Would you stake stablecoins now?

[Ultegra134]

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If you feel Beefy is safe and better than binance then you can switch to Beefy. It is normal for APY to adapt to the situation. Do you want to be like UST?. APY is high but at some point it is not enough to pay interest causing mass collapse that cost us everything. I would still stay with binance, even though APY let me down a bit, but in return I feel safe in binance.

It's perfectly understandable for APY to fluctuate. There was no guarantee that it would be stable forever. However, even locked-interest plans have been severely affected. They guaranteed a 13.3% APY a couple of months ago and were always unavailable and/or had a very limited available quota. Now it's down to 4.7%, while flexible savings is actually less than 5% APY for anything over $1,000, which is close to nothing.

While I prefer Binance's safety, I'm going to try and diversify my money by starting to deposit some of the allocated funds on Beefy. The current APY is too insignificant to bother.

[1714092870]

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[1714092870]

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[sana54210]

I think it doesn't matter if the UST coin gives high APY because its value is unstable and the price is very low, other than that UST coin is not worth staking unless you are willing to accept the high risk of losing your investment, so it's better to stake BUSD even though the APY is not high but at least much more safer than the coins associated with Luna. However, your suggestion to save or invest in a bank is not an alternative option because the impact of inflation in many currencies has decreased, except for the option of holding USD rather than other currencies.

I think the high risk that it gives doesn't justify the small amount of reward that it is offering. I mean if I wanted to find something with high risk then I could have simply invested into some of the brand new pre-sale stuff and stake that and make like 1000%+ return a day, which we all know will tank very quickly, all of them do, and only maybe one or two could continue longer, and that risk is useless to me and foolish as well.

So, I am not staking UST, and I am not staking anything that is as risky. I am going to start staking ETH though, I do not have enough so I will use pools but I do believe that it would be a trustworthy coin with a good return and added bonus as staking.

[eXtremal]

Terra reminded me to believe in stable coin staking on the DeFi platform. it would be better if you do staking in binance with BUSD, they are more guaranteed safe with lower interest. It just requires more capital for bigger profits, than outside platforms which are still vulnerable.

[Smack That Ace]

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To be honest, I do not know what to advise you in this case. Yes, and I do not like to advise, as well as listen to other people's advice. But in this case, I support investments with Binance because I myself use this option. I consider it reliable because of the reputation of the exchange.

Well, that was because all of us have different market approaches. Some people will think that staking is a great opportunity to earn and yes, it was indeed profiting but not that much compared to trading. And the reason why some people couldn't make themselves confident of what to say for they have not even done this in real life or have less experience with this.
yes, I was using Binance as my staking platform and it was safe there. Choosing a reputable exchange really matter as we handed over them our money, our coins to stake.

Despite the fact that there is no such thing as 100% secure in the crypto market, I also find that binance is the most secure staking platform compared to any other. Staking does not give good returns like investing or trading but it is stable and passive, staking becomes really more useful to us in a bear market where we can hardly find profit on the market. Investment or staking are both risky, so we should only use idle money to use, not borrow money to participate in the crypto market. It's still the old saying: don't invest money you can't lose.

[FinneysTrueVision]

The yields on staking stablecoins usually tend to be really low. In Terra's case they had billions of dollars from the Luna Foundation to subsidize higher yields for a while until it collapsed. Some decentralized exchanges will incentivize you with their own native token to increase yields but those tokens usually dump hard and that extra APY will be reduced so much it is not worth it to stake stablecoins. If you only care about APY then centralized exchanges will be the better option in the long run.

[kryptocanon]

There indeed are many altcoins out there offering good APY and Evmos is one of them. I'd suggest you make your research on Evmos and probably put it into consideration. Believe me, it's worth putting money on.

[tygeade]

The yields on staking stablecoins usually tend to be really low. In Terra's case they had billions of dollars from the Luna Foundation to subsidize higher yields for a while until it collapsed. Some decentralized exchanges will incentivize you with their own native token to increase yields but those tokens usually dump hard and that extra APY will be reduced so much it is not worth it to stake stablecoins. If you only care about APY then centralized exchanges will be the better option in the long run.

That is quite true, the low return is something that should be very much in the minds of the people as not so bad though, if they want to stay in the fiat world. Imagine a scenario like this, you are in crypto, bought bitcoin and ethereum, and they went up so much that you imagine they will be eventually down, like bitcoin is at 100k and ETH is at 10k, and you want to get out. What do you do? You either go directly into fiat and cash out, or you go to stablecoins.

In that case, is it better to stake and earn something from them, or do you prefer if they stayed the same? I do not support staking stablecoins as an investment, but as an option, it’s better than just to hold them.

