16% interest in USDC, too good to be true?

bettercrypto

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Quote from: The Hidebehinder on January 06, 2025, 01:10:25 PM

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

I am not planing on getting stuck in any stable coin right now since I'm living in Europe so the tether drama is enough to keep me away from this not even considering I can perfectly recall the Celsius nightmare but strictly speaking in numbers , how is it even economically possible and profitable for them to offer such interest?

Just don't forget that when you put money on any exchange site platform it is not your key, not your coins. Therefore, you should know how can afford to lose, it is important as a trader or investor. Then that 16% is already a lot but I'm not saying that it is scammy.

besides that, I'm not that familiar with what you're saying, but if you did some research on it, it would be better and if you found it to be good,
it's up to you if you continue.

Russlenat

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Quote from: hugeblack on Today at 07:10:16 AM

the promise of getting Up to 14% APY in Bitcoin seems more tempting but as I said you should not trust these services.
A quick review of their reviews shows that many complain about hidden fees and slow response from the support team.

They can probably offer that rate because they earn from their service charges, plus they have a large market based on what’s mentioned here.

Quote

Global Reach: Wirex is available in 130 countries worldwide and rapidly expanding.

https://www.fxempire.com/crypto/exchange/wirex/review

hugeblack

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Quote from: Botnake on Today at 05:12:16 AM

That’s normal I guess. high rates usually come with higher risks. In banks, for example, time deposits offer less than 10% because they’re very safe and insured. While the high returns might seem tempting, make sure to read all the terms, DYOR, and assess if you’re okay with the potential risks before jumping in.

the promise of getting Up to 14% APY in Bitcoin seems more tempting but as I said you should not trust these services.
A quick review of their reviews shows that many complain about hidden fees and slow response from the support team.

Botnake

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That’s normal I guess. high rates usually come with higher risks. In banks, for example, time deposits offer less than 10% because they’re very safe and insured. While the high returns might seem tempting, make sure to read all the terms, DYOR, and assess if you’re okay with the potential risks before jumping in.

So If you are to invest a decent amount of money, remember that we’re dealing with crypto, which is already considered a high-risk market. That’s why you need to understand what you’re getting into. Also, interest rates vary depending on the coin. The higher the interest rate, the higher the risk, that should come together.

hugeblack

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according to ---> https://bitcompare.net/platforms/wirex/lending-rates

Quote

Bitcoin
(BTC)
Interest rate
Up to 14% APY
Last updated
December 5, 2024
Tether
(USDT)
Interest rate
Up to 16% APY
Last updated
December 5, 2024

USDC
(USDC)
Interest rate
Up to 16% APY
Last updated
December 5, 2024

It is Up to 14% APY for bitcoin and not fixed 14% and is often subject to certain conditions that 90% of investors fail to meet, such as a min deposit limit, for example, depositing more than $10k/50k, strict KYC/AML or other conditions. These companies can meet obligations in a bull market, but it is rare for this to happen in a crypto winter, so stay away from them.

X-ray

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need to recheck the email first, but I think there are occasional offering of high interest staking in various exchange, usually for new members. it's part of their promo and i'm pretty sure the APR is the exchange subsidy.
though honestly i find the email you receive pretty fishy.

however, if we're talking about high APR stablecoin staking, there are also defi where they allow you to loop your asset to morpho or aave to leverage it, you get boosted APR with the risk of liquidation if the stable depeg, I think this one make more sense because risk equal to benefit. regardless, always learn the ins and outs of the staking program first before doing it, just in case, so you won't get trapped.

ajiz138

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Quote from: _act_ on January 06, 2025, 02:25:00 PM

Quote from: The Hidebehinder on January 06, 2025, 01:10:25 PM

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

I have seen more than 16% on Bybit and Bitget. If the market is higher bullish, the APR of the stable coin like USDT and USDC will increase. But if the market cools a little, they will go back to 10%. The exchange can give you 16% APR offer but know that the APR is not constant but changing and they might reduce it soon.

