16% interest in USDC, too good to be true?

[doomloop]

better to be safe than sorry since you are living in Europe with has restriction on tether, might be bad for other stablecoin as they could be targeted with this mayhem.

But 16% is good considering theres no lock period or shorter lock terms. I like doing that, but in defi theres a good APY only if you trust the project.

At first, I'm going to say that the issue is only with Tether, while other stable coins are still different but then, like him I also think about the offer. The OP is right, how can they offer a seamlessly high interest if they themselves are not really that huge yet? Guess you are right that it is better to be safe here than sorry.

in defi theres a good APY only if you trust the project.

Yeah, I've also seen lots of projects that offers a high percent of APY and APR but many are still scams here. As for those that are legit, they might offer a more realistic percent. Maybe their only difference is they are not using a stable coin, or other coins are allowed, in which the OP can have a much safer deal here, as he is on a country where stable coins has an issue.

[Z_MBFM]

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

I am not planing on getting stuck in any stable coin right now since I'm living in Europe so the tether drama is enough to keep me away from this not even considering I can perfectly recall the Celsius nightmare but strictly speaking in numbers , how is it even economically possible and profitable for them to offer such interest?

All platforms have a certain amount limitation for high APR so you need to calculate real time APR.  And since your crypto is not in your control when you are staking your crypto, staking crypto on all platforms is high risk.  When it comes to crypto staking you must find a trusted and reputable site and stake there and then or else you may lose your crypto due to some unfortunate reason. So don't rush there without checking the platform after seeing the high interest

[Strongkored]

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

I am not planing on getting stuck in any stable coin right now since I'm living in Europe so the tether drama is enough to keep me away from this not even considering I can perfectly recall the Celsius nightmare but strictly speaking in numbers , how is it even economically possible and profitable for them to offer such interest?

You made the right decision, not only because USDT and maybe will continue to other stablecoins that are banned in the EU, but making a deposit on CEX to get interest is a mistake because the risk is greater than trading, because this CEX service can suddenly go down or be hacked which will also make your funds disappear, because usually to get interest you have to lock it for some time which you can't withdraw before that period is over, so "not your keys, not your coins" is a watchword that must be remembered, understood and carried out by all crypto owners.

[LogitechMouse]

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
---
how is it even economically possible and profitable for them to offer such interest?

This is the current interest rates of USDC on the top exchanges currently, and this isn't fixed, because there might be some slight changes depending on the exchange.

• Crypto.com - Up to 8%
• Binance - Up to 6%
• Nexo - Up to 12%
• Bitget - Up to 4%
• OKX - Up to 5%

TBH, a 16% interest rate on a stable coin might seem realistic, but it's too high for me especially with an exchange that only has a few million users. Aside from the fact that storing your assets on an exchange is risky, there's also a chance that this will not be sustainable and throughout the years, they will make some adjustments, and they will reduce this overtime. If there are many users on their platform, that might be one reason why they can give such huge interest.

The question is, are they profitable currently, or are their revenues enough to cover those interests that they're giving to their customers. We don't know, but for me, I'd stay away with this and if you really want to store USDC, just go with more reputable exchanges.

[GreatArkansas]

I believe that there are different platforms or providers that offer this huge interest in most stablecoins, especially in Decentralized Finance (DeFi) and even in centralized exchanges or platforms.

I checked Wirex and it is a centralized exchange, so I am worried about being a centralized exchange as we common practice is "Not your keys, not your coins"
Do you think the exchange itself is safe even it says "Up to the 16% annual Savings Bonus"?

[TastyChillySauce00]

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
---
how is it even economically possible and profitable for them to offer such interest?

This is the current interest rates of USDC on the top exchanges currently, and this isn't fixed, because there might be some slight changes depending on the exchange.

• Crypto.com - Up to 8%
• Binance - Up to 6%
• Nexo - Up to 12%
• Bitget - Up to 4%
• OKX - Up to 5%

TBH, a 16% interest rate on a stable coin might seem realistic, but it's too high for me especially with an exchange that only has a few million users. Aside from the fact that storing your assets on an exchange is risky, there's also a chance that this will not be sustainable and throughout the years, they will make some adjustments, and they will reduce this overtime. If there are many users on their platform, that might be one reason why they can give such huge interest.

The question is, are they profitable currently, or are their revenues enough to cover those interests that they're giving to their customers. We don't know, but for me, I'd stay away with this and if you really want to store USDC, just go with more reputable exchanges.

they probably giving the APR out of their pocket, but honestly like as you said, risking the entire capital for a new exchange just to get few percent APR doesn't really seem to be worth it.
who knows what happen within this 1 year, after all 1 year is too long for putting money at risk in a platform that's not know for its reliability.

as for wirex, I've found plenty of negative review in reddit, maybe that can be worth putting attention into if OP is afraid of wirex reliability.

[philipma1957]

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

I am not planing on getting stuck in any stable coin right now since I'm living in Europe so the tether drama is enough to keep me away from this not even considering I can perfectly recall the Celsius nightmare but strictly speaking in numbers , how is it even economically possible and profitable for them to offer such interest?

