Would you stake stablecoins now?

[Ultegra134]

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

[1714920040]

1714920040

[asriloni]

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.

[OcTradism]

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?

[Yamifoud]

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.

[cryptoaddictchie]

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.

[goaldigger]

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.

[electronicash]

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.

[Ultegra134]

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.

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?

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.

[Xal0lex]

-snip-
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

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%.

[Bitstar_coin]

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

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.

[serjent05]

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?

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%.

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.

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

[Ultegra134]

-snip-
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

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%.

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.

[|MINER|]

~snip~

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.

[batang_bitcoin]

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?

[Jaered]

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

[Luqman]

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.

[Ultegra134]

~snip~

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.

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%.

[serjent05]

~snip~

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.

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.

[Johnyz]

~snip~

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.

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.

[Ultegra134]

~snip~

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.

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.

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).