Is it worth staking stablecoins?

[Abiky]

I have some USDT and USDC in my portfolio that I'd want to stake in a "De-Fi" dApp without worrying about it in a long time. There are liquidity pools in Uniswap with attractive stake rates, but there's also Compound.Finance with its lending services. Both of these platforms are built on the ETH blockchain, so gas fees would be astronomically high. I've read about some platforms being compatible with Polygon (MATIC), but I'd have yet to see if it's worth the shot (especially in terms of security/reliability).

Do you know the safest way to stake stablecoins without breaking the bank? Also, do you think it's worth it? Or should I consider other options? Any suggestions and/or recommendations would be greatly appreciated. Thanks in advance.

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[blockman]

Every gain that it gives is worth it. But most of these platforms have their own risks based on the security that they have. If it's for these De-Fi apps, they're mostly being targeted and sometimes, a bug can be seen and abused by users.
When it happens, the funds are being sucked by those abusers and then if they're hacked, you don't expect something in return through a refund because, at most times, they don't have a reserve. As for the other options, the best possible other options you can make is to convert it to bitcoin.

[Bialke]

Fantom is building a new Stablecoin.

But overall I woud go out the Stablecoin-Space - In the moments Spookyswaps Boo is very cheap, and there are great staking opportunitys in the Fantom ecosystem.

[kizlod]

Stacking stables is not actually stacking, you actually give your coins to someone, and if he loses it he might not give it back to you. So it's not the safest and best choice. I've seen that they might provide 10-15% API or more, and that sounds really dangerous, it's too high for low risk. I use stablecoins for transactions, I don't see any reasons to hold and stack them.

[Apocollapse]

If I were you I'd choose to invest my fiat to time deposit or bonds, fiat and stable coin is same because the price is always stick $1. In banks my funds are insured, it's not like an unknown centralized sites where they're not responsible when anything bad happen in the future.

But since I can choose Bitcoin where the ROI will be higher than stable coin and the security is very safe if you hold on hardware wallet, there's no point for me to hold large amount of fiat or stable coin.

[Xal0lex]

In my opinion, the safest and most reliable way of staking Stablecoins are the pools in Curve. The pools there are created exclusively for stablecoin, and there are pools not only with liquidity allocation between 2 assets, but also more exotic ones with 8 or 10 assets, as far as I remember. Although I can't say that Curve offers great rates on stablecoin staking, but when it comes to platform reliability, percentages shouldn't be the deciding factor when choosing a platform for staking.

[Pierre 2]

I think safest way to stake stablecoins is to deposit them on your binance account. After this you can just open earn section. In that section there are some alternative defi options. As far as I remember there are also locked stable coin staking options. These can profit a lot considering their low risk. Binance warns users that they may completely lose what they deposit through this section's defi option. Although I think Binance picks safer options.

[Mpamaegbu]

Late last year, I had a taste of what it is when people say it's very risky to stake. Before then I had successfully staked on several occasions and cashed out. It's passive income when the going is good. However, the experience of losing one's assets on staked site isn't something anyone with a high blood pressure should witness. I staked thousands of KCLP and Kroots on the kclp site, believing doing it there would guarantee safety more than on any other site since it's their token, and then one day the rugged thing happened. Everything just disappeared into thin air. My only consolation whenever I remember what happened now is that the prices of those tokens dipped weeks before that incident so much that the quantities I had weren't worth that much again.

[jrrsparkles]

You forgot about the inflation rate? I will not recommend staking stable coin for long term cause the returns probably compromised by the inflation or in worse situation the actual value maybe lesser than when you staked if inflation rate is higher than expected so don't stake it and if you still want to go for long term then convert them to BTC and use trusted staking platform.

[Adbitco]

I hardly stake my stablecoin or bitcoin because i don't know which platform that will be reliable and trusted to stake one's token and coin, when we mention of Centralized exchange with what is going on recently there's no guarantee on your asset or insurance that would covers your assets in any of those platform. There's always a says that said " It is better to chase a black goat at day than the night" because at then it could be very difficult to locate. In full translation; Do not use because of staking percentages and lost all your funds rather could be idea to convert all your assets to bitcoin in a trusted and self costudian wallet to store your assets than just getting all disappeared without any strong backup. The choice is yours and Binance will be the best for staking if you still feels like staking your stablecoin.

[Xal0lex]

The choice is yours and Binance will be the best for staking if you still feels like staking your stablecoin.

There is nothing worse than staking on a centralized exchange. Apparently you are forgetting some safety rules. Don't keep your money on centralized exchanges, for example. That is extremely bad risk management. Also don't forget that exchanges very often change terms and staking rates, even after you blocked the coins. At blocking there were one conditions, after unblocking there are other conditions. So, the last place to recommend centralized exchanges for staking is in the last place.

[Adbitco]

The choice is yours and Binance will be the best for staking if you still feels like staking your stablecoin.