[cloudfir3e]

The yields on staking stablecoins usually tend to be really low. In Terra's case they had billions of dollars from the Luna Foundation to subsidize higher yields for a while until it collapsed. Some decentralized exchanges will incentivize you with their own native token to increase yields but those tokens usually dump hard and that extra APY will be reduced so much it is not worth it to stake stablecoins. If you only care about APY then centralized exchanges will be the better option in the long run.

I myself prefer to use Stabilcoin as a hedge and to transfer assets cheaply and quickly, rather than using it as staking.
such as USDT, which is one of the pioneer stablecoins launched in 2014, and is the most popular to date.
USDT value is guaranteed to be 1:1 to the US dollar.
Currently, USDT is one of the most popular stablecoins by market cap.

[mulia sabee]

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

Looks like Terra LUNA has started to bounce back. If you are thinking of getting in early by taking the risk that you are involved in, I believe entering a stable coin bet is a good choice. But that doesn't mean we don't get risk if we invest in the long term because no one knows when bad things will happen and happen to this platform.

[abralzain17]

personally i stake Stablecoins just to keep assets. the rest is good for investment I don't do with stablecoins. I think to keep the value the same then we should be able to change it in stablecoins and this is safer in my opinion

[Ultegra134]

The yields on staking stablecoins usually tend to be really low. In Terra's case they had billions of dollars from the Luna Foundation to subsidize higher yields for a while until it collapsed. Some decentralized exchanges will incentivize you with their own native token to increase yields but those tokens usually dump hard and that extra APY will be reduced so much it is not worth it to stake stablecoins. If you only care about APY then centralized exchanges will be the better option in the long run.

You can't expect a vault or coin that is pegged at $1 to have excessive yields. There were some algorithmic stablecoins that offered great yields in the past but were quite risky, and I'm not talking about UST, but for BoltDollar (BTD), MonsterSlayerCoin (MSC), or even Iron.Finance. The first one made more than $1,000 in less than a month, while Iron made $200 in a month before getting hacked on Polygon Blockchain and being removed entirely.

I currently have very limited time and haven't bothered moving my funds to Beefy yet, but I noticed that the safest options on Beefy have also decreased APY, averaging 8–10% at most, compared to 10–12% a week or so ago. It's still better than Binance's, because it's covering the whole amount.

[lalabotax]

I never stake stablecoins because I think the value of stablecoins won't be so much changed (increase) although we get a high APY for staking it. I prefer to stake Bitcoin or ETH, I think collecting more of these coins will be more worthed since their values can grow significantly in the future. Regarding UST, it doesn't reflect the potential of all stablecoins, it is only a rare case of stablecoins. So, why you must be worried about that case? Other stablecoins have other fundamentals or factors to support the value.

[Ahli38]

I keep my reserve funds on stablecoins. and of course i bet it too. although it doesn't make much of a difference. but it's much better than nothing. I use BUSD as a stablecoin. because so far only BUSD has never had any bad news about it. and I use the flexible staking feature so I can use my BUSD when I need it like to buy bitcoins when it drops deeper. I don't dare stake for years. I prefer flexible staking. and it's on binance.

[Tessyb]

It's understandable to when past incidence are reviewed before making present decisions. There's no doubt that the issue of UST left scars in the heart of holders and Infact everyone who followed the news. But to be candid that issue was expected because we all know that altcoin are unstable and pegging a stable coin on an unstable altcoin could spell doom. I know usdt and busd are more reliable owing to the fact that the stability of the coin is pegged to fiat.

[btc78]

staking usdt and the likes is better idea than investing in meme coin that fluctuates massively. I think even though it gives relatively low return it still better since it has low chance of making you lose all your investments in the long run meanwhile meme coin in general could literally make your investments vanish into thin air.
of course if you have bigger capitals you will definitely get more returns in the long term.

that's a pretty good understanding. this is indeed better than choosing a meme coin to invest in. however, although the benefits are small, but this is better done while holding the money we have. Unfortunately, if it's a large amount, I might consider a bank deposit more. it may be safer, and awake. however, until now, I still haven't staked on the stable coin that I own. it's probably because I'm more active in trading than stake.

not at all time , because if you do remember back in 2021 that Meme coins such as Dogecoin and Shiba Inu makes its hype and brings greatest profit from its holder and investors though this is really a risky idea yet ? still profitable right? though staking is far safer than just investing in meme coins that there are no concrete direction .
maybe I will choose investing in Bitcoin and some part will be staking and there are very small amount to put in meme coin , this is a complete diversification and safest.

