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Before the Terra-Luna incident, with UST crashing, I was into staking stablecoins on Beefy for an average of 12-15% APY, which isn't that bad. However, the whole incident took a toll on me and quickly withdraw from DeFi altogether and temporarily put my money on Binance Savings, for 10% APY, with interest distributed on a daily basis.

Certainly, it wasn't the best move, but at that point, it was the safest option, at least till things stabilize. According to Beefy's discord server, the past few months it's struggling to make ends meet and had to go through changes regarding their fees and BiFi's yield. Ideally, I'd move my funds from Binance to somewhere decentralized again, but after UST dropped to zero, I was skeptical. I'm currently browsing on Beefy and see some interesting options, such as USDC-BUSD, linked below. It's offering 16% APY but the TVL is relatively low, should I be worried about it? Any suggestions or what to look for?

https://app.beefy.finance/vault/cone-usdc-busd

You shall not be feeling worried about that. USDC and BUSD issued by the same party under newyork's regulators approval. It's more reliable compared with luna UST token. UST token was a garbage token that has no enough funds to peg its stable token.
It's peg with terra luna to make it stable unlike USDC and BUSD which fully pegged with fiat money that being stored in some banks.
I think that would be worth if you are staking it. Im currently still staking and farming using my stable token.

The market is uncertain and the crash of Terra, Celcius, Voyager warn us that if you ignore signal of risk and hunt for profit, you will lose your money in bad accidents.

Stablecoins are not safe because they can be de-pegged by algorithms, or fud, or sanctions from governments. You don't know what will happen with the stablecoin you are holding.

If you want to have safe holding, hold fiat currency like US. dollar. Why do you have to hold USDT or BUSD while you can hold US. dollar that is safer?

Staking stable coins bring another risk when you have to rely on another platform, staking pool. What will happen with them? You don't know. If they get bankrupted, what will happen with your stable coins there?

Of course, we should take the safest option as possible. But staking stablecoins is not really a good option for me, I felt not secure with them. I'd rather invest in Bitcoin and ignore staking for I know that my money is quite secure. However, I'd just think also that nothing will follow Luna's footsteps and I know for sure that we as investors are also aware of that incident which make us more careful in investing and in the next staking.

I could assume that you have been thinking that decision OP and that is reason why you have take that option despite the risks.

I am too victime of that ust staking but cant really do much now.  I could say that greedily struck me during that time.  But anyone could be tempted with the APY staking stablecoin,  compared to traditional one on binance like busd or usdt with much lower. However it makes me more anxious now regarding that stuff.  I would definitely wouldnt trust new stablecoin staking aside those common ones.  Yes the busd apy is much lower but still manageable even with low APY.  But trusting again stablecoin like the new one on tron usd,  maybe not again.

Staking with stablecoins might offer a higher APY but I agree with the other comments here, UST traumatized many investors and that includes me, I'm afraid to stake for now and I'd rather focus on buying good coins at a cheaper price, I just need to wait patiently. Though staking can still be safe with other good stablecoins and if you think the risk is worth it, then you can really try it at your own risk. BUSD and USDC might be the next best option, try to do some research as well before you stake.

16% APY is quite high if you think about it. if its too good to be true,  you better suspect there is something to it. how trusted is beefy?
and don't you think staking stablecoins now will result to missing the opportunity to invest in crypto with low prices?

if i were to decide i don't want to lock my usdt or busd for a year to receive that 16%.  i'd play it and take my chances.

You don't have to lock your funds on Beefy, you're free to withdraw your funds whenever you want. The specific vault is consisted of BUSD and USDC, both are great stablecoins and the risk of them depegging or failing is close to zero. My main concern would be the vault itself, not the coins.

We're in a cryptocurrency forum, why would I hold fiat currency such as USD? Where's the profit in that? We already saw how Euro is performing the past few months. Staking stablecoins provides you with a small source of income, in my case it's at least 10%, by holding fiat, I won't achieve an APY greater than 0.10% at best.

And what do these high APYs give you? As practice shows, many pools instead of the claimed 12-18% APY actually pay 5-6%. If you think you should focus on finding stablecoin stackings that will pay 16% APY or more, that's a bad idea. You're not likely to get paid that much. Staking pools like to use floating interest rates and all that high interest very often turns into 3-5%.

What I have learned from the terra luna incident is that any high apy offering projects may not able to sustain such reward long term.
Binance apy offer may not be as high as beefy but in some ways your funds are safe compare to beefy that is struggling to stay alive, stablecoins are good for staking particularly during bear season, you are able to preserve your funds and earn reward at same time. I won't gamble with my funds in a fragile platform just for the high apy.

It is quite low compared to other APY, and if ever TVL increases that APY will possibly go down since there is a limited fund to pay for staking just like now the previous 16% is now reduced to 15.63%.


I think in Bify if you stake your coin, you can withdraw it anytime you wanted. 

When I used Beefy's vaults before the Luna incident, I hadn't noticed anything like that. I was earning slightly more than I'm earning now with 10% APY, but I have however heard about what you mentioned before. I'm aiming to achieve a small but noticeable increase in my passive earnings per month. On the one hand, I'm not sure if it's worth the risk, but on the other, if you're not willing to take risks, you'll never achieve higher incentives.

I already have this amount of money lying around, achieving some kind of return is better than having it sit in a bank account with zero interest.

After Luna's incident I can't believe on anythings . I doubt how reliable anyone else would be for savings or stacking than Binance. In fact, one should not be tempted to invest by seeing high APR.  But you can choose Binance, 10% APR and still, banks don't want to pay more than 7/8%, and Binance is ahead of all others in the set.

AFAIK, UST was just a new stable coin while the others that we know in the market as stable coins, they've been there for so long. I don't think that there's a need for you to worry and you're making a decent passive income with it.
USDC and BUSD are trustworthy and these two will I have if I'll have a centralized stable coin but if not, I'll choose DAI before any of the two.
Btw, how much you've staked totally?

