4% APY on Bitcoin

[stompix]

I'm not saying they're legit, but the screenshot does show a cap of 1.8 million USDT and 120 BTC. That number is fairly reasonable especially since the plan is only for a week.

Well, I was not accusing them outright of being a Ponzi, actually, I'm quite sure that the first batch of clients in the 7 days plan will get their earnings, it's just that such percentage in interest normally would trigger a red flag from the community, if a new exchange would try this method to attract new users it will get way more attention than it wanted and not the kind it was looking for. For the rest, I doubt that 4% is going to be viable for a prolonged period, it has already dropped to 3.5%.

That said, it's weird for an exchange that claims daily volume trading in billions to look for funds to borrow from customers at these rates. Promotion, yeah maybe, a publicity stunt, you might be right and everything is actually harmless but afters years of unfortunate events in the crypto environment I'm looking with suspicion on everything, especially when it comes to a way of earning money doing nothing.

[o_e_l_e_o]

That number is fairly reasonable especially since the plan is only for a week.

I agree, and the most likely outcome here is that you deposit your coins and get paid the interest as advertised. But there is a not insignificant possibility that Huobi make a few bad investment decisions and your coins are lost. Not worth the risk.

That said, it's weird for an exchange that claims daily volume trading in billions to look for funds to borrow from customers at these rates.

It's the same as banks. Whatever they are offering their customers, they know they can make more than that using customer's money and pocket the difference as profit. With banks it is expected - it is no secret they run a fractional reserve system and the money you deposit is either loaned by the bank to other customers or invested in various assets or vehicles. With crypto exchanges it is different - people (naively) expect that when they deposit bitcoin to an exchange, and exchange simply "looks after it" for them. As I said above, Huobi have already been caught investing customers' deposits in high risk investment programs. If you deposit your coins for this 4% ROI, then your coins will be invested similarly, and therefore you might not get them back.

[figmentofmyass]

That said, it's weird for an exchange that claims daily volume trading in billions to look for funds to borrow from customers at these rates. Promotion, yeah maybe, a publicity stunt, you might be right and everything is actually harmless but afters years of unfortunate events in the crypto environment I'm looking with suspicion on everything, especially when it comes to a way of earning money doing nothing.

it's pure gimmick IMO. they're just riding the defi train---everybody wants to get paid interest on their crypto now. it's just a marketing ploy to ride that wave and snag some new customers. coinbase is doing customer loans now too for the same reason. it's mainly to get customers to lock up their funds at the exchange, which probably makes them much easier to retain as trading customers.

huobi also provides centralized margin lending---charging 0.0980% daily interest rates to traders at this moment. compounded daily, this is more than 10x the effective annual rate they are paying out to lenders with this "savings" account. if they are using this mechanism to provide liquidity for margin funding, then it makes sense. binance does the same thing and just stops making new offers to borrow when there is too much lending liquidity.

[bitbollo]

Pretty cool deal Huobi has for BTC you just use Huobi Savings and get 4% on you BTC!

I wanted to share this to make sure if you holding it in a wallet - get some easy returns.

https://www.huobi.com/en-us/savings/

It's nothing new since the same return of 4% is also offered by freebitco.in
They are able to guarantee these returns with mining and betting activities. and they are free to change this return at any time.
however not owning the private keys is always a potential risk that is better to be avoided...

[palukritik]

thats preety cool actually..
since huobi never hacked...
instead of trading , if you guys hodl guy, i suggest this is one of the option for getting sats

[o_e_l_e_o]

since huobi never hacked...

That's a fairly meaningless metric to go on. Every exchange that has been hacked (the majority of them) was "never hacked" at some point. You have absolutely no idea how good or otherwise Huobi's security systems and procedures are, so you are taking it on blind trust that they won't be hacked in the future.

Regardless, even if you decide you trust that their servers won't be hacked, you still have to worry about the security of your own account (phishing, hacks, malware, etc.), how your funds are going to be used (loans, trading, investments, etc.), if they will be safe while being used for those purposes (bad investments, bad trades, borrowers defaulting on payments, etc.), and all the other things which could happen to Huobi while your funds are on their exchange (scamming, shutting down, regulations, fines or penalties, excessive KYC, etc.).

It is a lot of risk to take for a small return.

[Lanatsa]

since huobi never hacked...

That's a fairly meaningless metric to go on. Every exchange that has been hacked (the majority of them) was "never hacked" at some point. You have absolutely no idea how good or otherwise Huobi's security systems and procedures are, so you are taking it on blind trust that they won't be hacked in the future.

Regardless, even if you decide you trust that their servers won't be hacked, you still have to worry about the security of your own account (phishing, hacks, malware, etc.), how your funds are going to be used (loans, trading, investments, etc.), if they will be safe while being used for those purposes (bad investments, bad trades, borrowers defaulting on payments, etc.), and all the other things which could happen to Huobi while your funds are on their exchange (scamming, shutting down, regulations, fines or penalties, excessive KYC, etc.).

It is a lot of risk to take for a small return.

Majority do have this kind of fixed mindset that's why they do end up on trusting much into the platform that they've been using until when the hack happens then that the time they would talk
to themselves that they musnt have done it.

We would never know on when a hack do happen on a certain exchange no matter how flawless it is on the past years that had been operating but doesn't guarantee that it would be completely safe
from attacks.

4% or even 10% on annual basis wont really be worth for the risk.