Well the right interest would be 8%.

so if you get 16% and keep it in for ½ year. you can quit and be ahead.

even at 8% it is close to 2x the current rate on paypal fdic on cash . I get 4.1%

So compared to paypal FDIC guaranteed money . in 100 days at 16% you get more than you do safely in a year.

how much can you afford to lose. 5000 ?

btw I park it for payapl and take my fdic 4.1%

[tabas]

I've seen the same offers in the past from several exchanges. It's not too good to be true but bear in mind that it's not going to be 16% APY forever. At some point, there will be changes with the rate and that's why if there are some clauses or disclaimers, you have to look at it. The feeling that you get to earn this much interest is applicable to the majority that has a larger sum of USDC that will be into that interest accounts. If you've got so little, there is still some profit but it won't that much. I think that's why it's important to review that there could be some conditions like more than $500 of deposit, you'll earn less than 16%.

[JeffBrad12]

I've seen the same offers in the past from several exchanges. It's not too good to be true but bear in mind that it's not going to be 16% APY forever. At some point, there will be changes with the rate and that's why if there are some clauses or disclaimers, you have to look at it. The feeling that you get to earn this much interest is applicable to the majority that has a larger sum of USDC that will be into that interest accounts. If you've got so little, there is still some profit but it won't that much. I think that's why it's important to review that there could be some conditions like more than $500 of deposit, you'll earn less than 16%.

it's usually pooled reward so reward or APY will decrease overtime when there's more money staked.

though arguably there are many defi vault that offer even higher APY but the reason they can give that much is because they also use the money staked to venture on pretty high risk way of making money through providing collateral for boosting yield and so on.

16% is definitely not too good to be true but there's always a catch, so it's better to be cautious.

[|MINER|]

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

I am not planing on getting stuck in any stable coin right now since I'm living in Europe so the tether drama is enough to keep me away from this not even considering I can perfectly recall the Celsius nightmare but strictly speaking in numbers , how is it even economically possible and profitable for them to offer such interest?

I have never any experience on wirex platform, so that I have also not ability to say is it legit or nor.
It can be legit because before some time days I also see more than 18% apr on binance but it was on usdt but that time Euro doesn't bann the USDT.

Anyway before making any deposit on any exchanges for the the high apr we must know that they have also rights to change the apr at any time on their needs based on the market like when market is on bull or up then you will see in all of them have high apr but when market will make correcttion you will also see they decreased their apr rate so even they are legit I will say keep your fund on the safe place.

[Ziskinberg]

I have never any experience on wirex platform, so that I have also not ability to say is it legit or nor.
It can be legit because before some time days I also see more than 18% apr on binance but it was on usdt but that time Euro doesn't bann the USDT.

Anyway before making any deposit on any exchanges for the the high apr we must know that they have also rights to change the apr at any time on their needs based on the market like when market is on bull or up then you will see in all of them have high apr but when market will make correcttion you will also see they decreased their apr rate so even they are legit I will say keep your fund on the safe place.

You don’t need to experience it firsthand to determine if it’s legit since you can easily search online. Also, this isn’t an exchange like Binance; it’s a digital payment platform. Their rates are in line with market standards, Binance can even go beyond 18% at times (as you said). That alone proves the rate they’re offering isn’t too good to be true as doubted by OP.

[tabas]

I've seen the same offers in the past from several exchanges. It's not too good to be true but bear in mind that it's not going to be 16% APY forever. At some point, there will be changes with the rate and that's why if there are some clauses or disclaimers, you have to look at it. The feeling that you get to earn this much interest is applicable to the majority that has a larger sum of USDC that will be into that interest accounts. If you've got so little, there is still some profit but it won't that much. I think that's why it's important to review that there could be some conditions like more than $500 of deposit, you'll earn less than 16%.

it's usually pooled reward so reward or APY will decrease overtime when there's more money staked.

though arguably there are many defi vault that offer even higher APY but the reason they can give that much is because they also use the money staked to venture on pretty high risk way of making money through providing collateral for boosting yield and so on.

16% is definitely not too good to be true but there's always a catch, so it's better to be cautious.

That's right, the more USDC and folks get into it then for sure that the rewards will be split with all and the 16% APY will be decreased. As for the DeFi, as much as I want to encourage people get on it, I just can't because not only about the risk about collateral boosting but about them being an apple of the eye of hackers.

[|MINER|]

You don’t need to experience it firsthand to determine if it’s legit since you can easily search online. Also, this isn’t an exchange like Binance; it’s a digital payment platform. Their rates are in line with market standards, Binance can even go beyond 18% at times (as you said). That alone proves the rate they’re offering isn’t too good to be true as doubted by OP.

Ummm.
I just check them they were not new in the crypto space their journey started before from the 2014 as far the detail I get from trustpilot their rating below 3.5 but their volume is over 20billion but I am also seeing that many have issue on this platform with verification and generally it took lots of time for verification, So if anyone want to use them it might be a big headache for them.

And as well before staking anything there must check their TOS because if you deposit and it reduce the APR then I think it will more disappointing and so there is others reputable platform where even if you get lower APR I think that will be good for using.