I don't usually do stablecoin staking or liquidity provision because the APY is always low. I prefer the wilder and more volatile tokens(though impermanent loss has been the demon I battle endlessly). About the low TVL, that is a bad sign, methinks. However, it may be a completely innocuous sign and an opportunity for you to dive into the pool and harvest as much as you can before the degen farmers take over the profit and leave you with a low APR

During this bearish market, staking is one of the ways that we can do while holding our coins, and then we are staking to get worthy APY. But in fact, if we are only staking some amount of coins, this means nothing. The profits will be very small. Moroever we are not sure that the coinsor tokens that we are staking, they will be valabela nd high enough in the future. SO, basiclaly, I am not doing this. Moroever after what happened to LUNA and UST although they have tried their ebst to overcome the situation, in fact they are not able to make it turn back as earlier.

The issue with Binance is that it offers 10% APY up to $2.000 for BUSD and USDT. Thus, the most you can actually get is 10% APY for $4.000, it's not bad, but it's not great either. Banks do not offer more than 0.10% at best, personally, I'm aiming to achieve an APY of at least 15% for my funds, it would be ideal. Binance however, looks undoubtfully more trusted than a random vault on Beefy. It would suck big time if I end up losing my money for a 5% increase.

Still, Beefy is offering vaults with a higher performance, such as the following two:

https://app.beefy.com/vault/cone-usdt-usdc
https://app.beefy.com/vault/cone-usdc-busd

Both are scoring an average of over 15%.

They do look enticing.  I have known Beefy for over two years, I staked BSW in one of their offered services until I withdrew it to invest in Axie Infinity which I regretted.  I do think staking in beefy is pretty safe but of course, Binance in terms of reputation far exceeds Beefy.

What happened to LUNA gives a negative trust to stablecoins but still we have a good option like BUSD and USDC. Binance is indeed offering a good return when you do stake with them, I can tell they have a better backup plan and pretty secured, this can be a good option if you are looking for something higher. I don’t do staking anymore since I become more active in trading, and if you have time I think trading is way better though there’s a risk for this, that’s why you need to know your risk appetite, staking might be risky as well especially if you do this on unfamiliar platform.

Both vaults I quoted are on Binance Smart Chain, the coins are certainly safe, I don't know about the platform though (Cone). Generally, as you've also mentioned Beefy is quite safe, and their smart contracts are mostly checked thoroughly. The only risk I can possibly find is the APY dropping in the near future. I believe that the only way to achieve a higher APY is to constantly find new vaults to switch to, providing that the withdraw and deposit fees are not high (Beefy is claiming a 0% fee in both cases, at least for the two specific vaults).

Stablecoins are the safest choice for now, especially USDC and BUSD because when compared to other stablecoins such as USDT, which has a very high risk because it is still not reliable and trustworthy and USDT is not audited regularly, in contrast to BUSD which gets audited every month and USDC follow the rules so that your step of staking in this stablecoin is the right step because it has a small risk.

UST of Luna has a different approach as stablecoins, unlike BUSD and USDC.  UST relies on the algorithmic system that is pegged to the performance of Terra Luna, so when the UST depegged from 1 dollar value, they pumped Terra Luna production thinking that investors will buy in Terra Luna and bring in more funds to stabilize UST but they failed horribly because the sudden change in Luna network creates a hole for a "hacker"  to exploit the network and create billions of Luna in a short span of time making the situation way worst.   While USDC and BUSD had passed audit and proved that their stablecoin is indeed backed by USD 1:1.

By the way, Beefy had been operating for years now but indeed staking in an unfamiliar platform always have risk.

No, they are not safe at all.
But, we are talking about new stablecoins Beefy and that is what OP is asking for. Well, the comparison to stablecoins that you have mentioned above is different as they are known already, unlike Beefy which kinda be risky. But still, I would say staking in stablecoins is not safe, nothing we get any assurance knowing that this project hasn't yet gained a good reputation. We can't just simply think they are true to their plan, in fact, many people had lose their money due to the Terra Luna issue and that is something we consider it.

Stablecoins were the safest, but I don't find it to be useful in the uncertain market situation. If the price drops down it'll help in maintaining our portfolio. If the market experience an unexpected bounce the same will cause us experience a loss. For this reason I'll hold in the form of bitcoin and ethereum. I can have the patience, so that surely the price will recover someday.

You better keep your coins on Binance saving, although APY may be lower than other platforms offered, specifically here beefy but Binance ensures more safety for us.
UST is an algorithmic stablecoin and it is entirely different from BUSD and USDC, these 2 stablecoins are 100% backed by USD, it can be said that it will be very unlikely to have a serious problem like UST. The issue here you should consider is beefy, the collapse of UST led to a bunch of lending platforms shutting down, most of which were very high APY providers.

For me, rather than staking stable coins, I would like to prefer to invest in Bitcoin and hold them. For, I can buy more Bitcoin right now because the price is now very dropped by doing DCA. I believe that the chance for Bitcoin to rise up during the bullish era is high. And I believe that the profits from investing in Bitcoin will be higher than the profits from staking the stablecoins. Moreover, after the incident of Terra Luna and UST, none will guarantee that the stable coins will be safe all over time. Additionally, we can also consider the result of the staking itself, commonly it is also not high enough.

I would say that 10% is realistic and that 16% is not.

I base it on the safest bet on something I am aware of is the US I savings bond. That is based on the inflation rate and is currently paying a bit over 9%

So you are getting a little more on a stable coin which is pegged to the USA dollar just as the I bond is pegged to the US dollar.

to realistically think you can get 16% on a safe stable coin is simply not a safe idea.


https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm

rate is 9.62 and pegged to the us dollar.

BTW this is likely killing crypto investing at the moment.

If you are in the USA why on earth  take 10% on a stable coin when you can do 9.62% on the I bond.

you can do yourself a favor by checking the link as that rate will change in October.

I have some I bonds as does my wife. I have no stable crypto coins staked for interest at the moment.

I do have a piece of eth staked in eth2

Binance proceeded to lower the APY from 10% to 8% . It's actually the second time within the month that they're decreasing it. It used to be 10% up to $2.000 (tier 1) and 4% for >2.000 and <10.000 (tier 2). The first time, only tier 2 was affected, lowering the APY from 4% to 2%. "No big deal," I thought.

However, tier 1 was reduced to 8% yesterday, significantly reducing my profit. I don't see a reason to use Binance services anymore, since there are quite a few vaults that offer an average APY of 10-13%.
This one looks decent

https://app.beefy.finance/vault/curve-op-f-susd

Any thoughts or recommendations?

