Has anyone used compound.finance?

[SiverSurfer]

I am thinking of putting my DAI into compound.finance due to the high interest rates now, at about 20%. The interest rates fluctuate but it is not locked and I can withdraw my DAI out easily.

Has anyone tried it?

[btcltcdigger]

Yes, i have actually.
Been meaning to write a short intro and tutorial for it.
Interest fluctuates, but i't been 8%+ since i started, so really good.
And you get interest daily, which is nice.

[ATSgrowth]

Wait for the market stabilization because if you lend now, you can easily lost your cryptocurrencies because the value of your crypto collateral become insufficient. The best time for a loan is at the beggining of the new growth cycle.

[SiverSurfer]

Wait for the market stabilization because if you lend now, you can easily lost your cryptocurrencies because the value of your crypto collateral become insufficient. The best time for a loan is at the beggining of the new growth cycle.

Hi, I am aware of the volatility today but what does that have to do with compound.finance? I thought in this scheme I just store my DAI with them and get the unlocked interest rates ? Or am I missing something ? Thanks.

[btcltcdigger]

Wait for the market stabilization because if you lend now, you can easily lost your cryptocurrencies because the value of your crypto collateral become insufficient. The best time for a loan is at the beggining of the new growth cycle.

Hi, I am aware of the volatility today but what does that have to do with compound.finance? I thought in this scheme I just store my DAI with them and get the unlocked interest rates ? Or am I missing something ? Thanks.

Not missing anything. The system works on a principle where you have to deposit more than you can borrow.
I've depposited some DAI and am getting daily interest. Atm due to market, interest is around 20%/y, but it's usually 8%

[SiverSurfer]

Wait for the market stabilization because if you lend now, you can easily lost your cryptocurrencies because the value of your crypto collateral become insufficient. The best time for a loan is at the beggining of the new growth cycle.

Hi, I am aware of the volatility today but what does that have to do with compound.finance? I thought in this scheme I just store my DAI with them and get the unlocked interest rates ? Or am I missing something ? Thanks.

Not missing anything. The system works on a principle where you have to deposit more than you can borrow.
I've depposited some DAI and am getting daily interest. Atm due to market, interest is around 20%/y, but it's usually 8%

Thanks.

Which means that to borrow I have to over collaterize, and to save I just need to put my DAI in it and get the current 20+% ?

[btcltcdigger]

Wait for the market stabilization because if you lend now, you can easily lost your cryptocurrencies because the value of your crypto collateral become insufficient. The best time for a loan is at the beggining of the new growth cycle.

Hi, I am aware of the volatility today but what does that have to do with compound.finance? I thought in this scheme I just store my DAI with them and get the unlocked interest rates ? Or am I missing something ? Thanks.

Not missing anything. The system works on a principle where you have to deposit more than you can borrow.
I've depposited some DAI and am getting daily interest. Atm due to market, interest is around 20%/y, but it's usually 8%

Thanks.

Which means that to borrow I have to over collaterize, and to save I just need to put my DAI in it and get the current 20+% ?

Yea, exactly.
I'm not sure its 20% anymore as it fluctuates, but that's the idea of it

[SiverSurfer]

Wait for the market stabilization because if you lend now, you can easily lost your cryptocurrencies because the value of your crypto collateral become insufficient. The best time for a loan is at the beggining of the new growth cycle.

Hi, I am aware of the volatility today but what does that have to do with compound.finance? I thought in this scheme I just store my DAI with them and get the unlocked interest rates ? Or am I missing something ? Thanks.

Not missing anything. The system works on a principle where you have to deposit more than you can borrow.
I've depposited some DAI and am getting daily interest. Atm due to market, interest is around 20%/y, but it's usually 8%

Thanks.

Which means that to borrow I have to over collaterize, and to save I just need to put my DAI in it and get the current 20+% ?

Yea, exactly.
I'm not sure its 20% anymore as it fluctuates, but that's the idea of it

I am fine with fluctuation, it’s ok to go sub 20%. I am just impressed (perplexed) that they can do 20% when Celsius and blockfi and likes can only do 8%. I don’t want to call it a get rich quick scheme (scam) as there is some smart contract element but I have some doubts as to whether are people willing to borrow my savings for over 20% interest rates on the other side of the table.

