DeFi - Lending returns
- Thread starter BitEthsa
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legrant said:
For stables it usually follows US bond rates, or even below it. Right now you'd be getting 3-5% on blue chip protocols, and maybe double that on smaller ones.
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Where and what stables can I borrow at that rate? Cand deposit BTC into multisig for collateral.
For stables it usually follows US bond rates, or even below it. Right now you'd be getting 3-5% on blue chip protocols, and maybe double that on smaller ones.
Click to expand...
Where and what stables can I borrow at that rate? Cand deposit BTC into multisig for collateral.
W Fish said:
Where and what stables can I borrow at that rate? Cand deposit BTC into multisig for collateral.
Click to expand...
Are you looking for defi only? Then you can check the usual suspects like Aave, which for example offers 5.25% on USDT and 5.2% on USDC, max 75% LTV for collateral.
https://app.aave.com/markets/
But pay attention, the rate is VARIABLE and can (and WILL!!!) change depending on market demands (usually it's going up when FOMO sets in and people borrow stables to invest).
I have done that for a while but it was nerve wrecking, as when the borrow rates rose it needed quick adjustments.
Now I prefer a fixed rate - it's easier to calculate the arbitrage profits and plan longer term.
I have borrowed a huge amount of USDT with BTC as collateral with an FIXED !!! interest rate of 3.4% APY for 90 days, using the USDT to squeeze more profits in many ways.
Unfortunately I can't share the source, otherwise I'd sabotage my cheap borrow rates.
If you need a deep dive into DEFI yields, I recommend this guy's youtube channel. But double and tripple check the platforms yourself, diversify or die (capital wise)!
https://www.youtube.com/c/thecalculatorguy
Where and what stables can I borrow at that rate? Cand deposit BTC into multisig for collateral.
Click to expand...
Are you looking for defi only? Then you can check the usual suspects like Aave, which for example offers 5.25% on USDT and 5.2% on USDC, max 75% LTV for collateral.
https://app.aave.com/markets/
But pay attention, the rate is VARIABLE and can (and WILL!!!) change depending on market demands (usually it's going up when FOMO sets in and people borrow stables to invest).
I have done that for a while but it was nerve wrecking, as when the borrow rates rose it needed quick adjustments.
Now I prefer a fixed rate - it's easier to calculate the arbitrage profits and plan longer term.
I have borrowed a huge amount of USDT with BTC as collateral with an FIXED !!! interest rate of 3.4% APY for 90 days, using the USDT to squeeze more profits in many ways.
Unfortunately I can't share the source, otherwise I'd sabotage my cheap borrow rates.
If you need a deep dive into DEFI yields, I recommend this guy's youtube channel. But double and tripple check the platforms yourself, diversify or die (capital wise)!
https://www.youtube.com/c/thecalculatorguy
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cryptofriendly said:
But pay attention, the rate is VARIABLE and can (and WILL!!!) change depending on market demands (usually it's going up when FOMO sets in and people borrow stables to invest).
Click to expand...
you are giving away too much alpha my brother
But pay attention, the rate is VARIABLE and can (and WILL!!!) change depending on market demands (usually it's going up when FOMO sets in and people borrow stables to invest).
Click to expand...
you are giving away too much alpha my brother
cryptofriendly said:
But pay attention, the rate is VARIABLE and can (and WILL!!!) change depending on market demands (usually it's going up when FOMO sets in and people borrow stables to invest).
Click to expand...
That's why I've stopped chasing yields on DeFi and prefer now to use the most relevant CeFi platforms offering more reliable and juicy stablecoins yields. Just a different risks approach.
But pay attention, the rate is VARIABLE and can (and WILL!!!) change depending on market demands (usually it's going up when FOMO sets in and people borrow stables to invest).
Click to expand...
That's why I've stopped chasing yields on DeFi and prefer now to use the most relevant CeFi platforms offering more reliable and juicy stablecoins yields. Just a different risks approach.
kilor said:
Only Binance and Coinbase look to me reliable enough so far to enter into CeFi as a service I would take. I don't know something is going on with Binance and the US government, no one know where it will go.
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Kraken is solid too
Only Binance and Coinbase look to me reliable enough so far to enter into CeFi as a service I would take. I don't know something is going on with Binance and the US government, no one know where it will go.
Click to expand...
Kraken is solid too
kilor said:
Only Binance and Coinbase look to me reliable enough so far to enter into CeFi as a service I would take. I don't know something is going on with Binance and the US government, no one know where it will go.
Click to expand...
As far as I know the case against Binance was dropped already.
Kraken, Bybit and Bitfinex have some interesting yields too. I can't recommend Kraken as they closed my account for no reason (they let me withdraw my funds, however they didn't explain why, I assume regulations when they entered EEA). Bybit works flawlessly, got hacked not long ago and they were able to make up for all the loses, CEO is quite chill, they have 7% yields on eUSD and some nice yields on their VIP section. On Bitfinex you get money through margin lending, so rates vary, however I've locked 0.03-0.04% daily yield for 30-60 days before which is quite nice.
Only Binance and Coinbase look to me reliable enough so far to enter into CeFi as a service I would take. I don't know something is going on with Binance and the US government, no one know where it will go.
Click to expand...
As far as I know the case against Binance was dropped already.
Kraken, Bybit and Bitfinex have some interesting yields too. I can't recommend Kraken as they closed my account for no reason (they let me withdraw my funds, however they didn't explain why, I assume regulations when they entered EEA). Bybit works flawlessly, got hacked not long ago and they were able to make up for all the loses, CEO is quite chill, they have 7% yields on eUSD and some nice yields on their VIP section. On Bitfinex you get money through margin lending, so rates vary, however I've locked 0.03-0.04% daily yield for 30-60 days before which is quite nice.
Here you go: https://defillama.com/yields
In the left sub-menu in yields, you can find more advanced earning strategies too, under different categories like leveraged lending.
In the left sub-menu in yields, you can find more advanced earning strategies too, under different categories like leveraged lending.
Just be careful with what protocol you use. Even protocols that have been around for years have been and can get hacked. If your potential upside is earning up to 3% or even 5%, and you are not an expert in this, there is an argument to be made that maybe the risk of an exploit or other issue makes it not worth it. For what it's worth, I'm an expert in the field, and have still suffered through many hacks, rugpulls, and other protocol events over many years.
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