Somehow I would feel being cheated when a platform will reduce interest many times while you have agreed to a different APY. Binance afaik will take percentage when you unstake in an untimely manner.  Why do we need to hold and stake stablecoin right now, we see BTC is in bottom, price should going up already, don't you think?


If you have a huge amount of holding you would consider staking stablecoin. if the floating interest doesn't bother you.

Many investors loss much money when staking on UST as stable coin, offering higher APY reward than another stable coins make many investor most excited with Terra network stable coin than BUSD as Binance stable coins. I have another excited when staking coins because want to get higher return although with higher risk. I run staking with coins can give higher reward APY more than 500% although have to invest with meme or shit coin, but I run only few days later and close all staking and less risk with price drop.

Usually after one or two months later with coins staking give higher reward above 100% until 500% will drop drastically, what ever coins have listed on bigger exchange market keep potential drop drastically like AXS have been listed on Binance exchange market and have give above 75% APY reward for staking.

I have some experience with Beefy's vaults but nothing major. Honestly, I'm also traumatized by the Terra UST incident, resulting in a 15% loss on my end. I'm trying to be extra cautious now.
The first decrease didn't affect me too much. I have distributed my funds to BUSD and USDT, both offering 10% APY for up to $2.000. Thus, the first 2% decrease was only affecting anything over $2.000, so the impact was minimal and didn't bother too much.

Honestly, I don't want to tolerate the latest decrease, since it's affecting both coins, losing over 4% in revenue. Beefy's vaults offer an average of 12% APY, a few days ago, I didn't want to risk leaving Binance for a mere 2% increase, but now the difference is over 4%.

Edit: https://app.beefy.finance/vault/velodrome-lusd-mai
28% APY, but involves riskier stablecoins.

it's just that the risk is quite scary I think. I only remember that Terra USD at that time was damaged and even lost hundreds of thousands of dollars more if calculated. enter into stable staking of these coins must be prepared for anything that one day happens. if I could choose I'd better put the funds in savings binance because it looks safer.

I prefer APY not too big but not too small. below 20% in my opinion is still worth following, but still at their own risk. At the beginning, DeFi was busy, I even followed a project whose APY was up to hundreds of thousands of percent but didn't last long. Staking this time is looking for a longer one. some friends suggested putting it on staking binance.

I will not stake stable coin now. Intact I am not agree to stake any coin. Staking has very high risk. Many recent scam and banned show that staking is not secure . I think it's good to do some smart trading and one can earn monthly income which will be greater then staking for years.
 

I'm still not sure what the intention of people holding stablecoins is for long periods. For a simple reason, which is that these currencies are supposed to have a clear use, which is to freeze the balance from a cryptocurrency to a fixed currency in order to avoid loss in cases of a hard drop in the price.

Those stablecoins turned into a payment tool. This is the only logical reason why someone might hold it for such a long time that he has given up the investment purpose of holding cryptocurrencies.

UST is an algorithmic stablecoin, which is the riskiest stablecoin of all. Such stablcoins have an extremely high risk of losing their peg to the dollar and are often accompanied by a complete collapse of the coin. This has happened to algorithmic stablecoins in Solana, Terra, and other blockchains.  So if we talk about investing in stablecoins, only classic ones should be considered, not exotics like UST, USDD, and other similar algorithmic stablecoins. They are extremely unreliable.

ust was just an accident the stables are safe if one wants to invest with little risk and little gain then the stablecoin stake is the best choice

using stable coins is always a risk since these are not regulated and your funds can be seized/etc etc.
some months ago there was another collapse regarding MAKER / XDAI stablecoin (using ETH as collateral in this case... really similar to LUNA UST).
We have bitcoin just to avoid all these FIAT S*IT...why adopt another kind of FIAT? what will happens when central banks will launch their version of these tokens?
::) These ROI are really high since you are taking a big risk on it....

yes
i will rather stake my stable Coin, because, is not the best time to invest in any token, till next bull run

There are other defi platforms to choose, I wouldn't want to recommend one, its up to you to find out your  alternative to this beefy. I did tried one defi last year, it also disappointed me but staking if my first plan from the beginning so I get on with it anyway after all its my long term investment.

Until then waiting for another bull run I guess is all we need.

That is what I have said about fiat currencies and stablecoins to begin with. I mean my local exchanges allows me to keep my money in fiat, literally just fiat and not a stablecurrency, which means that I could keep my money in either crypto or fiat and then why would I invest into stabecoins.

You know what stablecoins are great for? If you have a job and you get paid a certain amount then you could ask for BUSD if you are getting paid into your binance account, that is what its great for. Aside from that I do not think that its good for anything else. To even imagine of "investing" into stablecoins is funny to me, they are not worthy of your investment at all because they will lose value over time since its fiat and fiat loses value.

Given USDT's own reports (https://miningsoft.org/en/guide/usdt-works/#where-does-the-collateral-data-come-from), I wouldn't say that USDT has no risks.

No one knows at what point the market will become bullish, for this reason, investors have already started buying coins that have lost 95% of their value. Therefore, now is not the best time for staking stablecoins, since this money should be used to buy coins.

It's okay if he prefers stable coins to bet on rather than buying potential coins like bitcoin, ethereum, bnb, or even cheap coins that have the potential to go up. Maybe he already has his own calculations and analysis so he prefers to bet stable coins. I prefer to use this time to buy the coins I mentioned above because it will give a big profit when the bull market returns.

People can choose what they think is more profitable because it is their money. And hopefully, they can accept every risk that will arise later.

The Luna activity was not accepted one and it should not compared to reduce the value of staking.Stake of coin was good one by the traders for the long run profit.If you had staked the good coin for the long run,it was sure that people earn 100 percentage as a return from staking.The big whales use the staking of bitcoin and use the correct time to reduce the price of bitcoin any time.So staking is best way for the holding of good coin for longer period.

It is possible not to choose. But to use, including as a diversification, the variant with stablecoin staking. I am of the opinion that stablecoins should always be present in an investor's portfolio, regardless of the trend. This will help you react to different market situations and buy out suddenly cheap or new coins. If you have stablecoins in your portfolio, why not make them bring in at least a small profit as long as you hold them. I don't see anything wrong with that, as long as the staking pool isn't on a centralized exchange ;)

I have staked USDT but the platform where I've staked it has lowered its APY by 2%.