Moreover, you can see that APY offerings on DEX can be more than 20% for stablecoins so it wouldn't be surprising if some exchanges offer higher APYs as they may adjust when the market is rising or falling.
But I haven't risked a stablecoin in 1 year to chase the APY offered.

mindrust

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An apple in the pocket is a better deal than 2 apples on the tree. If the deal is too good to be true, it probably is. How much do you know wirex? How much do you trust them? They are paying these high amounts, because nobody trusts them probably.

Why don’t you go ti binance like everybody else? The rate is 10% there. At least if they go down they will take half of the world with them.

Wirex is small potatoes compared to binance. If wirex goes down, nobody will care.

The Hidebehinder

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Quote from: Ziskinberg on January 06, 2025, 04:01:00 PM

While the rates are higher than the usual financial market standards, you have to understand that it’s crypto, so the risks are higher, and naturally, the returns are higher as well. Wirex has been around for a while and is regulated, which adds some confidence if you’re considering trying out their services.

I understand that, but my question was more from the perspective of the borrower, so why would they borrow money from you at those rates when they could simply get them cheaper from normal lending, or are they unable to get that much funds which is a bit concerning, if they don't have the assets for a normal liquidity line with a bank.

Quote from: _act_ on January 06, 2025, 02:25:00 PM

I have seen more than 16% on Bybit and Bitget. If the market is higher bullish, the APR of the stable coin like USDT and USDC will increase. But if the market cools a little, they will go back to 10%.

Woundn't that mean they are basically gambling with your money like Celsius did based on market trends?

slaman29

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Check the full terms, all the big exchanges do this promo. But it's actually only averaged to 16% PA. They probably only give you something like 2 weeks or 1 month. So in actuality you're getting something like 1+% for the promo month.

It's still good but it's kinda pointless. Even if you had $1000, its extra 11 dollars for the month.

EarnOnVictor

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Quote from: The Hidebehinder on January 06, 2025, 01:10:25 PM

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

This may be strange to you but Wirex is not the only actor in such a manner now, I am sure that Bybit, Bitget and many other big names offer even more than 16% per annum on USDC and USDE, but that of the USDT could be lower, yet, I've seen Bybit advertising as much as 34% on the USDT in December. This is not what I just read/heard, I've also participated in that of the USDC and USDT, so the packkage could be real, but you have to first trust Wirex.

Quote

how is it even economically possible and profitable for them to offer such interest?

I think companies now have affiliations with stablecoins.

Lida93

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Quote from: FinneysTrueVision on January 07, 2025, 12:47:05 AM

Quote from: https://wirexapp.com/help/article/x-accounts-interest-explained-1293

Wirex can offer such high-interest rates because when users credit their X-Accounts, the platform converts those funds into DAI or another stablecoin (depending on the currency you credit) and places them in a DeFi protocol for you.

You could earn this interest without having to give control of your funds to a centralized custodian, but this offering is probably targeting users who don’t have much experience with DeFi and don’t want to deal with the risks and complexity themselves.

For me, leaving your funds in a centralized exchange for such a timeframe is almost equivalent to the risk and complexities a user could face having to deal with DeFi. DeFi isn't a rocket science that anyone can't abreast himself with if they give it their time, but it seems there are persons who will prefer leaving their funds in the hands of a third party by waiting for agreed time to get some interest.
Trouble is, these CEX can't be trusted as they could get behind and change the ToS of the service if on the process they observe that there's nothing there for them as it should be. I think I'll love to want to stick with the famous statement "not your keys not your coins".

FinneysTrueVision

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It is not 16% fixed interest, but rather, up to 16% variable interest. During the recent bull run, interest rates on lending platforms like Aave have gone into the double digits. Currently, USDC has 12% interest if you lend it on Aave. On Wirex’s website they state that interest is coming from DeFi platforms.

Quote from: https://wirexapp.com/help/article/x-accounts-interest-explained-1293

Wirex can offer such high-interest rates because when users credit their X-Accounts, the platform converts those funds into DAI or another stablecoin (depending on the currency you credit) and places them in a DeFi protocol for you.