[Stanlo]

The problem here is for how long will you get paid? I've put over a thousand dollars in project with low interest every month, it fluctuate just like you said and after few months no more payouts, it's one reason I can't trust staking websites

[SiverSurfer]

OK, I am experimenting it before going into the plunge. Here goes the screenshot, for record keeping ;-)



PS: It has dropped from 20+ % to 11.46% in two days, probably due to the heavy liquidation that happened, though I am still wrapping my head around the causation aka "does interest rate go up with BTC price goes down?"

[SiverSurfer]

The problem here is for how long will you get paid? I've put over a thousand dollars in project with low interest every month, it fluctuate just like you said and after few months no more payouts, it's one reason I can't trust staking websites

That's true man, I have my doubts too even if I am trying it now.

They claim that there is a smart contract element that allows them to feed buyer and seller hence no centralization, but how do we check?

[Doranile432]

See I couldn't stake coins because you will need to send out your coins to a staking address, I have hard time trusting that, even wallets that supports POS you still need to make deposit, why can't the staking works out of the box? The most dangerous part are exchanges services for POS and Lendings, people are crazy enough to trust these exchanges either top exchanges or not with their funds, good luck with that and happy earning

[SiverSurfer]

See I couldn't stake coins because you will need to send out your coins to a staking address, I have hard time trusting that, even wallets that supports POS you still need to make deposit, why can't the staking works out of the box? The most dangerous part are exchanges services for POS and Lendings, people are crazy enough to trust these exchanges either top exchanges or not with their funds, good luck with that and happy earning

In this case it's connecting Metamask, but it's same-old, the danger element doesn't go away.

[rahmatullah9305]

The problem here is for how long will you get paid? I've put over a thousand dollars in project with low interest every month, it fluctuate just like you said and after few months no more payouts, it's one reason I can't trust staking websites

Yes, investing in a website is very risky, because on average there is no permanent website in terms of payment, and sometimes there are closed without any reason, so who trust the website for an investment must be more Be Careful.

[btcltcdigger]

OK, I am experimenting it before going into the plunge. Here goes the screenshot, for record keeping ;-)



PS: It has dropped from 20+ % to 11.46% in two days, probably due to the heavy liquidation that happened, though I am still wrapping my head around the causation aka "does interest rate go up with BTC price goes down?"

I believe the interest rate goes up with the demand.
People have alot of money in compound DAI, and now that the market is down, people are borrowing DAI to invest in cheap BTC/ETH.
By doing so, the demand grows, and i believe, with it the interest %.

Just like Uber, if there's a shortage of free drivers, the price goes up.

[DDante]

For those borrowing Dai to invest in BTC or Eth what makes them think that Bitcoin won't fall further anymore? It's still unwise choice to me, one can easily get rekt if care is not taken, invest only what you can afford to lose, borrowing can put you in more debts

[tiang_tower]

For those borrowing Dai to invest in BTC or Eth what makes them think that Bitcoin won't fall further anymore? It's still unwise choice to me, one can easily get rekt if care is not taken, invest only what you can afford to lose, borrowing can put you in more debts

Yes, that's right, borrowing other people's assets in any form is debt, and it would be very risky if we borrow only to make investments in crypto, because investing in crypto is very vulnerable to loss, although sometimes there is a profit that is up to double that of basic capital, but it is only limited to luck, and not all investments are equally profitable for everyone, so I strongly agree that investing is enough to our ability when experiencing loss.

[Ken_terrance]

This website can exit on you at any freaking time, I couldn't even trust binance and Kucoin that's why I don't stake on them, hackers can hack those websites anytime and if you are unfortunately them won't be able to reimburse your money

[btcltcdigger]

Well any form of investing can go bad and screw you over.
Banks can bankrupt, investment funds can go broke, stocks can go under.
Even gold can be devaluated to a point where you panic and sell.

It's all up to you to DYOR and decide if the system is for you or not.
IMHO, money should be making money, not just sit in an old smelly sock under your mattress.

[SiverSurfer]

For those borrowing Dai to invest in BTC or Eth what makes them think that Bitcoin won't fall further anymore? It's still unwise choice to me, one can easily get rekt if care is not taken, invest only what you can afford to lose, borrowing can put you in more debts

You have a point, but we are discussing about lending on compound.finance not borrowing.