Well, we have no choice but to accept the risk that it has. In my case, I understand the risk and it's an amount that I afford to lose even if it's quite high already which I can use for something else. But this is an investment, as they say, "no pain, no gain". And that's where I'm coming from and why I'm taking the risk because I know that someday it's worth it.

I also agree with you because by owning a stablecoin, we can buy any coin, especially if the price can drop drastically. And if we have more stablecoins, staking stablecoins can help him get more stablecoins. I already told him that he could choose to stake his stablecoin because each person has a strategy on how they will increase or expand their portfolio. But, before we decide, we should find out more so we don't make the wrong decision. With diversification, we can hope to get more profit in the future.

It's the same as you are only halfway to making decisions, don't really take decisions, even if you talk about someone's strategy it's not enough to say you're proficient, trading is a matter of luck or not someone is in making decisions, because it will make you panic in the future. day, so if you really want to dive deeper then, do it according to your ability and experience as a true trader..

Beefy is not a well-known platform to stake. UST belongs to Terra we all know what happened to it. There are stablecoins to each platform that you can stake but staking stablecoin right now might not be a good idea since we can see prices are bullish.

We passed to the point of the lowest prices of crypto and converting them USDT to staking coins could be profitable. I bet the majority who have ETH after the merge will consider staking thier ETH even in the exchange pools.

I don't think there is any safest yield, even what we consider safest as in irl banks they get bankrupt. Would go with — put money in yield you can afford to lose.

I will gladly stake my stablecoin if I have a decent amount to stake, in this bear market staking stablecoin may be an option to increase our portfolio but of course, we should choose our stablecoin that has already been stable in the past years like BUSD or USDT. I saw that LUNA and its stable gaining very fast in a short time which I guess it's not healthy for an altcoin.

I also have the same thought, if there are other ways that can generate bigger profits, why do we force staking in stablecoins. It's quite safe to
stake in stablecoins, especially since the platforms we use have a good reputation, we can get passive income too from stake in stablecoins.
The problem is that the profit we make from stablecoins is very small, so it challenged me to take risks with crypto trading. Or if you want to be
safer, investing in coins that have the potential for the long term is much more profitable than staking in stablecoins. But everyone has their own
plans in life, please decide what we feel comfortable doing. If anyone really thinks that staking stablecoins is still worth doing, then go ahead.
Because sometimes what is good for other people is not necessarily good for us. But my opinion is still the same, that staking stablecoins is
a waste of time, because the profit generated is too small.

I've been staking stablecoins on Binance and even though the rewards aren't much, they're passive income for me. There is no problem with the reward. I'm sure it will get bigger later because I do auto staking, where when I get the reward from staking, it will stake together in the next staking (correct me if I'm wrong). On Binance, there are several stablecoins you can use to generate more stablecoins and so far, I haven't had any issues.

If you compare the returns from staking and investing you will find that the profit earned is much lower than the return on investment, but if it is compared to the bank's interest rate you will see that it is not a small sum of money. In addition, investing is sometimes risky, not always profitable in the short term. If you have some idle money and do not want to risk investing it, then placing a stake may not be a bad idea for you.

Taking both risk of holding centralized stablecoin and the platform you stake only to earn 10%-15% per year is doesn't worth IMO. I'd say it's better for invest in banks and lock for around 3-5 years since it mostly give you around 5%-10% interest rate and there's a guarantee that your money will be back 100% because of insurance. Holding Bitcoin for long term are better option even though the risk is during dump market.

How come? Beefy is one of the largest platforms, personally had no issues. I've also used Supra, but decided to stick to Beefy. While I understand your point regarding stablecoin staking, currently I'd rather not use that money to invest in other coins. I might change my mind later, because I'm ultimately starting to consider buying BTC or ETH but for now, I'll stick to staking. There's always the possibility of losing your investment, even in Bitcoin. I was also staking when BTC reached its ATH. If I had purchased during the dip at $50.000 or even $40.000, I'd be at a huge loss now (over 40-50%). The opposite can happen too, but it depends on whether you want to take the risk or not.


Since when do banks offer 5-10% interest rate? The most you can get here on timed deposits is 0.03% to 0.10%. I'd rather invest my money on some random coin than deposit it in a bank.The only options I've seen for stablecoin saving/staking on Binance are BUSD and USDT (both offering 8%) and USDC which offered 1.2% the last time I checked, please, correct me if I'm wrong.

Staking decision is certainly based on its market performance. I know that still there are stablecoins that are worth trusting and profitable. Perhaps, we can't generalize that all of them are worthless because of just one of their kind have a scam issue but yes, there are several of them left and MIght that beefy is good. An experienced investor just like you had surely make a research first that is why I see the trust you give this project. All I can see is Goodluck but for me, I still choose BTC and ETH, staking for me is optional.

I don't see anything wrong in investing in stable coin especially when we don't have anything we are using it for at the moment. For an investor that has large holdings of usdt or other stable cqn stake it and leave it to grow although the APY will be very small not compared to other coins that are not stable coins.
Since stable coin is pegged to USD and it does not appreciate or depreciate in value then some persons might see it as a weak staking that is never necessary.

Include the platform where you will stake your stablecoins and the asset you chose. One of the examples here is the UST before with huge APY on Anchor. The APY before was around 20% and when the disaster started to happen to UST, the value of UST is dropping and the drop could reach -20% in just a few hours or a day. It's not worth it, even if you stake to some centralized exchange, you still can't guaranteed how safe they are.

yeah the TVL(total value locked) can be indicator as well how much people that deposit into that vault.

I actually have try beefy for several time and it work pretty fine to me and after I checked the link that you give above that beefy give two insurance for the vault the insurace.io and nexus mutual i think its safe. but if the APY don't have huge different between Cex you can choose CEX since they regulated by government

UST at the first place was algorithmic that pegged with their native coin LUNA. we should aware of this and try to move to other stablecoin and i think we also need to diversified to other dollar-pegged stablecoin not just focused in one.

