card and withdraw to their bank account, 24/7/365. These withdrawals are processed via ACH within 3-5 business days and settle directly to the user’s bank account.

Backed by Coinbase, Polychain Capital, and Y Combinator, Dharma has partnered with Wyre to allow the vast majority of Americans to deposit to Dharma directly from a debit card.

“Under the hood, all debit card deposits are settled in Dai, the highest-earning and most decentralized stablecoin,” explained the company on Twitter.

These on and off-ramps are for US customers only, but Dharma says “this is just the beginning.” The company is planning to add additional countries and payment methods over the coming months, that too comes with lower fees and higher limits.

Built on the Compound Network, this decentralized finance (DeFi) project offers open-source lending and saving accounts and currently charges networks 20 cents plus a 2 percent processing fee.

The project allows one to earn interest on your USD Coin and Dai in the Dharma deposit address.

According to DeFi Pulse, the total value locked in Dharma was at its peak in June 2019 at $29.8 million which has now come down to $1.3 million.

The ETH locked in Dharma has also taken a drop from 99k in July of last year to the current 345 ETH. As for DAI, 1.4 million DAI were locked in October in comparison to 238k in Mid-January this year. But locked DAIs in Dharma is back to increasing, currently at 778k.

This smart wallet which is a non-custodial one automatically lends out any USDC or Dai it receives on Compound generating an interest rate.

With a minimum $0.01 limit for both deposits and withdrawals, Dharma offers a 7.3% interest on your assets, as per the website. This interest rate is determined by the Compound protocol and can fluctuate as frequently as every 15 seconds.

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