ROBINHOOD EARN FEATURE IS HERE! (EARN 7% APY) | ROBINHOOD INVESTING

[00:00:01]Hey, what's going on YouTube and welcome back to Tech Conversations. Firstly, if you haven't already, make sure to check out Luxalgo.

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[00:00:50]Also, make sure to check out the Discord. Completely free to join. I'll put a link to it in the description below as well. We're almost at 11,000 members in here. So, thank you to everyone that's joined our Discord. Now, let's get right into today's video. So today I want to talk about a new feature that I just got access to on Robin Hood that is called Robin Hood earn which currently lets you earn an estimated 7% APY. Now again, this is a brand new feature currently rolling out to eligible US users, which means you may not have access to it yet, but you should in the future. Now, first of all, what is Robin Hood earn? So, Robin Hood earn is the first decentralized lending product available directly through the main Robin Hood app. So, Robin Hood Earn allows people to lend their dollarbacked USDG through a selfcustody wallet that is automatically created for you within the Robin Hood app at an estimated 7% APY with insurance procured through Lloyds of London and Realm to protect covered losses in the event of cyber or smart contract. contract exploits. So, the underlying lending infrastructure is powered by the Morpho protocol.

[00:02:33]Now, I know that's a lot to take in and I highly suggest you do more of your own research to fully understand how this new feature works. I will actually add a link to the official Robin Hood documentation in the description below that goes through a lot more of this in detail and especially pay attention to the risks involved. So when you scroll through this, you'll start to see sections here where it talks about different types of risks and how all of this works. So definitely read through this and understand it before using this new feature. Now I will show you the process of how this works. But for that we will need to switch over to the Robin Hood mobile app which is where this is currently supported. So let's switch on over.

[00:03:30]So here we are on the Robin Hood [clears throat] mobile app and this is the main Robin Hood mobile app. You don't have to download any new additional apps here.

[00:03:40]And so, as you can see at the very top, I'm on my stocks account, which is my main account on Robin Hood. And I'm just on the main tab here of the Robin Hood app. So, the way to know if you have access to this feature is if you scroll down a little bit on the main section of the app, if you see this earn section here, then you have access to this new feature. If you don't see this earn section, then you probably don't have access yet. So, let's digest this new feature here kind of section by section.

[00:04:17]So, I'm first going to click on the estimated 7% APY button here at the top right. So, when we click on that, we get this popup that shows up. So this tells us that the estimated 7% APY is the estimated yearly rate based on current lending conditions and the rate is subject to change and is not guaranteed.

[00:04:43]So it's very important that you know that. So I'm going to go ahead and click on got it here next. Now notice here below that there's kind of two main sections here. there's lifetime earnings and then below that there's total balance. So, I got access to this feature on Friday. Yesterday, which was Saturday, I deposited $2,000.

[00:05:09]And since then, you can see I've made 23 cents so far. So, what's really great about this feature is that you can see your earnings accumulate here in real time. They update in real time. So if you take a look under the 23 cents here, that continues to increase automatically here. We can see it live increasing my lifetime earnings. So that's pretty awesome to see that update continuously here. And then of course below that, you can see my total balance now is $2,000 23.

[00:05:47]Now let's go ahead and let's click on the top left where it says earn. So this will kind of take us to the main section of this new feature here. [snorts] So again, the way this works is you're basically buying USDG.

[00:06:07]So at the top right, we can actually view USDG here, which stands for USD global dollar. So, this is a stable coin and you can think of it as a digital version of the US dollar that lives on the internet. So, if we take a look, we can see that it's pegged to the US dollar. It stays at $1. So, if we take a look in the last week, it's been at $1.

[00:06:37]Last month, $1. Last year, it stays at $1. It's pegged to the US dollar. It's a stable coin. Although there are certain risks involved here where this could dep from the US dollar, which is why you should understand the risks before using this feature. So that's very important.

[00:07:03]So what you're doing here is you're buying USDG and then you're lending that USDG through a decentralized protocol called Morpho.

[00:07:16]And so the 7% APY is generated by the interest paid by borrowers who want to borrow those stable coins. Now again, this is very important. This is why you need to read the documentation and the risks involved. This is not FDIC insured.

[00:07:36]While Robin Hood has partnered with insurance providers like Lloyds of London and Realm to cover certain losses from cyber or smart contract exploits, you are still assuming the risk of the lending protocol itself.

[00:07:53]And so we can click on this little icon here, which again explains this feature a little bit more. Let's go back again.

[00:08:02]You'll see your lifetime earnings here, your total balance. You can see your history. So as you can see, I deposited $1,000 yesterday. And then I also deposited another $1,000 yesterday. So I deposited $2,000 so far here. Now, if we scroll to the bottom here, there's frequently asked questions. So, we'll get to that here in a little bit, but let's take a look at the two buttons at the very bottom. So, there's two buttons. On the left, we have lend. On the right, we have withdraw.

[00:08:38]So, if I click on withdraw first, I can withdraw what I have lent at any time by clicking that withdraw button. and then put in here how much I want to withdraw.

[00:08:52]So, you can see here I have uh $2,00022 available to withdraw. And so, if I wanted to, I could, you know, withdraw $500 worth of this right now. I would review it and I would submit it. So, this is not locked up. I can withdraw at any point in time here. Now if we go back here, that's the withdraw button. Now we can also click on the lend button here. So when we click on lend here, I can lend more at any time.

[00:09:31]And you can actually buy USDG here and then lend it at the same time basically.

[00:09:38]So I don't have any more USDG I can lend, but that's fine. If I wanted to do another like $500 and I click review, notice here it's going to say I need to buy USDG to continue. So it says I have zero to loan the full amount. You'll need to buy 500 USDG using your buying power. So it kind of works as two things at once here. it'll buy the USDG for me and then it will uh automatically uh lend it for me as well. And this takes not that much time. It happens almost instantly here. So you would click on continue and you would lend here. You would buy it and lend it. So those are the two buttons there at the bottom here. So it makes the process pretty simple, pretty straightforward.

[00:10:30]Now let's go back to the frequently asked questions here. So I would advise again to read through all of these and really understand them before using this feature. So the questions here are you know what is USDG?

[00:10:44]How does onchain lending work? How do I earn? What is a self custody wallet? You can read through all of those. Uh but I'm going to go through some of these at the bottom uh just again to make sure you guys are aware of some of these things. So how can you access your balance at any time? Yes. Like I mentioned, right? There's no lock up period. You can withdraw from the vault at any time and they're typically processed right away. How do taxes work?

[00:11:12]So, it's very important to be cognizant of taxes and how uh you might be taxed using this feature and earning that APY.

[00:11:22]Is this insured? So, this goes a little bit into the risks involved and how the insurance policy works. So, I would definitely look through this right here.

[00:11:31]And then finally, how can I learn more?

[00:11:33]So, this will actually have a link to the documentation that Robin Hood has around this feature that goes more into depth, which again you should take a look at. [snorts] So, this is Robin Hood's new earn feature. If you have any questions, feel free to leave them in the comments section below. Check out the Discord. Link to that in the description below. Hope you enjoyed the video. Let me know what you guys think.

[00:11:58]I will see you guys next time. Um,