Is it worth staking stablecoins? - page 3.

Abiky

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Quote from: The Sceptical Chymist on March 16, 2023, 01:08:03 AM

I just stumbled across this thread, and I'm sure you know what you're doing by now--but goddamn, all of this sounds extremely risky. Not even just the risk of handing your coins over to someone else; I'm wondering how these....whatever they are, sites, smart contracts, whatever....make their money that they return to you. Are they lending it out? Investing in something that's even riskier?

These are stablecoins we're talking about, correct? These de-fi services have got to be doing something similar to what banks do, else there's no return to be had. If I owned any stablecoins (which I don't), I'd be way too afraid to invest them that way. Eek.

"De-Fi" protocols usually reward lenders with every stablecoin deposit. Rates can vary depending on how many people are borrowing coins on the platform. The lower the number of people borrowing, the lower your annual income (APY) will be. It's all driven by algorithms. The only risk would be losing all of your hard earned money if the stablecoin loses dollar parity in the long run. Of course, you can also lose it all with a PoS coin if it loses value. But at least you're not given false promises that they will always retain their value unlike stablecoins.

Quote from: The Sceptical Chymist on March 16, 2023, 01:08:03 AM

If all that comes to pass, who needs stablecoins? What's the advantage of them over cash if they're regulated in such a similar manner that they're equivalent?

I think the only advantage would be sending "Fiat" faster and cheaper across borders. Not to mention, stablecoin issuers are able to "freeze" or blacklist your address from being able to send/receive any coins at all (you can do a quick Google search to see for yourself how USDC has been able to blacklist addresses in the past). It's the perfect tool for bankers to get what they want. Therefore, cash is the only solution if you want to "stick" with plain-old Fiat. Otherwise, I'd suggest you go all-in Bitcoin for the long term.

rahulzx

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Quote from: Abiky on February 13, 2023, 11:14:27 AM

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.

Have seen some misleading ideas about USDC you can do proper research and take your own decision about your funds mate! The thing is security and trustfulness of crypto space.

Pezroly

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Stablecoins are not worth for staking. The better way would be to exchange them to another altcoins and then stake - max profit ~48% per year or less. You can PM me and I will send you the link, where you can exchange and stake to up to 48% profit per year.

2girls

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Quote from: Abiky on February 13, 2023, 11:14:27 AM

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.

Staking stablecoins on DeFi platforms built on Layer 2 solutions like Polygon is a safe way to avoid high gas fees. Aave and Curve are examples of platforms integrated with Polygon that allow staking stablecoins like USDT and USDC with lower fees. Alternatively, staking on centralized exchanges that offer staking services can be convenient with high rates and no gas fees, but it carries some risks. Now its all up to you which one will you chose

disconnectme

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If you have any fund you don't plan to use now, you can stake it and earn decent interest from it, 10% APY is a good return if you are being conservative, but a degen investor would earn more than this. I would advise you to stake it on Binance because your chance of getting your funds back is high, most of these DEXes carry significant risk and you need to understand it, especially from hackers, Euler was hacked recently and most of the users are sweating and praying for the hackers to refund the money

carrie_white

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Quote from: blendit on February 14, 2023, 11:33:11 PM

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

I agree with you, because in my opinion the safest place to put money is a bank, but indeed bank interest is now getting smaller and meaningless, on the other hand stacking stablecoins is a more profitable thing, but you also have to pay attention to which coin you want to stack, make sure the coin is safe for investment.

Psynthax

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Quote from: lalabotax on March 17, 2023, 04:51:43 PM

I once tried staking stable coins on Binance. but it didn't work out because it turned out that the profits that were obtained in that period were not worthy. Maybe because I have only a few stable coins so the results are very small too. So I prefer to keep it in the form of Bitcoin for long term preparation, at least to get profits in the bullish period later. This sounds more profitable. Because at the time of staking, we can no longer mess with these stable coins.

true, staking stablecoins require tremendous capital if we want it to be worth it, at least we need minimal of more than thousands dollars just to get some measly returns and it definitely requires longer period too, i'd say it's just better investing instead, stablecoin isn't gonna make someone rich through staking, it's just a way to combat inflation like everyone has stated.

Yamifoud

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Quote from: lalabotax on March 17, 2023, 04:51:43 PM

I once tried staking stable coins on Binance. but it didn't work out because it turned out that the profits that were obtained in that period were not worthy. Maybe because I have only a few stable coins so the results are very small too. So I prefer to keep it in the form of Bitcoin for long term preparation, at least to get profits in the bullish period later. This sounds more profitable. Because at the time of staking, we can no longer mess with these stable coins.

