Is it worth staking stablecoins? | Bitcointalksearch.org

Abiky

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Quote from: gunhell16 on May 20, 2023, 02:32:04 AM

This is just my opinion, isn't it better to stake a stablecoin on a centralized exchange? because some of the good ones here are Binance and Coinbase.

Because here in binance, when you stake USDT, it gives 5% interest in a 6-months duration period of time, while in coinbase it is 4% for 3 months. Because if you want to do staking in Defi, as far as I know, the percentage of profit given is low whether it is usdt or usdc.

But you still have a choice if you want to stake your stablecoins, this is the link
https://koinly.io/blog/best-staking-platforms/

Rates on centralized staking platforms are pretty good. But there's always the risk of getting your funds seized or frozen for no reason (government intervention, exchange running away with the money, etc). Not your keys, not your coins. If only centralized exchanges had some type of insurance that would protect investors' holdings, then I'd have no problem using them to stake my stablecoins.

It seems my only options are staking through "De-Fi" platforms for complete peace of mind. Both Uniswap (Liquidity Pools) and Aave have brought my attention with their decent APY. They're tried-and-tested "De-Fi" protocols so nothing should go wrong. Fingers crossed stablecoins won't go to $0 overnight because of an unexpected event. Just my two sats.

bayudndy

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If you are concerned about the risks associated with DeFi platforms and prefer a more established and adopted cryptocurrency, then converting your stablecoin to Bitcoin could be an alternative. Bitcoin has a long history, is highly liquid, and is considered relatively safe due to its robust network and consensus mechanism. However, the price of Bitcoin can be volatile, which may not match the stability that stablecoins offer. But when considering any investment or asset conversion, you must evaluate your own risk tolerance, investment objectives, and market conditions. So you have the option of converting to bitcoin, and the decision is still yours.

asrinur

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I think you better invest your fiat into deposits or bonds if you expect more profit because if you want to stake in dApp platform it comes with its own risks based on security and also very high fuel costs. However, it seems that staking stablecoins is not much to gain.

gunhell16

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Quote from: Abiky on February 13, 2023, 12:14:27 PM

I have some USDT and USDC in my portfolio that I'd want to stake in a "De-Fi" dApp without worrying about it in a long time. There are liquidity pools in Uniswap with attractive stake rates, but there's also Compound.Finance with its lending services. Both of these platforms are built on the ETH blockchain, so gas fees would be astronomically high. I've read about some platforms being compatible with Polygon (MATIC), but I'd have yet to see if it's worth the shot (especially in terms of security/reliability).

Do you know the safest way to stake stablecoins without breaking the bank? Also, do you think it's worth it? Or should I consider other options? Any suggestions and/or recommendations would be greatly appreciated. Thanks in advance.

This is just my opinion, isn't it better to stake a stablecoin on a centralized exchange? because some of the good ones here are Binance and Coinbase.

Because here in binance, when you stake USDT, it gives 5% interest in a 6-months duration period of time, while in coinbase it is 4% for 3 months. Because if you want to do staking in Defi, as far as I know, the percentage of profit given is low whether it is usdt or usdc.

But you still have a choice if you want to stake your stablecoins, this is the link
https://koinly.io/blog/best-staking-platforms/

Velemir Sava

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I think staking on the Polygon network is relatively safe and low cost but is there any risk free, of course not because there is no completely risk free investment. Risks such as security vulnerabilities, risk of technical failure and market volatility are always present and affect the value of your returns and investments. If I'm not mistaken the platforms that can be considered are Aave, Curve Finance, or QuickSwap because there is stablecoins staking support for the Polygon network.

fullhdpixel

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Quote from: smile1218 on May 16, 2023, 10:44:39 PM

Staking stable coins can be a good way to earn passive income, but it's important to choose a reputable platform with a proven track record of security an reliability. You can search on the net for a popular and trusted platform. Check on the offer of the platform like high annual percentage yields for stating stable coins, always remember that staking often involves locking up your funds for a certain period of time.

Whether staking is worth it for you depends on your financial goals and risk tolerance. Staking stable coins can be a relatively low risk way to earn passive income.

I first saw this beefy finance inside the trust wallet but it seem popular and many people are using it. We can choose this to stake our stable coin than trusting a random platform out there because we might lose our tokens in the long run if not in an instant.