I think there is no harm on staking if we stake in reliable platform, the only problem if we stake in the platform that made by scammer and our asset will soon be loss. If we are going to stake we need to be careful and do it in a trusted stakes platform because in this case we give them an access to our asset while we put it in thier platform that was very risky in our part so we need to be careful always.

Along with we are in a bear market, looking for profit as well as risk when investing in very big coins, staking stable coins is also a solution to generate income Good passive in the moment. As long as we use the leading platforms in the market there is nothing to worry about, don't be too greedy to join the platforms that offer high APY, they can crash at any time.

If you choose to stake I recommend binance. Whether we trade or stake, Binance is the exchange that gives me the most peace of mind.

right. Staking on stable coins is an option, this means a guaranteed passive income. than staking on coins that do not necessarily develop will certainly be more risky. binance is the best exchange right now, so it would be safer to do so. I think this is an alternative option other than trading for income. especially if we are still in the stage of learning to trade, of course the allocation for staking is greater than for trading, this is related to money management

That's true. But even if the return on staking is small, at the very least, it's money that we can collect and let grow. And even though later, the results are not too big compared to the investment, it is the profit money we get from staking. While in investment, you need to hold your coin in your wallet without using it for anything. And yes, investment has risks, so you need to understand them before you start.

If you have a large holding of Bitcoin, and you think that bitcoin will fall below 15k$, you can use stablecoins, so that its value will not be lost or changed, because at least in this case you will not be affected by the fall of bitcoin price. But this is just an example that if bitcoin is first converted to stablecoin and the second thing you can do is put the stablecoins, if, for example, it is BUSD, in staking like what is in balance, at least while it is stored on the platform at least it's still growing, not as much, but it's still better than putting it in the bank, which is only 1% per annum.

This is just advice which in my opinion is not a bad thing and a good thing to do if you are sure that bitcoin is going to crash hard.

The crash of Luna and its stablecoin has already caused a loss of confidence for many, but this should not make you lose faith in the rest of the strong stablecoins that have been stable for a long time such as USDT, USDS, BUSD These stablecoins are still in good condition and high reliability, there are There are also decentralized stablecoins, but in general I prefer staking when investing large amounts of reliable strong coins like Bitcoin and Ethereum.

In my country, but if your country only offer 0.03% to 0.10% then it's really suck to invest in banks since you're not earn anything as the value will always decrease due to inflation. I don't think it's good to invest in random coins since the risk is higher than staking stablecoin or invest in Bitcoin.

Did you refer to Binance? Their assurance only work if the hacker didn't steal the whole Binance money. If the hacker can get the whole money Binance have, their assurance are useless since they need to recover their operational first, not their customers.

Staking is too risky. I don't think that lock my stablecoins for 12 or 6 month to get 10-20% of ROI is a good idea (with high risk of project scam). Much better is buy the dip of BTC or good Altcoins and get much more.

To be honest, I do not know what to advise you in this case. Yes, and I do not like to advise, as well as listen to other people's advice. But in this case, I support investments with Binance because I myself use this option. I consider it reliable because of the reputation of the exchange.

Well, that was because all of us have different market approaches. Some people will think that staking is a great opportunity to earn and yes, it was indeed profiting but not that much compared to trading. And the reason why some people couldn't make themselves confident of what to say for they have not even done this in real life or have less experience with this.
yes, I was using Binance as my staking platform and it was safe there. Choosing a reputable exchange really matter as we handed over them our money, our coins to stake.

Actually my first choice to stake was BUSD in Binance, I think staking is the only way we can use Stablecoin as investment, since the price is stable, but also because the price is stable so it's less worrying than staking other crypto. However, there are still some risk like what happened to Terra, but I think something like that is unlikely happened to Binance.

UST problem drop drastically maybe APY reward given for staking more around 15% until 20% different with other stable coins like BUSD just given under 10% only, have hype method when giving higher APY reward actually bad thing happen later. Usually we saw with many shit altcoin kinds, early launching given crazy APY more than 1000% but few days later price drop drastically. I think not really safety when staking assets in several altcoin kinds, better try with another alternative like investment or hold in the bank although have inflation values but keep guarantee with our money until several years later.

I was actually planning to use one of the following:
https://app.beefy.com/vault/velodrome-usdc-dola
or
https://app.beefy.com/vault/spell-mim-crv

Second one looks a little more safe.

Honestly, when UST was offering 20%, it didn't seem too exaggerated because you could easily find other vaults at 15%–18%. The one I had my money on consisted of BUSD and UST. If I am not mistaken, it was achieving an average of 15%. Due to being made of two coins, it severely minimized my losses when UST crashed. If I were to chase the 5% more in APY, I'd be screwed.Binance sounds safe enough, I highly doubt that something like this could ever happen. Even if it did, they would be forced to reimburse their users.
Thus, it's best to look for a vault with a high TVL, since it's showing that it's trusted by investors, right?

CEX looks interesting but offers very limited options, some altcoins and their savings sections are yet to be activated.

I think it doesn't matter if the UST coin gives high APY because its value is unstable and the price is very low, other than that UST coin is not worth staking unless you are willing to accept the high risk of losing your investment, so it's better to stake BUSD even though the APY is not high but at least much more safer than the coins associated with Luna. However, your suggestion to save or invest in a bank is not an alternative option because the impact of inflation in many currencies has decreased, except for the option of holding USD rather than other currencies.

I'm officially pissed off right now. Yesterday I logged into Binance and noticed that I had received less interest than expected, but I was too sleepy to bother and didn't think much of it. I just went on savings and Binance has decreased the APY once again, but in a sneaky way that my sleepy brain didn't notice yesterday. 8% APY now applies only up to $1.000, instead of $2.000. My profits are currently cut right in half, and I'm not going to tolerate another reduction. I'd rather find a vault on Beefy.

https://i.ibb.co/MgGMmkp/Screenshot-20220918-081605-2.png (https://ibb.co/qDWkvY9)

If lower APY can give you a safer option, it should be the better. Hunting for higher APY contains more risk for your capital. You can trust or distrust Binance but what I am discussing here is very general. I don't support the sudden change (lowering) in APY from Binance but I think they did see something and want to go first to reduce risk for their platform as well as investors.

You can not trust that centralized platforms will not change their terms of service. They can make announcements and give you a window time to leave or decide to stay if you agree with their new terms.