Honestly, staking stablecoins is just like putting fiat money in the bank and the percentage that they have offered back to us holders is very small which I see was not enough to compensate for the risk and the time we spend. Because doing this is just like we give an opportunity for the exchanges to earn more profit while for us traders, it is only as small shares which are not really acceptable.
If we aim to grow our money, staking stablecoins is not really the best option, we can use our funds for trading or just invest in Bitcoin and ETH.

lalabotax

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I once tried staking stable coins on Binance. but it didn't work out because it turned out that the profits that were obtained in that period were not worthy. Maybe because I have only a few stable coins so the results are very small too. So I prefer to keep it in the form of Bitcoin for long term preparation, at least to get profits in the bullish period later. This sounds more profitable. Because at the time of staking, we can no longer mess with these stable coins.

AakZaki

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Quote from: Abiky on March 15, 2023, 11:50:04 AM

The risk of staking stablecoins is simply too high to bear. What happened with USDC lately, tells us that stablecoins should not be trusted at all. You'll never know when they'll go all the way down the drain in an instant. I think it's best to convert your crypto into cash to avoid unnecessary risks in the long run. Saving money in a bank could be an option, but rates are not that high compared to "De-Fi".

At least, the risk of loss is lower with banks. I'd expect stablecoins to mature once regulators tighten their stance against them. With fierce regulations, stablecoin would prove to be legitimate enough for serious investors. Maybe they will get to live alongside Fiat for generations? Just my thoughts Grin

coexistence with Fiat is not an impossible thing. Now stablecoins and Fiat are both needed. Using a gateway to connect the two. Stablecoins are still the last resort, at least for now BUSD, USDT are still quite safe (but still risky in the future without strict regulation).
The risk of loss at the bank may only be in fees that are charged every month, but there is no privacy for anyone, but with Fiat privacy becomes safer and we can manage everything.

kevindjunaidi

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if you want to staking safely and get a definite value, then stable coins are the right and worth choice, but if you want to staking while investing, then I suggest you to invest in BNB, because you can staking while holding BNB until the price goes up, so you can get double profits (from the price of BNB increase and staking).

lobo13hf

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Quote from: cute nmp on March 16, 2023, 02:05:35 PM

To soo many staking stablecoins is not that profitable but there are more safer and can help reduce losses involved in staking especially in the bear market.The market is currently very unstable so it is much better to stake stablecoins nowadays.

isn't volatility is the bane of reason why currently cryptocurrency have so much trading volume, I think volatility is always good if you see it from other perspective.
meanwhile stablecoin staking nowadays was created just to combat inflation like many have spoken, it's indeed good enough staking option but then again not gonna make you rich.

cute nmp

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To soo many staking stablecoins is not that profitable but there are more safer and can help reduce losses involved in staking especially in the bear market.The market is currently very unstable so it is much better to stake stablecoins nowadays.

Bay_Harbour_Butcher

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Staking stablecoins is of course safer and worth it than stacking other coins, because it can avoid the ups and downs of the crypto market which is very high risk.
I highly recommend looking for a safe stablecoin stacking place like Binance , I've been stacking coins on binance for years and never had any problem

The Sceptical Chymist

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Quote from: Abiky on February 14, 2023, 05:20:52 PM

The fact that there's no way to claim stolen/hacked funds alone, makes me quite skeptical about "De-Fi". But adding a third-party to help solve this, would greatly "De-Fi's" original purpose of "being your own bank". I guess that's the cost you pay for decentralization and censorship-resistance. It will be up to you to DYOR regarding the "De-Fi" app you're willing to deposit stablecoins into, before regretting yourself in the long run.

I just stumbled across this thread, and I'm sure you know what you're doing by now--but goddamn, all of this sounds extremely risky. Not even just the risk of handing your coins over to someone else; I'm wondering how these....whatever they are, sites, smart contracts, whatever....make their money that they return to you. Are they lending it out? Investing in something that's even riskier?

These are stablecoins we're talking about, correct? These de-fi services have got to be doing something similar to what banks do, else there's no return to be had. If I owned any stablecoins (which I don't), I'd be way too afraid to invest them that way. Eek.

Quote from: Abiky on March 15, 2023, 11:50:04 AM

I'd expect stablecoins to mature once regulators tighten their stance against them. With fierce regulations, stablecoin would prove to be legitimate enough for serious investors. Maybe they will get to live alongside Fiat for generations?

