USDT: 8-9% at YouHodler/Nexo, Non-EU Exchanges?

[JackAlabama]

Not sure i would feel comfortable investing more than 10% of my net worth in this. What about you?


I am struggling to understand why this is not capitalized on yet. What I have learnt in finance over the years is that there is no free lunch. I would believe 20% on this (already very nice) but almost tripling your investment every year is crazy.

it wont work every year constantly just during the bull market phases. And tripling in such a year is not "that much". Just holding bitcoin since jan23 is like a 4x today without any special execution or platform risk inherent to these strategies.

Getting an apy of 40% of stablecoins was not uncommon like 3 years ago. But it disappears when shat goes down.

Bravo for asking the hard-hitting questions!


Thanks for reminding me .... my delusional greed was just about to take over my Ventromedial Prefrontal Cortex on a subject I hadn't fully realized was outside my circle of competence

Note to self: I have to measure thrice and cut once because I am my worst enemy

PS. The value of OCT is immeasurable!

well position sizing is important if you plan to engaging doing this. Even if 10% of your overall portfolio is wiped out completely due to platform risk (in whatever form, bankrupcy or kyc scam) it can be recovered by the other 90%. Ideally this 10% can provide outsized yield for some time. Its also possible you can exit the position or yield goes down that much that is not worth any more and you can stop operations.

 

[DerAufklaerer]

Aave - Open Source Liquidity Protocol

very well known pools

 

[JohnnyDoe]

Aave - Open Source Liquidity Protocol

very well known pools

Yes but remember there is no safety net, protocols can fail and/or be breached. DYOR

 

[DerAufklaerer]

It is supposed to be safer than CEX staking.

On the other hand, Bitfinex Lending is an exchange that has been on the market for a long time and is one of the largest.

Not an easy decision

 

[Vangor]

Btw why you guys so surprised on 10% percent rate? I invested in p2p fiat lending, when in EU it was -% rates, and it gave(with my conservative strategy) +10% APR. Now even EU banks gives 4-5% on USD. So high risk crtypto with 10% is kinda even low, no?

 

[cryptofriendly]

I am surprised no one mentions PIONEX.

Today 9% on USDT, was 19% last week.
They got lots of interesting yielding options.

USDC-DAI on GMX is 13%
USDT APY is 24.7% on NAVI
USDC on Aave is 13% Aave - Open Source Liquidity Protocol

NAVI looks really interesting,

USDT 31% right now
USDC 33%

(about 4% of it is in SUI)

Haven't looked into it much yet, how's the risk profile and how long do they exists?

 

[JackAlabama]

Btw why you guys so surprised on 10% percent rate? I invested in p2p fiat lending, when in EU it was -% rates, and it gave(with my conservative strategy) +10% APR. Now even EU banks gives 4-5% on USD. So high risk crtypto with 10% is kinda even low, no?

yes during bullish phases, apy on stablecoin can go up easily to 40%.

 

[cryptofriendly]

Can someone explain to me how the supply APY is double of the borrow APY?
How does it work?
Usually you pay more interest if you borrow than you get if you deposit...what am I missing?

https://app.naviprotocol.io/details...a437aaa7d3c74c18e09a95d48aceab08c::coin::COIN

 

[JohnnyDoe]

Can someone explain to me how the supply APY is double of the borrow APY?
How does it work?
Usually you pay more interest if you borrow than you get if you deposit...what am I missing?

https://app.naviprotocol.io/details...a437aaa7d3c74c18e09a95d48aceab08c::coin::COIN

I saw it happening before on other platforms. They didn’t end well.

 

[cryptofriendly]

I saw it happening before on other platforms. They didn’t end well.

Yeah, basic math says it's impossible.
How can they stay profitable?

 

[JohnnyDoe]

Yeah, basic math says it's impossible.
How can they stay profitable?

Through their native tokens, until they implode.

 

[LosAngeles]

Through their native tokens, until they implode.

Every investment carries risks, even storing assets like tether. But Aave has proven itself as a strong platform over time. If Aave were to fail, it would signal a problem not just with it, but with crypto in general.

Think about the impact on the crypto market if a big player like Aave were to crash.

Now, imagine someone who puts 50% of their savings into USDT, planning not to spend it. For example, if they have $500,000 locked in USDT, they could earn $50,000 annually without doing anything, as long as the APY remains stable.

In my opinion, life teaches us that nothing is completely secure. Just look at how Silicon Valley Bank crashed less than a year ago. But when it comes to investing, I don't think Aave is much riskier than the top 10 to 50 US banks. These banks typically don't offer returns as high as 4-5% per year, and they haven't proven to be better than Aave at this moment, just a smaller APY

The other option is keeping the stablecoin in a cold wallet, but there's no benefit to that.

 

[McPoquito]

Every investment carries risks, even storing assets like tether. But Aave has proven itself as a strong platform over time. If Aave were to fail, it would signal a problem not just with it, but with crypto in general.

Think about the impact on the crypto market if a big player like Aave were to crash.

Now, imagine someone who puts 50% of their savings into USDT, planning not to spend it. For example, if they have $500,000 locked in USDT, they could earn $50,000 annually without doing anything, as long as the APY remains stable.

In my opinion, life teaches us that nothing is completely secure. Just look at how Silicon Valley Bank crashed less than a year ago. But when it comes to investing, I don't think Aave is much riskier than the top 10 to 50 US banks. These banks typically don't offer returns as high as 4-5% per year, and they haven't proven to be better than Aave at this moment, just a smaller APY

The other option is keeping the stablecoin in a cold wallet, but there's no benefit to that.

This totally happend with LUNA. and others. been in the space since 2013\14. Things NEVER end well for anything other than the king. (Bitcoin)

high risk, ALWAYS in all the others, anything can implode.

 

[Marshal]

This totally happend with LUNA. and others. been in the space since 2013\14. Things NEVER end well for anything other than the king. (Bitcoin)

high risk, ALWAYS in all the others, anything can implode.

King or not, I prefer ETH. Just invest in 32 coins to activate your own validator, and there you have a passive income. And I might be wrong, but Ethereum has more chances of doubling its price than BTC right now.

 

[JackAlabama]

King or not, I prefer ETH. Just invest in 32 coins to activate your own validator, and there you have a passive income. And I might be wrong, but Ethereum has more chances of doubling its price than BTC right now.

you can stake cosmos and have even more passive income. Like 3x more . Even uncle sam pays a measily 5% like eth.
Normal in shitcoin land.

 

[Marshal]

you can stake cosmos and have even more passive income. Like 3x more . Even uncle sam pays a measily 5% like eth.
Normal in shitcoin land.

Sure thing, but thank you. I will stick with ETH lol

 

[jafo]

you can stake cosmos and have even more passive income. Like 3x more . Even uncle sam pays a measily 5% like eth.
Normal in shitcoin land.

What exchange or app do you use to stake cosmos?

 

[JohnnyDoe]

What exchange or app do you use to stake cosmos?

Don’t forget inflation rate. RN Binance is paying 17% on USDT, it’s a better proposition in terms of pure staking return.

 

[JackAlabama]

What exchange or app do you use to stake cosmos?

i dont use an exchange, but self hosted Keplr wallet and I pick a validator.
Other options are leap wallet or exodus wallet.

some of the exchanges offer it too, but well yeah its exchanges.

Generally, as the rewards are paid in kind the income is not stable in any shape or form nor plannable.

 

[LosAngeles]

King or not, I prefer ETH. Just invest in 32 coins to activate your own validator, and there you have a passive income. And I might be wrong, but Ethereum has more chances of doubling its price than BTC right now.

With Lido, you earn approximately 3.2% through stacking.