[armanda90]

No doubt with USDC stable coins and reward 16% interest seems excited but do you trust fully with Wirex exchange? Actually not heard yet and not popular with this exchange and braveness for staking USDC reward until 16% become most bigger reward than other or top exchange market usually the interest under 10%  and have limitation amount for staking. If you trust with Wirex exchange must checking firstly the regulation its stable or not staking reward interest 16% behind any exchange always change the interest reward for staking if get additional user who stake their stable coins.

I think the interest 16% become most bigger reward for staking USDC coins keep stable price and not worry will drop such as USTC but most important will the reward stable for long term or exchange have another regulation when getting many additional user stake USDC coins.

[shinratensei_]

I think the interest 16% become most bigger reward for staking USDC coins keep stable price and not worry will drop such as USTC but most important will the reward stable for long term or exchange have another regulation when getting many additional user stake USDC coins.

16% APR is actually pretty mid when you consider launchpool from the like of binance, or bybit where they give APR of 100% or more sometime though just for 7 days only . but overall if this 16% APR is consistent throughout the year then I'd say it's indeed quite big reward compared to tradfi interests.

I knew back then wirex was crypto debit card provider but I still don't know how reliable they are.

[dansus021]

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

I am not planing on getting stuck in any stable coin right now since I'm living in Europe so the tether drama is enough to keep me away from this not even considering I can perfectly recall the Celsius nightmare but strictly speaking in numbers , how is it even economically possible and profitable for them to offer such interest?

16% interest in USDC, too good to be true? You already mentioned early that this is a promo haha.

Some centralized Exchange or brand new app or DeFi always claim they will give the best result by using their app and can give you thousand of APY in certain token and give you double digit APY on stablecoin but if you take a look their TOS especially in Centralized Exchange this promo usually only for new user and sometimes those double digit apy only for couple of days and week and after that it will return to normal.

[Zwei]

That’s normal I guess. high rates usually come with higher risks. In banks, for example, time deposits offer less than 10% because they’re very safe and insured. While the high returns might seem tempting, make sure to read all the terms, DYOR, and assess if you’re okay with the potential risks before jumping in.

the promise of getting Up to 14% APY in Bitcoin seems more tempting but as I said you should not trust these services.
A quick review of their reviews shows that many complain about hidden fees and slow response from the support team.

people seem to quickly forget what happened in the past, and what could happen to thier coins with those services, just look at luna, celsius, etc... they offered the same tempting % and were considered very safe at the time until they went under. no APY % is worth the risk of lossing all your coins.

The question is, are they profitable currently, or are their revenues enough to cover those interests that they're giving to their customers.

it's just a ponzi to me, they all pay until they don't. and those services also aren't exactly transparent about how they are able to generate those kinds of profit %.

I'd stay away with this and if you really want to store USDC, just go with more reputable exchanges.

sorry, but no one should store their coins on an exchange, reputable or not.
you deposit, you exchange, you get out.

[JeffBrad12]

That's right, the more USDC and folks get into it then for sure that the rewards will be split with all and the 16% APY will be decreased. As for the DeFi, as much as I want to encourage people get on it, I just can't because not only about the risk about collateral boosting but about them being an apple of the eye of hackers.

that's definitely the risk of smart contract based staking, literally we don't know when the hacker will come up with exploit and be able to steal the money, not to mention that it's always time based with these staking contract, the APR sometime just doesn't justify the risk even if it's 16%++ . that's why I personally also don't like staking on these decentralized platform despite defi already increasing their security these days.
but can't deny that it's still a big market with billions being staked and there are many borrowers as well. but well, that's the risk of high APR.

[nimogsm]

I got an email promo from Wirex, claiming up to 16% interest in USDC when you deposit on their x accounts.
Completely ignoring the service itself, is it 16% a year even possible with a stable coin, and how can they even offer this when the treasury yields are not even a third?

I am not planing on getting stuck in any stable coin right now since I'm living in Europe so the tether drama is enough to keep me away from this not even considering I can perfectly recall the Celsius nightmare but strictly speaking in numbers , how is it even economically possible and profitable for them to offer such interest?

The rate may not be stable and may not be for the entire annual period. As correctly noted, for example, on the OKX exchange, a deposit of up to $1,000 has advantages only for 180 days and the rate in this case is 10% as soon as the limit is exhausted, it will return to 5%. Sometimes there are advantageous offers, as in your case, but I am sure that such promotional companies will not last long, you always need to carefully read the terms.

[mrkfdr]

There is one important issue to keep in mind regarding the USDC and EURC
USDC is a fully programmable geo-location, time and feature alt coin enabling full control over individual consumption habits.
 
Translating to real life e.g.,
the issuer of the coin witch is regulated by the government can restrict USDC you have to buy gasoline only within 100Km from your residence and up to 50 liter per week. same for food , leasure , travel for anything you purchase.

This feature is not in implemented yet as far as i know but its there.
Giving you free money just the get used to working with USDC  and later implement restrictions its something every user should be aware of.


source:
https://www.academia.edu/82038322/Stablecoins_Implications_for_Monetary_Policy_Financial_Stability_Market_Infrastructure_and_Payments_and_Banking_Supervision_in_the_Euro_Area