Bitcoin Forum

After a fourth reduction since I deposited my stablecoins on Binance's savings and staking options, I decided to withdraw all my funds, provided that I find a decent alternative, preferably decentralized. Binance is now offering only 6% APY on BUSD and 5% on USDT, for up to $1.000 on each option. It's honestly too little to stay; it used to be 10% of $2.000. I found a few vaults on Beefy ranging from 8–12%, which isn't too bad. However, the one that struck me the most was OKx's saving plans.

The OKx exchange is offering 10% for up to $2,000 per stablecoin (USDC, USDT), but on one condition. That you submit for Level 2 KYC, which includes your personal details plus a photo of your ID. Surprisingly, the KYC process requires far less information compared to Binance. What are your thoughts about this? 10% isn't bad; it doesn't state for how long it's valid, but it's quite competitive with Beefy's vaults.

https://www.okx.com/earn/stablecoin

I think you didn't missed FTX bankruptcy news right? any users who have coins on FTX are gone since they can't withdraw their coins. I would risk to get 10% for up to $2,000 because I will just risking all of my money, it doesn't funny if I lose all of my money that I was accumulate since long time until right now. OKx is centralized and I don't think there's a decentralized platform who offer staking feature. The real decentralized platform was created isn't for to make profit.

He missed it.

By just depositing your coins, you get 6% APY. Ain't that too good to be true?  Even the youtuber financial advisers know it's too good to be true but they are promoting staking on CEX. They weren't even aware of the risk. Binance is a trusted exchange we just don't know when they're gonna flip until we lost it all like the celebrities promoting FTX.

I didn't acknowledge the existence of the FTX exchange before its bankruptcy. Don't get me wrong, I'm not supporting the usage of OKx for staking; I'm mostly concerned that they're offering a significantly higher APY (10% instead of 2%), just by verifying your ID. Why does it make such a huge difference?

My main question is where you'd stake your stablecoins now. The only decentralized platform I have used and am comfortable using is Beefy, but I'm pretty sure there are others out there. I'd prefer if a user here could recommend one, not because I can't do my own research but because sometimes blogs and websites might be promoting a specific one on purpose.

No where, because it doesn't like the idea of staking. I choose cryptocurrencies because I want to avoid how banks make money out of our savings while giving us very little interests in return.

Someone help me understand, What's the point of risking one's funds to stake for a 10% APY if I can make that very amount is a very short time with a perfectly executed purchase of bitcoins on the dip?

Well, like you said OKx is offering unusually high APY compared to the market while binance is only 6%, maybe they are trying to promote to attract users. Whatever the reason behind it, it is not reliable to leave money in centralized exchanges nowadays, after the FTX crash, most of the investors massively withdrew their entire assets to their personal wallets. As a top priority right now, assets should be stored in a non-custodial wallet and not invested or left on any exchange.

Exactly. This is also what I am thinking, lol. This is not the first time. If you remember Terra Luna, they have this platform called Anchor where you need to stake LUNA's stablecoin UST with high APY. And shit happens, their APY is 20% which you will get the 20% for a year but in just a day you will lose more than 20% of its value. Really not worth, and now this FTX exchange happened. It's totally devastating.

Not your keys…. Not your crypto…. Non custodial wallet!!!! Cold storage wallet!!! The whole point of crypto is to cut the middle man. So why leave your money on an exchange where they have custody of your funds. Exchanges are good to purchase crypto but you gotta move your funds to a non custodial wallet or a cold storage right after.

I would say No.

After collapses of Terra (20% APY), Voyager, Celcius, Three Arrows Capital and recently FTX, staking any coin including stable coin on any platform is a risky and even can be called as stupid idea.

Because you have to accept a loss of your control on your coin and you don't know how user money (including yours) will be handled by that platform? Will they use user capital sent to their platform for staking in order to join Ponzi scheme or use it as collateral for their high leverage bet?

As much as I'd like to disagree with you, you're right. The thing with staking is that you practically have a semi-steady source of income every month, no matter what. It feels similar to having money in a bank account but with much higher interest. However, back when I was actively trading Bitcoin, most of my trades yielded an average of 7–10% return, which was approximately 30–40 dollars per successful trade. Even with two successful trades per month, my profit was way higher than what stablecoin staking is generating.

Oh, so Binance has already changed their APY for staking stablecoins. Before it was like 8%-10% for a $2k maximum deposit, I saw it too, and then the rate will drop when you get to deposit and stake more than $2k.
Now, it's like 5%-6% and $1k maximum for that interest rate. Well, that's a sudden change and that's why we should be careful where we're staking our assets even if they're the most known exchange worldwide, still, those rates/APY will change at their will. I guess that's normal for them to still sustain everyone's deposits.