At the moment I stake with a stable coin in several Exchanges spots, I get apy that varies from 6% to tens of percent, I think stabilized coins are better and safer because they are not afraid that prices will drop.

Lets be sincere with ourselves with the current market, which cryptocurrency investment is safer? Not any of the volatile coin are capable of defending the risk of investing.10-15% APY for a stable coin is a smart decision and if we still expect a leg down in bitcoin, we can make the profit from our less risk stable coin to take a position then. More also your money is not safer in the bank, so consider your options very well   

Small apy looks better for stable token. Remember that even if that was so small but there's guarantee for your money will not be affected by the volatility in the market unlike another token which is offering very big APY but these tokens become scam token a month after release.
I think that if we must also aware about this too. Im still staking my stable token for now. It sounds like that if we will be getting stable income and that's far better

It's perfectly understandable for APY to fluctuate. There was no guarantee that it would be stable forever. However, even locked-interest plans have been severely affected. They guaranteed a 13.3% APY a couple of months ago and were always unavailable and/or had a very limited available quota. Now it's down to 4.7%, while flexible savings is actually less than 5% APY for anything over $1,000, which is close to nothing.

While I prefer Binance's safety, I'm going to try and diversify my money by starting to deposit some of the allocated funds on Beefy. The current APY is too insignificant to bother.

I think the high risk that it gives doesn't justify the small amount of reward that it is offering. I mean if I wanted to find something with high risk then I could have simply invested into some of the brand new pre-sale stuff and stake that and make like 1000%+ return a day, which we all know will tank very quickly, all of them do, and only maybe one or two could continue longer, and that risk is useless to me and foolish as well.

So, I am not staking UST, and I am not staking anything that is as risky. I am going to start staking ETH though, I do not have enough so I will use pools but I do believe that it would be a trustworthy coin with a good return and added bonus as staking.

Terra reminded me to believe in stable coin staking on the DeFi platform. it would be better if you do staking in binance with BUSD, they are more guaranteed safe with lower interest. It just requires more capital for bigger profits, than outside platforms which are still vulnerable.

Despite the fact that there is no such thing as 100% secure in the crypto market, I also find that binance is the most secure staking platform compared to any other. Staking does not give good returns like investing or trading but it is stable and passive, staking becomes really more useful to us in a bear market where we can hardly find profit on the market. Investment or staking are both risky, so we should only use idle money to use, not borrow money to participate in the crypto market. It's still the old saying: don't invest money you can't lose.

The yields on staking stablecoins usually tend to be really low. In Terra's case they had billions of dollars from the Luna Foundation to subsidize higher yields for a while until it collapsed. Some decentralized exchanges will incentivize you with their own native token to increase yields but those tokens usually dump hard and that extra APY will be reduced so much it is not worth it to stake stablecoins. If you only care about APY then centralized exchanges will be the better option in the long run.

There indeed are many altcoins out there offering good APY and Evmos is one of them. I'd suggest you make your research on Evmos and probably put it into consideration. Believe me, it's worth putting money on.

That is quite true, the low return is something that should be very much in the minds of the people as not so bad though, if they want to stay in the fiat world. Imagine a scenario like this, you are in crypto, bought bitcoin and ethereum, and they went up so much that you imagine they will be eventually down, like bitcoin is at 100k and ETH is at 10k, and you want to get out. What do you do? You either go directly into fiat and cash out, or you go to stablecoins.

In that case, is it better to stake and earn something from them, or do you prefer if they stayed the same? I do not support staking stablecoins as an investment, but as an option, it’s better than just to hold them.

I myself prefer to use Stabilcoin as a hedge and to transfer assets cheaply and quickly, rather than using it as staking.
such as USDT, which is one of the pioneer stablecoins launched in 2014, and is the most popular to date.
USDT value is guaranteed to be 1:1 to the US dollar.
Currently, USDT is one of the most popular stablecoins by market cap.

Looks like Terra LUNA has started to bounce back. If you are thinking of getting in early by taking the risk that you are involved in, I believe entering a stable coin bet is a good choice. But that doesn't mean we don't get risk if we invest in the long term because no one knows when bad things will happen and happen to this platform.

personally i stake Stablecoins just to keep assets. the rest is good for investment I don't do with stablecoins. I think to keep the value the same then we should be able to change it in stablecoins and this is safer in my opinion

You can't expect a vault or coin that is pegged at $1 to have excessive yields. There were some algorithmic stablecoins that offered great yields in the past but were quite risky, and I'm not talking about UST, but for BoltDollar (BTD), MonsterSlayerCoin (MSC), or even Iron.Finance. The first one made more than $1,000 in less than a month, while Iron made $200 in a month before getting hacked on Polygon Blockchain and being removed entirely.

I currently have very limited time and haven't bothered moving my funds to Beefy yet, but I noticed that the safest options on Beefy have also decreased APY, averaging 8–10% at most, compared to 10–12% a week or so ago. It's still better than Binance's, because it's covering the whole amount.

I never stake stablecoins because I think the value of stablecoins won't be so much changed (increase) although we get a high APY for staking it. I prefer to stake Bitcoin or ETH, I think collecting more of these coins will be more worthed since their values can grow significantly in the future. Regarding UST, it doesn't reflect the potential of all stablecoins, it is only a rare case of stablecoins. So, why you must be worried about that case? Other stablecoins have other fundamentals or factors to support the value.

I keep my reserve funds on stablecoins. and of course i bet it too. although it doesn't make much of a difference. but it's much better than nothing. I use BUSD as a stablecoin. because so far only BUSD has never had any bad news about it. and I use the flexible staking feature so I can use my BUSD when I need it like to buy bitcoins when it drops deeper. I don't dare stake for years. I prefer flexible staking. and it's on binance.

It's understandable to when past incidence are reviewed before making present decisions. There's no doubt that the issue of UST left scars in the heart of holders and Infact everyone who followed the news. But to be candid that issue was expected because we all know that altcoin are unstable and pegging a stable coin on an unstable altcoin could spell doom. I know usdt and busd are more reliable owing to the fact that the stability of the coin is pegged to fiat.

not at all time , because if you do remember back in 2021 that Meme coins such as Dogecoin and Shiba Inu makes its hype and brings greatest profit from its holder and investors though this is really a risky idea yet ? still profitable right? though staking is far safer than just investing in meme coins that there are no concrete direction .
maybe I will choose investing in Bitcoin and some part will be staking and there are very small amount to put in meme coin , this is a complete diversification and safest.