There is nothing worse than staking on a centralized exchange. Apparently you are forgetting some safety rules. Don't keep your money on centralized exchanges, for example. That is extremely bad risk management. Also don't forget that exchanges very often change terms and staking rates, even after you blocked the coins. At blocking there were one conditions, after unblocking there are other conditions. So, the last place to recommend centralized exchanges for staking is in the last place.

I didn't miss any or forgotten it, I categorically made it known that no centralized exchange is trusted any more however is of a choice if he wishes to stake his stablecoin. I know too well he knows the implications of centralized exchange so we don't to get bother over this.

[Abiky]

Every gain that it gives is worth it. But most of these platforms have their own risks based on the security that they have. If it's for these De-Fi apps, they're mostly being targeted and sometimes, a bug can be seen and abused by users.
When it happens, the funds are being sucked by those abusers and then if they're hacked, you don't expect something in return through a refund because, at most times, they don't have a reserve. As for the other options, the best possible other options you can make is to convert it to bitcoin.

The fact that there's no way to claim stolen/hacked funds alone, makes me quite skeptical about "De-Fi". But adding a third-party to help solve this, would greatly "De-Fi's" original purpose of "being your own bank". I guess that's the cost you pay for decentralization and censorship-resistance. It will be up to you to DYOR regarding the "De-Fi" app you're willing to deposit stablecoins into, before regretting yourself in the long run.

If the code of the smart contract has not been audited by a reputable security company, then the risk of losing your funds would be extremely high. Even those smart contracts that are audited, have their own set of issues (nothing's perfect anyways). I'd cash out my stablecoin profits as quickly as I can to help prevent losing it all in an instant. Who knows if "De-Fi" improves over time until it becomes a "force to reckon with"? Just my thoughts

[blockman]

Every gain that it gives is worth it. But most of these platforms have their own risks based on the security that they have. If it's for these De-Fi apps, they're mostly being targeted and sometimes, a bug can be seen and abused by users.
When it happens, the funds are being sucked by those abusers and then if they're hacked, you don't expect something in return through a refund because, at most times, they don't have a reserve. As for the other options, the best possible other options you can make is to convert it to bitcoin.

The fact that there's no way to claim stolen/hacked funds alone, makes me quite skeptical about "De-Fi". But adding a third-party to help solve this, would greatly "De-Fi's" original purpose of "being your own bank". I guess that's the cost you pay for decentralization and censorship-resistance. It will be up to you to DYOR regarding the "De-Fi" app you're willing to deposit stablecoins into, before regretting yourself in the long run.

If the code of the smart contract has not been audited by a reputable security company, then the risk of losing your funds would be extremely high. Even those smart contracts that are audited, have their own set of issues (nothing's perfect anyways). I'd cash out my stablecoin profits as quickly as I can to help prevent losing it all in an instant. Who knows if "De-Fi" improves over time until it becomes a "force to reckon with"? Just my thoughts

What's wrong with these auditing firms is that they're not even accurate at all. I remember news from Binance that they've been audited and somehow it tends to be an inaccurate audit.
Well, with all of these news and hacks from De-Fi, I don't really give an interest on them and that's why when someone thinks of investing or wanting to take their share there and talks to me how optimistic they are, I'm telling them already the disadvantage of it.

[Yatsan]

If it is being less risky compared to other tokens in this industry having a more volatile value, then it is a good idea if that is your preference as an investor. We do have our own investment strategy in the first place. Most of the people here would go to a more profitable one despite of the bigger risk involved simply because they are not into long term investment. Problem with investing or staking stable coins is that it will require year/s of holding to earn a small percentage of increase. So if you could deal with that more than tackling the risk on more volatile asset which could generate bigger rate of increase and profit for a shorter period of time, then that would be just fine.

[bittick]

honestly staking stablecoin at this point just not worth it because everyone else also wants to stake theirs that it makes the apy relatively lower, basically it's just enough to combat inflation but not enough to actually make real profit, if you think you only want to combat the inflation then maybe this is for you but if you want to generate profit then forget it already.

[blendit]

staking stablecoin is better than putting it on the bank but as they say higher rewards means higher risk

[PancherSh]

In any case, the money should work and not be stored without any action.  Staking is much better than deposit interest.  For example, the Bittix platform offers 50 percent per annum from stablecoin staking and this is a very strong argument.

[Yogee]

....Do you know the safest way to stake stablecoins without breaking the bank?

I'm not sure I understand your question here. I guess you can choose established or known "decentralized" staking platforms if you want lower risk of hacks and exploitations. Go for regulated centralized platforms for an even lower risk - those that are highly capable of refunding you.

Also, do you think it's worth it?

Yes if you have no immediate need of spending your extra fund. Better than not earning anything but don't put your life savings on it.

[JANUS23]

I think its worth staking especially if you are a whale and have long term investment goals, then StableCoin staking is the way to go. Also it is less risky than other tokens and coins