Is it worth staking stablecoins? - page 4.

Abiky

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Quote from: AakZaki on March 14, 2023, 05:28:23 AM

Staking stablecoins on a centralized exchange doesn't have any appeal for me, instead of having to use a centralized exchange it's better to use DEX which is of course better because it only uses smart contracts to be able to connect and be able to do staking easily. But currently stablecoins are also quite risky. Just see how USDC can crash to a price of $0.88. Gotta be wary of whatever you holdin' on. But Bitcoin is still the best to hold under any circumstances.

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

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Quote from: mich on March 14, 2023, 03:19:24 AM

Well in the past I was a fan of staking my coins on the exchanges. It was very easy to earn free coins for not doing anything. Stablecoins like usdt was my favorite to stake.
But now with what is going on in crypto, I do not feel as confident about it. When you stake on the exchange, it does have control over your money. 'Not your keys, not your coins' is now how I feel about this.

Staking stablecoins on a centralized exchange doesn't have any appeal for me, instead of having to use a centralized exchange it's better to use DEX which is of course better because it only uses smart contracts to be able to connect and be able to do staking easily. But currently stablecoins are also quite risky. Just see how USDC can crash to a price of $0.88. Gotta be wary of whatever you holdin' on. But Bitcoin is still the best to hold under any circumstances.

mich

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Well in the past I was a fan of staking my coins on the exchanges. It was very easy to earn free coins for not doing anything. Stablecoins like usdt was my favorite to stake.
But now with what is going on in crypto, I do not feel as confident about it. When you stake on the exchange, it does have control over your money. 'Not your keys, not your coins' is now how I feel about this.

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Quote from: Abiky on March 13, 2023, 07:26:31 AM

It seems to me it's best to save money directly in a bank account even though rates won't be that high compared to "De-Fi'. Or you could put everything in BTC and wait until it goes all the way to the moon. Who knows what the future of stablecoins will be? Huh

I'd definitely go with the Bitcoin option, though i wouldn't put everything into Bitcoin, i'd definitely have some of my funds in my bank account which is very pertinent, whilst i hodl the rest in Bitcoin. I mean, it is pretty safer and more reliable that trying to stake stablecoins for profit, Bitcoin has a high appreciation rate in the long term, thus if one is patient enough to hodl their Bitcoin for the long term, they are guaranteed to make ROI, and during the period of hodling, one is pretty sure that the Bitcoin is theirs because it is held in their non custodial wallet and they have the control over it, it is not locked up somewhere in another platform, which is pretty risky.

Having said that, i really cannot tell what the future of stablecoins is, but what i know is that many of them cannot be trusted to be stable or safe, they can lose their pegs in the event that whatever they claim to be backed by collapses, and quite a lot of stablecoin hodlers do not know this.

RealMalatesta

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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).

Today we have seen why all these fiat currencies are not to be invested, and that is one of the reasons why you shouldn't have stablecoins and evidently not stake them as well. I mean 1 usdt worths 1 usd, and usd is terrible if you ask me, if 1 usd is terrible then 1 usdt is terrible too, no matter if you stake it or not.

As long as governments keep on printing money and mismanaging the economy, the value of dollar (and all other fiats) will drop, and because they drop, even when you stake it you are losing the purchasing power. If dollar loses 10% value and you stake 5% back, that is not a profit, that is actually losing money and you should keep it in bitcoin instead.

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The costs incurred would be enormous if we did dApp betting on any platform, especially if we didn’t bet on the Ethereum platform, but for Matic, they have their own chain so that the platform is quite secure, and in addition, they usually offer a large APY without any cost.
If you’ve tried betting on Binance, there may also be some betting options for stablecoins.

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

~snip~
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.

Use a website that has good trust if you want to stake in stablecoin in big amounts, Right now security is number one besides the return that the platform gives to us. You can stick with Uniswap for my recommendation and always be up to date on the news in case you miss the recent news about the platform for example the platform being bankrupt and giving limited time to withdraw the funds and the reward.

Abiky

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Quote from: Dragonfund on March 10, 2023, 06:17:30 AM

When people try to stake stable coin, particularly when it is associated with a high yield, they usually collapse at the end of the day, and other few places where you can stake stablecoin have low yield, and I ask myself what is the point of staking it after a year if I can't yield something tangible. I recommend that you buy coins and keep them rather than staking stable coins. It is safer to buy and hold good coins, and you will surely gain something before the end of the year, making it worthwhile to buy rather than staking.