Hype is never a good enough of a reason to invest into something. Doesn't mean that it wouldn't be a good one at the right time, but does it really worth the risk to invest into them right now with the hopes that you would be getting into it at the exact right moment before it takes off?

Other coins that are serious and fundamentally good are supported by the tech it has and the way they are growing, they are literally making it a big thing by working on it, whereas meme ones go up or down based on how much it's hyped or not. That is why I honestly do not believe that it would be a smart decision to invest into them. Staking stablecoins at least has a known future, calculated and can be known.

That was the case that investing and staking stablecoins is not good. I'd rather take the risk to shitcoins if that's possible where if I was too lucky I could earn more. That was going to be practical but as we are here in crypto, we better look at the opportunity where we can generate income as staking stablecoin almost give us nothing. If we know how to trade, I think this is even more profiting. 

Ouch, that was a big cut there but I wonder what is the reason for that deduction? I think with the past bad experience of some stable coins, they should increase their rates, that is for the people to get attracted again because many of them are like the OP now who are now skeptical about investing or staking their stablecoins online but anyways you're right that it is still better than the rates which banks are always offering and other than that, banks are also much riskier to the fact that they can freeze, restrict and use your funds without your consent. Situations between stable coins and staking platforms are seem to be stable now. The OP can get back on action again.

USDC-BUSD seems like a decent stablecoin for now. Its market cap looks very respectable at the moment and has a pretty high yield. What I think you're trying to do is take advantage of the lower-than-usual market volatility in USDT right now, and lock it in with USDC, knowing that you can later withdraw it at a higher price, thanks to the inverse relationship between the two coins. So while I would say this is a bit risky, I don't like to bet however that most of these trades will work out well. This can be great for making money fast in the cryptocurrency market.

Stablecoin stays the same without any change, USDC, USDT or BUSD is not the same as UST they are much more secure with UST. As for the choice of platform to bet on, I think it will be impossible to trust any other platform than binance, after the mass collapse of lending platforms. Although APY will not be as high as other platforms but at least it gives us a more secure feeling with our assets.

Staking on stable coins is indeed safe, but we also have to choose the platform, of course one of the best platforms right now is Binance,
because there stable coins have high APY like BUSD has almost 5% APY, of course I think it's a good choice if want to stake on Binance.

UST was their stable coin on the Luna platform. But UST was a junk coin.Due to which the Luna platform became completely destroyed.A fear crept into the people since this UST stubble became annihilation.They are also afraid of various stablecoins. USDT USDC and BUSD are all coins they are afraid to invest or save.But you can certainly stack or save USDT USDC and BUSD at a specific APY.But you won't have any ricks but will get a lot of profit.

Have different APY reward when staking between stable coins like USDC, USDT or BUSD than with Terra Luna network stable coins UST, many people got much losing when staking on UST stable coin after price drop drastically last several months. I think keep safety when staking with stable coins have guarantee with their exchange volume and they have support with their exchange market platform like BUSD for Binance market.

Still can't believing with other platform for staking stable coins except with Binance stable coins as BUSD than other stable coins kinds, ever last several weeks USDC drop few percent although success reach back and have the same price with BUSD as Binance stable coin. My view with under 10% APY reward for staking stable coins why not try deposit in the bank not have any different percentage given than stable coin.

Though it cut some percentages, it's still good for passive profits, instead of letting your money sleep in your bank which only give you lesser APY, you just need to learn and understand both risk and the possibilities of the amount your money will grow, plus all the security of the platform that you will going to deposit your money.

Not bad for the APY. You are doing nothing but just waiting and trust the system and if the situation permits you to hold, expect an increase from your initial deposit.

Binance offering 8% APY in USDT, but i see in the other exchanges Stable coin APY is higher than Binance but i'm not only looking for high APY because where you will keep your assets it’s very important. Right now, i staked my stable coins on the Binance, because it’s my first priority where i feel enough secure then other exchanges.

It's your personal choice as i feel that staking rewards are very low as compared to active trades rewards.

If i had a lot of stablecoins, i would rather try to trade them with altcoins and gain nice profits. I would not stake them to earn some very low passive income.

That's understandable. Staking stablecoins offers minimal risk, but you can't expect to yield massive results. Altcoin trading is way riskier and not many people are willing to take such a gamble. Personally, I do not do either. I'd rather find a steady source of income than constantly be on the edge of my seat. If I were to use this kind of money, I'd rather buy Bitcoin at least, in order to have some peace of mind. Supposing you have a decent amount of money, staking on Beefy or similar will provide you with a relatively decent passive income, since its interest isn't in tiers, compared to Binance, so the APY is applicable to the whole amount you've deposited.

Some stablecoin vaults are riskier than others, providing you with a higher APY than the BUSD/USDC/USDT ones, which look like the middle ground for investments. In the upcoming days, I'll distribute 30–50% of my funds on the following smart contract: https://app.beefy.com/vault/ellipsis-busd-jchf.

but keep in mind that all of that has a risk that we can take the example of the UST stable coin which has now become a useless junk coin.
i think you may have chosen a safe stable coin like USDT which has been recognized for a long time.
but at least do some research before staking on stable coins to avoid this ever happening.
and even now i also stakin stable coins on binance which i believe is safer without a doubt

I've been staking my altcoins on Binance for a very long time and I would say that they offer a good percent of interest depending on the altcoin that you want to stake and hold it on them for a long period of time. Just don't trust some of the staking program that offer HYIP investment and too good to be true and surely it will be a scam after the accumulated a lot of altcoins.

Staking with the wrong choice of HYIP are mostly scams and will take away all your stable coins. Many people have been victims of these manipulation and they have realized their mistakes while the new ones who are eager to make quick good returns on there coins ends up been scammed. Staking with the right choice brings profits but not that big, although it depends on the coin one is staking on. Binance is top exchange when it comes to trading and storing coins for long-term purpose.

I think staking stable coins is just a waste of time because the APY is only a few percent, and what I've seen is Binance can reach 5%,
I think it's better to just buy altcoins and hold for the long term, because altcoins can provide higher profits than staking stable coin.