[tygeade]

staking usdt and the likes is better idea than investing in meme coin that fluctuates massively. I think even though it gives relatively low return it still better since it has low chance of making you lose all your investments in the long run meanwhile meme coin in general could literally make your investments vanish into thin air.
of course if you have bigger capitals you will definitely get more returns in the long term.

that's a pretty good understanding. this is indeed better than choosing a meme coin to invest in. however, although the benefits are small, but this is better done while holding the money we have. Unfortunately, if it's a large amount, I might consider a bank deposit more. it may be safer, and awake. however, until now, I still haven't staked on the stable coin that I own. it's probably because I'm more active in trading than stake.

not at all time , because if you do remember back in 2021 that Meme coins such as Dogecoin and Shiba Inu makes its hype and brings greatest profit from its holder and investors though this is really a risky idea yet ? still profitable right? though staking is far safer than just investing in meme coins that there are no concrete direction .
maybe I will choose investing in Bitcoin and some part will be staking and there are very small amount to put in meme coin , this is a complete diversification and safest.

Hype is never a good enough of a reason to invest into something. Doesn't mean that it wouldn't be a good one at the right time, but does it really worth the risk to invest into them right now with the hopes that you would be getting into it at the exact right moment before it takes off?

Other coins that are serious and fundamentally good are supported by the tech it has and the way they are growing, they are literally making it a big thing by working on it, whereas meme ones go up or down based on how much it's hyped or not. That is why I honestly do not believe that it would be a smart decision to invest into them. Staking stablecoins at least has a known future, calculated and can be known.

[Natalim]

Now the APR rate of stablecoins has reduced further . a month ago i seen Binance offer 10% interest for USDT & BUSD. but now thay reduced for 2% and make 8% APR. if we compare with our central bank interest then stable coin interest rate still good. coz our central bank offer us 5-6% of interest with huge terms & condition and Government vat .

That was the case that investing and staking stablecoins is not good. I'd rather take the risk to shitcoins if that's possible where if I was too lucky I could earn more. That was going to be practical but as we are here in crypto, we better look at the opportunity where we can generate income as staking stablecoin almost give us nothing. If we know how to trade, I think this is even more profiting. 

[jostorres]

Now the APR rate of stablecoins has reduced further . a month ago i seen Binance offer 10% interest for USDT & BUSD. but now thay reduced for 2% and make 8% APR. if we compare with our central bank interest then stable coin interest rate still good. coz our central bank offer us 5-6% of interest with huge terms & condition and Government vat .

Ouch, that was a big cut there but I wonder what is the reason for that deduction? I think with the past bad experience of some stable coins, they should increase their rates, that is for the people to get attracted again because many of them are like the OP now who are now skeptical about investing or staking their stablecoins online but anyways you're right that it is still better than the rates which banks are always offering and other than that, banks are also much riskier to the fact that they can freeze, restrict and use your funds without your consent. Situations between stable coins and staking platforms are seem to be stable now. The OP can get back on action again.

[$anounimus$]

Any suggestions or what to look for?

USDC-BUSD seems like a decent stablecoin for now. Its market cap looks very respectable at the moment and has a pretty high yield. What I think you're trying to do is take advantage of the lower-than-usual market volatility in USDT right now, and lock it in with USDC, knowing that you can later withdraw it at a higher price, thanks to the inverse relationship between the two coins. So while I would say this is a bit risky, I don't like to bet however that most of these trades will work out well. This can be great for making money fast in the cryptocurrency market.

[hichamito37]

Now the APR rate of stablecoins has reduced further . a month ago i seen Binance offer 10% interest for USDT & BUSD. but now thay reduced for 2% and make 8% APR. if we compare with our central bank interest then stable coin interest rate still good. coz our central bank offer us 5-6% of interest with huge terms & condition and Government vat .

Ouch, that was a big cut there but I wonder what is the reason for that deduction? I think with the past bad experience of some stable coins, they should increase their rates, that is for the people to get attracted again because many of them are like the OP now who are now skeptical about investing or staking their stablecoins online but anyways you're right that it is still better than the rates which banks are always offering and other than that, banks are also much riskier to the fact that they can freeze, restrict and use your funds without your consent. Situations between stable coins and staking platforms are seem to be stable now. The OP can get back on action again.

Stablecoin stays the same without any change, USDC, USDT or BUSD is not the same as UST they are much more secure with UST. As for the choice of platform to bet on, I think it will be impossible to trust any other platform than binance, after the mass collapse of lending platforms. Although APY will not be as high as other platforms but at least it gives us a more secure feeling with our assets.