You could earn this interest without having to give control of your funds to a centralized custodian, but this offering is probably targeting users who don’t have much experience with DeFi and don’t want to deal with the risks and complexity themselves.

cryptoaddictchie

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Quote from: The Hidebehinder on January 06, 2025, 01:10:25 PM

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

I am not planing on getting stuck in any stable coin right now since I'm living in Europe so the tether drama is enough to keep me away from this not even considering I can perfectly recall the Celsius nightmare but strictly speaking in numbers , how is it even economically possible and profitable for them to offer such interest?

Well better to be safe than sorry since you are living in Europe with has restriction on tether, might be bad for other stablecoin as they could be targeted with this mayhem.

But 16% is good considering theres no lock period or shorter lock terms. I like doing that, but in defi theres a good APY only if you trust the project.

tvplus006

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Quote from: The Hidebehinder on January 06, 2025, 01:10:25 PM

Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

This is why the cryptocurrency market is attractive, because here you can get a bigger profit than the one you can get from treasury bonds. The yield of 16% per annum does not surprise me, the main thing is that it should be a proven protocol. Gate Cryptocurrency Exchange Offers 45% per annum for USDe staking - https://www.gate.io/ru/announcements/article/40715

Ziskinberg

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It’s legit.. you can check some of the rates here: https://bitcompare.net/platforms/wirex/lending-rates.

While the rates are higher than the usual financial market standards, you have to understand that it’s crypto, so the risks are higher, and naturally, the returns are higher as well. Wirex has been around for a while and is regulated, which adds some confidence if you’re considering trying out their services.

BTW, its " up to 16%", its the maximum they can offer, so it could be lower.

_act_

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Quote from: The Hidebehinder on January 06, 2025, 01:10:25 PM

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

I have seen more than 16% on Bybit and Bitget. If the market is higher bullish, the APR of the stable coin like USDT and USDC will increase. But if the market cools a little, they will go back to 10%. The exchange can give you 16% APR offer but know that the APR is not constant but changing and they might reduce it soon.

BitMaxz

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Such a big offer compared to some exchanges like Binance; they offer around 10% in USDC with some terms like the 7% is limited to 500USDC and the 3% if you deposit more than 500USDC for OKX; it also offers the same but is limited to 1000USDC for 180 days after than it would drop to 7% for bitget exchange they offer 8% limited only for 100USDC for new accounts which is way lower than the other exchanges.

Why not check the terms first because that offer is really high compared to exchanges?
Take note of the limits of how much amount of USDC they only allow for 16% interest, and maybe they can only offer 100 USDC or limited days.

shield132

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Quote from: The Hidebehinder on January 06, 2025, 01:10:25 PM

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

I am not planing on getting stuck in any stable coin right now since I'm living in Europe so the tether drama is enough to keep me away from this not even considering I can perfectly recall the Celsius nightmare but strictly speaking in numbers , how is it even economically possible and profitable for them to offer such interest?

That's a very good interest rate and it's not a scammy offer. I have never used Wirex but I have known about the existence of Nexo for a long time, which has been offering up to 12% APY on USDT fixed-term investment and as far as I know, people don't have negative experience with this service.
Today, since Nexo offers up to 14% APY on USDC and 15% on EuroX investments, I'd choose Nexo over Wirex but that's my personal choice. Btw I suggest you have a deep look at the terms of investment because these offers come with some costs, for example, they might deduct your profit if you have invested for a fixed period of time and try to withdraw before that period expires.

There is one rule in the crypto world. Not your keys - not your coins. Because of this rule, people will never suggest you put money anywhere, no matter how trustworthy the service is.

The Hidebehinder

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I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

I am not planing on getting stuck in any stable coin right now since I'm living in Europe so the tether drama is enough to keep me away from this not even considering I can perfectly recall the Celsius nightmare but strictly speaking in numbers , how is it even economically possible and profitable for them to offer such interest?

Topic: 16% interest in USDC, too good to be true? (Read 141 times)