I've been thinking about staking stablecoins twice, now that a trusted stablecoin like USDC lost its peg a few days ago. Why would I waste my time trying to get a high yield with my stablecoin, if it's not guaranteed to hold the peg of $1 forever? I've thought algorithmic stablecoins were the only ones doomed to failure, but I guess I was wrong. Stablecoins backed by USD reserves depend on the banking system to survive, so there's the risk of losing it all if a major bank collapses (like SVB did).

It seems to me it's best to save money directly in a bank account even though rates won't be that high compared to "De-Fi'. Or you could put everything in BTC and wait until it goes all the way to the moon. Who knows what the future of stablecoins will be? Huh

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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.

When people try to stake stable coin, particularly when it is associated with a high yield, they usually collapse at the end of the day, and other few places where you can stake stablecoin have low yield, and I ask myself what is the point of staking it after a year if I can't yield something tangible. I recommend that you buy coins and keep them rather than staking stable coins. It is safer to buy and hold good coins, and you will surely gain something before the end of the year, making it worthwhile to buy rather than staking.

Abiky

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Quote from: youdacapt on March 08, 2023, 08:43:56 AM

To my understanding, staking usdt, usdc etc in your portfolio is a waste of assets and resources; why? because it is no different from using the native banking system fixed deposit method which we all know yields little to nothing in profits when we evaluate the turn over in a year. I think the most appropriate thing to do is to consider other investment options. Which options are there?

1. Trade your usdt/usdc in spots daily targeting atleast 1-5% per day (depending on your trading skills amongst others)
2. Participate nft flipping in opensea, (confirm that you have the skills, knowledge and experience to do this)
3. If you can, it is profitable flipping bitcoin lately on binance; if your usdt/usdc capital is huge; you can target simple %
4. Try participating in IDO events (especially on arbitrum network, the trends favor that chain lately)

I would suggest you avoid the expensive chains; the market is too bearish to spend so much funds on gas fees.
My humble opinion sir

Thanks for your suggestion. I haven't seen that much of returns on "De-Fi", probably because we're in a bearish market. Your chances for profit get lower if there are more people staking (lending) than borrowing. It's certainly not a good idea to stake on centralized platforms like Binance and Coinbase, especially when exchanges have been known to collapse in the past (eg: Mt. Gox and FTX).

If you don't have access to the keys, then you don't control your crypto. It's as simple as that. Both Polygon and BSC have ultra-low gas fees, so I think I'll give them a shot. Who knows how much I'll earn by the time the next bull market comes in? Roll Eyes

Bollexz1

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Investors prefer to stake stable coin because they are wary and unsure what these other coins would give. Stable coins APR/APY is way too low, I'll rather have my money staked in other ones that aren't stable.

youdacapt

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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.

To my understanding, staking usdt, usdc etc in your portfolio is a waste of assets and resources; why? because it is no different from using the native banking system fixed deposit method which we all know yields little to nothing in profits when we evaluate the turn over in a year. I think the most appropriate thing to do is to consider other investment options. Which options are there?

1. Trade your usdt/usdc in spots daily targeting atleast 1-5% per day (depending on your trading skills amongst others)
2. Participate nft flipping in opensea, (confirm that you have the skills, knowledge and experience to do this)
3. If you can, it is profitable flipping bitcoin lately on binance; if your usdt/usdc capital is huge; you can target simple %
4. Try participating in IDO events (especially on arbitrum network, the trends favor that chain lately)

I would suggest you avoid the expensive chains; the market is too bearish to spend so much funds on gas fees.
My humble opinion sir

swogerino

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However, there are also risks associated with staking stablecoins. These include the potential for price fluctuations in the stablecoin, changes in the interest rate, and the risk of loss due to security breaches or fraud on the platform.

That is why I never recommend to stake your coins on a third party no matter how trustworthy and for how long they have been operating,namely Binance being the biggest exchange we have but no one assure us that they won't go offline after some time.

The best to do is to stake in a wallet which gives you complete access over it,meaning "your keys,your coins" while at Binance this is not true,you don't hold any private key in Binance,you are letting them safeguard your coins which is a really bad security practice when it comes to crypto.

I personally use Atomic wallet and despite not having a lot of stablecoins to stake,I think it has the option to stake a couple of them but I am not sure about it as I only stake Zilliqa there.

