Would you stake stablecoins now?

[ije07]

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.

[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.

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.

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.

[Questat]

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.

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.

[KennyR]

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.

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.

[Tony116]

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.

[bhooscream]

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.

[philipma1957]

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

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

[Ultegra134]

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?

[cabron]

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 experience going there, I think you can decide for yourself. some people have been traumatized by the events of Terra USD. I think staking in stable coins is indeed the best way to earn money, but the risks are always balanced, I still remember the events of Terra USD. Until the market stabilizes, I don't have to stake money even if it's a stable coin. but if you dare to take the risk you can do it too.

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

[Oneandpure]

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.

[Ultegra134]

If you have experience going there, I think you can decide for yourself. some people have been traumatized by the events of Terra USD. I think staking in stable coins is indeed the best way to earn money, but the risks are always balanced, I still remember the events of Terra USD. Until the market stabilizes, I don't have to stake money even if it's a stable coin. but if you dare to take the risk you can do it too.

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.

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?

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.

[lvsca]

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.

[kojektea]

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.

[AnonBitCoiner]

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.
 

[Kavelj22]

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.

[Xal0lex]

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.

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.

[bitcoin-shark]

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

[bitbollo]

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

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....

[Busayo10]

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

[cabron]

If you have experience going there, I think you can decide for yourself. some people have been traumatized by the events of Terra USD. I think staking in stable coins is indeed the best way to earn money, but the risks are always balanced, I still remember the events of Terra USD. Until the market stabilizes, I don't have to stake money even if it's a stable coin. but if you dare to take the risk you can do it too.

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.

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?

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.

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.