The current issues with Compound and Aave is the capital utilization rate is very low. Therefore, the spread between lending and borrowing rate is very high. Without solving this issue, we cannot bring DeFi to the main stream.
On average, the Compound borrower rate is 3-5% higher than the depositing rate. This interest rate earned by depositors is equal to the borrowing interest rate multiplied by the utilization rate. The utilization rate typically ranges from 40% – 75%. Or, if you reverse these numbers (60% – 25%), we see there is usually 25%-60% capital sitting there and earning nothing. This is the major reason that the spread between the borrowing rate and lending rate is so high on Compound.

DeFiner Savings has successfully resolved this issue. Our Taurus DeFi Savings account deposits excessive capital to a money market like Compound or Maker to improve our capital utilization rate to more than 85%.
For example, let’s say there is a total of one million USDC in the DeFiner savings account, and 50% has been lent out to borrowers. We now have half a million (500,000) USDC in excess capital. The DeFiner savings pool contract will automatically deposit 0.35 million (350,000) USDC to the money market (at Compound Finance or Maker), which will then earn interest while the remaining 0.15 million (150,000) USDC will be held in reserve. This reserve ratio (now 15%) is adjustable and can be as low as 5%.
In the same scenario at Compound, 0.35 million (350,000) USDC will sit in their savings pool and earn nothing. In this way, the spread between borrowers and lenders on DeFiner has been significantly lowered.