Softs4Down

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Quote from: kizlod on February 14, 2023, 02:42:00 AM

Stacking stables is not actually stacking, you actually give your coins to someone, and if he loses it he might not give it back to you. So it's not the safest and best choice. I've seen that they might provide 10-15% API or more, and that sounds really dangerous, it's too high for low risk. I use stablecoins for transactions, I don't see any reasons to hold and stack them.

i think it was like loan the exchanges uses your stable coin balance and they givi it a fix ratio of profit on it?

raidarksword

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For me staking stable coins is the best wherein you cannot worry the price if its a bear or bull seasons. I have staking on binance exchange though they are not stable coins but for me it is safe there and I can easily monitor it and let it grow while waiting for the right time to sell in the next bull market. Binance and other exchanges offers stable coin staking maybe you can try it there.

Abiky

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Quote from: JayTrain on March 07, 2023, 03:54:53 AM

I'm also interested in staking stablecoins in a De-Fi dApp, but the gas fees on the Ethereum network are a concern. I've heard about Polygon being a solution for this, but I'm not sure about its reliability and security. I would appreciate any suggestions or recommendations on the safest and most cost-effective way to stake stablecoins.

You can use Layer-Two networks such as Arbitrum and Optimism on the Ethereum blockchain for ultra-low gas fees and blazing-fast transaction speeds. Many "De-Fi" projects migrated there for increased user adoption. Unlike Polygon and other alternative Blockchains, you can get the same level of security as the main ETH blockchain "without breaking the bank" just by using a L2 scaling solution.

If you play your cards right, stablecoins can make wonders in expanding your purchasing power long-term. The rates provided by "De-Fi" apps are often better than a traditional bank savings account. Regulations will come, but "De-Fi" will emerge bigger and stronger than ever. Who knows if 10 years from now "De-Fi" will become a "force to reckon with"? Just my opinion

JayTrain

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I'm also interested in staking stablecoins in a De-Fi dApp, but the gas fees on the Ethereum network are a concern. I've heard about Polygon being a solution for this, but I'm not sure about its reliability and security. I would appreciate any suggestions or recommendations on the safest and most cost-effective way to stake stablecoins.

Abiky

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Quote from: dimonstration on March 05, 2023, 11:27:54 AM

This is a bullshit suggestion. Stablecoins is the safest coin if you want keep the value of your asset stable. The idea of the OP is to get profit safely even with small percentage while his assets is protected from crypto volatility. Investing on shitcoins will just make his asset exposed to a lot of risk since crypto market is on a bearish trend. This suggestion of yours is irrelevant to the topic.

@OP, BSC has a cheap transaction and there’s a lot of DeFi project that offer liquidity farming optimization like automatic compounding interest. Just search on the top dapps of BSC to get your preferences option.

BSC is a very attractive blockchain for "De-Fi", especially when it's backed by the biggest crypto exchange in the world (Binance). A lot of projects moved away from ETH to BSC, despite the rising success of competitors such as Polygon and Solana. Binance's native stablecoin BUSD may be facing issues with regulators, but there are still plenty of other options to choose from. I'm eyeing PancakeSwap's liquidity pools, to get the most out of my stablecoin holdings.

Of course, there's always a risk when it comes to staking crypto in a decentralized manner. But it's still a better option than staking crypto on a centralized exchange. You and only you control access to your funds by holding the private key. I'd focus on staking trusted stablecoins such as USDT and USDC for complete peace of mind. Maybe they'll last for a very long time? Just my opinion

slashz9

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i dont know, because staking stable coin is give very low return and we have to stake big amount of money for get a great result.
but if you asking for the safest place, maybe you should try like uniswap, pancake swap or another paltform like that.

KingsDen

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Hello Leo! You can still win.

Staking on its own, I found it to be risky. Then staking on a centralised exchange is another risk. Therefore if you are staking on a centralised exchange you are taking a double risk. You should understand what this means saving on an exchange is not a good idea because the exchange can as well be bankrupt or be hacked at any moment. And you will use all your coins.
Now imagine that you have staked a coin for so long and in the end of the year or two years depending on the duration of stake both the exchange and the coin vanished into thin air. What will be your feelings at that very moment.

If you want to stake, look for a decentralized exchange. If there is any and stake stable coins rather than shit coins.

Topic: Is it worth staking stablecoins? - page 4. (Read 983 times)