I wonder if what chain it is that, that offers 10 percent returns? Hmm but my guess is ETH? Because it is not easy to interact with the smart contracts using ETH. We all know why. Not only that staking stablecoins (any chain) has a better return than storing money in banks but it's indeed safer as well because we are staking in a decentralized platform. We must only ensure that we keep our seed phrases in a secure location.

smile1218

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Staking stable coins can be a good way to earn passive income, but it's important to choose a reputable platform with a proven track record of security an reliability. You can search on the net for a popular and trusted platform. Check on the offer of the platform like high annual percentage yields for stating stable coins, always remember that staking often involves locking up your funds for a certain period of time.

Whether staking is worth it for you depends on your financial goals and risk tolerance. Staking stable coins can be a relatively low risk way to earn passive income.

BaeSuzy

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There are better pools on BEEFY FINANCE where you can stake Stablecoins for 4-10% based on what chain you are using. And these pools are ranked on a scale of 1-10( 10 being the safest). And I've been doing it for almost a year. So yes, you can stake Stablecoins for a better returns than banks and without having to worry.

Iyeman

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doesn't seem to be really worth it, the returns is too low, you should instead look for another option, after all there are many other option like in binance if im not mistaken you could always holds BUSD and got some airdrops, usually it's BNB but I think BUSD sometime got their share too.

timoshani

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Quote from: Bialke on February 13, 2023, 06:41:48 PM

Fantom is building a new Stablecoin.

But overall I woud go out the Stablecoin-Space - In the moments Spookyswaps Boo is very cheap, and there are great staking opportunitys in the Fantom ecosystem.

In my opinion, it is better to treat stablecoin with some caution, despite the fact that the Fantom blockchain is already time-tested. There is nothing more reliable than Tethera. And in my opinion, the best thing is on the TRC-20, because fee for a transaction is almost zero here.

Abiky

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Quote from: riskarcher on May 14, 2023, 01:30:00 PM

Staking USDT in a Binance account can provide potential rewards in the form of interest or additional tokens. Binance offers a staking program where users can earn passive income by locking their USDT or other supported cryptocurrencies for a specific period. But you should aware of Exchange Risk its means during Staking USDT on Exchange means that you are entrusting your funds to a centralized exchange. While Binance has implemented robust security measures, including cold storage for user funds and various security protocols, there is always a risk of hacking, theft, or exchange-related issues. It's essential to consider the exchange's track record, security practices, and reputation before staking your USDT.

Decentralized protocols can be hacked too. But the risk is a lot lower than centralized staking platforms that don't give you access to the keys/seeds of your crypto funds. You need to do your own reasearch about the platform you're willing to stake your stablecoins into, just to be safe. USDT has managed pretty well during times of crisis, so you can rest assured your money won't be going anywhere soon. I cannot say the same about other stablecoins as they've failed in the past. You could either win big or lose it all in an instant.

One thing for sure is that staking stablecoins is a lot more lucrative than just saving money in a bank. If you act fast, you can reap huge rewards in the future. Just my thoughts Grin

riskarcher

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Staking USDT in a Binance account can provide potential rewards in the form of interest or additional tokens. Binance offers a staking program where users can earn passive income by locking their USDT or other supported cryptocurrencies for a specific period. But you should aware of Exchange Risk its means during Staking USDT on Exchange means that you are entrusting your funds to a centralized exchange. While Binance has implemented robust security measures, including cold storage for user funds and various security protocols, there is always a risk of hacking, theft, or exchange-related issues. It's essential to consider the exchange's track record, security practices, and reputation before staking your USDT.

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Quote from: blendit on February 15, 2023, 12:33:11 AM

staking stablecoin is better than putting it on the bank but as they say higher rewards means higher risk

I agree, because stablecoins also have risks (such as the collapse of stablecoin from LUNA), so in my opinion if you want to staking stablecoins, then we need to choose stablecoins that are safe and widely used by people (high volume), therefore I always choose USDT or BUSD for the stablecoins that I use as staking.

Psynthax

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Quote from: Rampagoe004 on April 26, 2023, 11:00:55 AM

Stable coins are profitable in the long run. But they do not have a significant return on profits. I personally like stable coins for investment but if an investment is profitable I prefer projects like ETH, XRP, CFX and others.

it's only good for countering inflation nowadays, there are plenty of many better investment alternative most certainly but these stablecoin in general never expose your investment to the risk of fluctuation, so there's reason these staking of stablecoin exists, one thing for sure it's not gonna make you rich at all.

jossiel

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Quote from: Abiky on April 27, 2023, 12:45:04 PM

Quote from: jossiel on April 26, 2023, 06:31:13 PM

If your intention is to enroll it into their earn feature, you gotta take the risk but I wouldn't say that it's the safest place to store your stable coins.