Staking stablecoins, for now, is an excellent idea. However, due to the large dump that happened since the ATH, I would recommend to DCA for the potential of several X of return while also earning from staking. One that I would like to recommend $Rose token which is the token that the Oasis Protocol Network uses. They offer up to 20% APR and your chance for several X of return is huge provided that they are the leading privacy-enabled and scalable layer-1 blockchain network to propel Web3 forward. Have a great day OP!

When staking stable coins you must keep in mind your money isn't really growing, because your purchasing power is decreasing due to inflation much more than the APY they are paying you. Let's say you earn 10% yearly on your stable coins through Binance or any other platform, while the prices of the products at the supermarket are increasing much more than 10% on that same time period. In the end it doesn't worth to expect return over your stable coins. Better to invest in bitcoin and main altcoins expecting some nice returns in few years, while also earning interest over them if you wish.

You don't actually "stake" those stable coins. All most all stable coins can't be staked. What you do is actually lend your coins to the exchange and they use your coins different purposes and share a percentage with you.

The UST "stable" coin wasn't backed by any real world assets like USDT is backed. It was an algorithmic stable coin and there were people already claiming that UST is going to fail soon and that is exactly what has happened. You shouldn't be worried about USDT or USDC failing because they all are backed by real money and treasuries and is regulatory complaint. You should be more worried about leaving your coins in an exchange.

Holding and staking stable coins carries risks always remember these two pegs pose risks stable coins may lose their peg reducing their value the second danger is related to the investment platform we may have 10.000 on a platform that's hacked or goes bankrupt since the funds aren't insured we may lose everything before investing in any crypto exchange mentioned in this essay conduct your own homework do not use Celsius as of today stable coins are safer than other cryptocurrencies but their safety depends on how they're backed the issuer and future legislation The safest option should be chosen I didn't feel confident staking stable coins.

Stable coins are the safest for staking, you don't have any reason to be scared of volatility like BTC and others but make sure you pick the safest stable coins too, you don't want something like Luna uST to happy to you so go for something like BUSD , in fact I believe BUSD is safer than the other.

It's not waste of you if you aware about how to play it. I meant you must also aware about this the fact that if you wanna get huge return from staking and then you must provide more capital. How much return will depend on your capital. If you are having huge capital and then %5 will give you lots of money. If you are using only a few bucks and don't expect to get a big return. This is easy to calculate

Also, you need to know where you are staking huge amounts of stable coins. There is a risk involved in staking coins on centralized platforms.

This is not so simple as let's suppose you stake a lot of stable coins on an exchange and later that exchange scams or you are unable to withdraw. Do full preparation for all scenarios before you decide to stake many coins.

If you get more from staking than keeping money in bank is not worthy. Because it is in your complete own control. You can convert it to fiat at any time by taking necessary steps. There is no alternative to stable coins to protect against volatility. Staking on various platforms has the advantage of holding these stable coins. But staking should not be done on any risky platform to get more.

You're in a cryptocurrency forum suggesting that banks provide you with a guarantee for your savings, and for that reason, staking is unprofitable and not worth the risk. I don't know where you guys find such bank interests, because here even locked time deposits do not provide you with more than 0.10% interest.

Even the bank's investment programs do not offer a guarantee for your funds, with most of them offering petty APYs compared to cryptocurrencies and DeFi. Only deposits are protected, which won't yield more than a few euros per year. The most I've received is 2 euros every 3 months, having the triple money compared to Binance's savings option.

There are no guarantees when it comes to investing. That's the only way to battle rising inflation. If your money is sitting in the bank, it's losing value every year.

It will be decided on what kind of investor you are, if you can handle the risk I will go with your opinion but we all know that there are also conventional investors who are okay with small profits but in a much safer style compared with the high profit potential but the risk is huge in losing your investment. It's a case to case and always depends on the understanding and the takes of the investors style.

Though there's no right or wrong if you deal with your DYOR properly and you judge things according to your own understanding.

I have no interest in staking the stable coins I have. because when the value of the currency that is used as a stablecoin (Dollar) it turns out to have decreased in value. would be very bad. but if you look at the risk taken, it is safer if the coin at stake is a stablecoin. but I don't think it will give much benefit if we only bet a small amount. and if want to keep staking stablecoins then someone tell me it is better to use flexible staking. so we can still pull it if a time is needed. or if there is bad news like what happened to UST.

Among the lowest staking offers giving Apr/Apy is stable coins, until now I have never stained with a stable coin and prefer staking in the dynamic coins, of course this is a risky choice so before you are staking then Dyor. Because staking, although it looks beneficial, but if we are staking in new coins, of course the risk is higher than the staking on the top ranking coins.

currently need to review everything carefully, so as not to repeat the Luna case, actually with a large APY does not guarantee that our money is safe,
For me, if I want to save stablecoin to stake, it's better for me to save it in the bank than in the exchange

Higher APY means low stakers in that liquidity pool and low stakers means the token has no trading volume and very risky to invest. Most of this tokens usually have a high slippage percentage that kills the profit on staking. It's useless to hunt a high APY for a high volatile token because you can loss all your staking earnings that you save you save for a long time when the price dumps hard due to lack of interest of buyers.

Yes, you are right. if the stablecoins that we have are many. then it would be good if used for staking. because the benefits will be quite large. but if only a few stablecoins are owned then I myself prefer to be used as capital for day trading or fast trading or scalping. Scalping can even still profit from a meager price tag. but done quickly and repeatedly. so the benefits are many. but for beginners it will not be easy. because you really have to be able to read the movement of the chart pattern or at least understand the chart pattern. But if you have a stablecoin that isn't really being used, then staking doesn't matter as long as it's not for a long period of time. with flexible time may be better.

If people who feel no problem with the risk and they will take common tokens to be staked as it was offering more APY but for the people who prefer stable income based on their capital and then they will be taking the stable token. This is how market is working. It's actually depend with your decision. If you wanna go for stable token and then you must provide a lot of capital to gain good interest

Of course staking of stable coin it waste of time and we get small profit from staking. It's better then to buying altcoins and hold for a long term and short term to get profit. But it is little risk of buying altcoins