If all that comes to pass, who needs stablecoins? What's the advantage of them over cash if they're regulated in such a similar manner that they're equivalent?

awik p

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Quote from: Psynthax on March 15, 2023, 06:17:06 PM

considering many platforms have apy lower than current inflation it's just waste of time, either try to go big with altcoins that could give you massive return of investments or nothing at all, unless you want to combat inflation i'd say staking stablecoin in general still a waste of time. it's even better just investing small amount of your money in some newer altcoins that looks like gem maybe eventually they will become massive.

if only to fight inflation maybe it can be used as an alternative to staking on stable coins, but for me where we are already familiar with cryptocurrencies, then it is less effective, like you, I agree it is better to choose altcoins than stable coins, for me it is a loss to wait in long term if only fighting inflation, unless we have a lot of money, but in small amounts it would be better to make a profit

Psynthax

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considering many platforms have apy lower than current inflation it's just waste of time, either try to go big with altcoins that could give you massive return of investments or nothing at all, unless you want to combat inflation i'd say staking stablecoin in general still a waste of time. it's even better just investing small amount of your money in some newer altcoins that looks like gem maybe eventually they will become massive.

bittraffic

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Quote from: jaberwock on March 15, 2023, 04:21:30 PM

Quote from: Abiky on March 15, 2023, 11:50:04 AM

The risk of staking stablecoins is simply too high to bear. What happened with USDC lately, tells us that stablecoins should not be trusted at all. You'll never know when they'll go all the way down the drain in an instant. I think it's best to convert your crypto into cash to avoid unnecessary risks in the long run. Saving money in a bank could be an option, but rates are not that high compared to "De-Fi".

At least, the risk of loss is lower with banks. I'd expect stablecoins to mature once regulators tighten their stance against them. With fierce regulations, stablecoin would prove to be legitimate enough for serious investors. Maybe they will get to live alongside Fiat for generations? Just my thoughts Grin

Yes. The problem is not with the centralized exchanges but it was with the stablecoin themselves. What happens with USDC is not a new occurrence anymore so people should have learned already long time ago that they must stay away from them and stick only with cryptos. If they cant deal with volatility, then this place is not for them.

There is no problem with cryptos so they must not convert it with cash. Cash sucks. It is prone to inflations. Keeping your cash in the banks is even worse. Do you know what happened to the banks lately? Although that wasn't new either. Banks are a bad way to invest and make money. Not only that they are risky but the reward is also tiny. I'll better go with De-Fi than on them.

True. It's also the inflation that I'm worrying about if I convert my crypto to stablecoin because if the inflation happens so fast as the government prints more of the money, the buying power will decrease terribly in a short period of time. And you could be losing opportunity when BTC bounces.

It's why I am staking some altcoins at least just to diversify my investment. But it sure best not to stake on exchanges but in a wallet that is secure and I have the private key.

StarKay

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Quote from: Abiky on February 13, 2023, 11:14:27 AM

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.

You could stake on centralised exchange like Binance, Bybit, OKX etc, the only problem with doing that is the low APR but at least you are sure that your fund is safe. I would probably prefer looking for more options with better returns and lower risk.

jaberwock

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Quote from: Abiky on March 15, 2023, 11:50:04 AM

The risk of staking stablecoins is simply too high to bear. What happened with USDC lately, tells us that stablecoins should not be trusted at all. You'll never know when they'll go all the way down the drain in an instant. I think it's best to convert your crypto into cash to avoid unnecessary risks in the long run. Saving money in a bank could be an option, but rates are not that high compared to "De-Fi".

At least, the risk of loss is lower with banks. I'd expect stablecoins to mature once regulators tighten their stance against them. With fierce regulations, stablecoin would prove to be legitimate enough for serious investors. Maybe they will get to live alongside Fiat for generations? Just my thoughts Grin

Yes. The problem is not with the centralized exchanges but it was with the stablecoin themselves. What happens with USDC is not a new occurrence anymore so people should have learned already long time ago that they must stay away from them and stick only with cryptos. If they cant deal with volatility, then this place is not for them.

There is no problem with cryptos so they must not convert it with cash. Cash sucks. It is prone to inflations. Keeping your cash in the banks is even worse. Do you know what happened to the banks lately? Although that wasn't new either. Banks are a bad way to invest and make money. Not only that they are risky but the reward is also tiny. I'll better go with De-Fi than on them.

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