Staking into exchanges has its risk and that's why we always say that don't store your cryptos in exchanges. While there are options that's giving you the choice to generate your private keys in wallets.

It's better to stake in there than to exchanges that gives no private keys to your holdings. There are desktop wallets that also allows that and that's safer IMO.

The biggest downside of staking through decentralized platforms are paying high TX fees. Hence, centralized staking services are much more convenient for those who "don't want to break the bank". Depending on your needs, would be the type of platform to use for staking stablecoins. One thing for sure is that stake rates on stablecoin deposits are not as attractive as those offered by native PoS coins. You'd earn a lot more money staking traditional PoS coins than just staking stablecoins. Yet, this comes at a high risk since PoS coins are often volatile at times.

I'd diversify my investment between stablecoins and PoS coins to help minimize as much risks of loss as possible. Who knows if acting early will lead you towards untold riches in the future? Just my opinion

Those are things that needs consideration and yes, it all depends on your need and what you think about cex and dex staking.

But then, we've got a lot of option and it all sums up to what you're holding right now. If you're still on the plans of taking yourself into stable coins and earn from it.

There are a lot to be considered by then, as said, depends on your risk appetite and need.

Abiky

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Quote from: jossiel on April 26, 2023, 06:31:13 PM

If your intention is to enroll it into their earn feature, you gotta take the risk but I wouldn't say that it's the safest place to store your stable coins.

Staking into exchanges has its risk and that's why we always say that don't store your cryptos in exchanges. While there are options that's giving you the choice to generate your private keys in wallets.

It's better to stake in there than to exchanges that gives no private keys to your holdings. There are desktop wallets that also allows that and that's safer IMO.

The biggest downside of staking through decentralized platforms are paying high TX fees. Hence, centralized staking services are much more convenient for those who "don't want to break the bank". Depending on your needs, would be the type of platform to use for staking stablecoins. One thing for sure is that stake rates on stablecoin deposits are not as attractive as those offered by native PoS coins. You'd earn a lot more money staking traditional PoS coins than just staking stablecoins. Yet, this comes at a high risk since PoS coins are often volatile at times.

I'd diversify my investment between stablecoins and PoS coins to help minimize as much risks of loss as possible. Who knows if acting early will lead you towards untold riches in the future? Just my opinion

bitkanu

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Quote from: cute nmp on April 26, 2023, 12:06:28 PM

Think it is worth it sometimes.Staking stablecoins may not be as profitable as staking other altcoins but it is much safer especially during the bear market,there is not risk of price fluctuations but on the other hand during the bull market staking other altcoins brings in more profits.One can combine the two because both have their advantages.

it's true but one need to also remember the fact that the one that staked ust basically a stablecoin released by ftx back then was having massive bankruptcy, I think it's essential to also choose good stablecoin before hand but honestly staking all these stablecoin only good for countering the inflation.

jossiel

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Quote from: cafee_orange on April 25, 2023, 01:46:09 PM

Until now, I feel it's still worth risking stablecoins.
for now do you have a binance account ?, I think the safest place to stake your stablecoin is just by storing it in binance, you can also look at the earnings section there. if you keep it on binance then your income get and the risk is low. I think the binance platform will be recommended by many people because it is a safe place to stake Stablecoins that everyone owns

If your intention is to enroll it into their earn feature, you gotta take the risk but I wouldn't say that it's the safest place to store your stable coins.

Staking into exchanges has its risk and that's why we always say that don't store your cryptos in exchanges. While there are options that's giving you the choice to generate your private keys in wallets.

It's better to stake in there than to exchanges that gives no private keys to your holdings. There are desktop wallets that also allows that and that's safer IMO.

cute nmp

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Think it is worth it sometimes.Staking stablecoins may not be as profitable as staking other altcoins but it is much safer especially during the bear market,there is not risk of price fluctuations but on the other hand during the bull market staking other altcoins brings in more profits.One can combine the two because both have their advantages.

bittick

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Quote from: daenarys_stormborn on April 26, 2023, 10:48:04 AM

I don't think there is a problem with stacking stablecoins, in fact the profit earned is usually greater than just relying on bank deposit interest, so of course it's worth it. My advice is to do staking on large and safe exchanges, for example Binance exchanges

honestly there are times when the APY offered was lower than bank deposits that make it somehow doesn't really look worth it in my opinion. but the APY in regard of staking stablecoin in general always vary so I guess it kinda depends in the time that we invested in.

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