staking stablecoins good?

[Skjadoon]

Is staking stablecoins really as easy and safe as it sounds? I’ve heard a lot about how staking stablecoins can generate good income,  is it true?

Is anyone here actually staking stablecoins right now? any hidden downsides ?

[Charles-Tim]

The only downsides is that the stable coin can fall below its pegged price of the coin it is pegged with. This has happened in the past. Some were able to recover while some were not able to recover this today. Most of the stable coins that were not able to recover are algorithmic stable coins, not it can happen to any stable coins.

[henry_of_skalitz]

Depends on what your targets are and where you intend to do it.

[passwordnow]

Is staking stablecoins really as easy and safe as it sounds? I’ve heard a lot about how staking stablecoins can generate good income,  is it true?

Is anyone here actually staking stablecoins right now? any hidden downsides ?

I did that but on exchanges, not that a lot when you also stake not a lot. But I did that because I understand the risk that they're a centralized platform, they could hold my stable coins staked on them. So, if they have been hacked and they say that all funds are affected then it means that yours staked on them is affected and there is a chance that they're no longer going to refund you. I'm telling you that because if they say that they are guaranteed safe, don't be too believing into such promises because they can always play as a victim.

[adultcrypto]

Is staking stablecoins really as easy and safe as it sounds? I’ve heard a lot about how staking stablecoins can generate good income,  is it true?

Is anyone here actually staking stablecoins right now? any hidden downsides ?

Staking stablecoins require you locking your money in a centralized exchange which is not good. Remember the saying that "not your keys, not your coins" so if you lock your coin in a CEX and the exchange is hacked, you will lose all your money. Even though they promise high APR, if you compare that to the risk of losing everything, it is not worth it for me. I rather keep my money in a trusted cryptocurrency and in my private wallet.

[uneng]

It's too risky, because the platform where you are staking can go rogue anytime, disappearing on the internet with your money. Even if it's a registered company, hardly ever you are going to be fully refunded in case something goes wrong. And that isn't an uncommon thing to happen in this industry...

Also, staking stablecoins must be similar to investing dollar currency within your local bank. And on this aspect, traditional banks are more advisable, because the law of the country can assure certain guarantees. Here in my country, for an example, investments by R$250,000 (local currency) are protected by credit guarantee fund clause. What means if the bank goes bankrupt, you still receive your funds back by that amount.

[Frankolala]

Will you stake your stable coin for low profit with high risk of losing your coins. I wouldn't do that because it's not safe. Exchanges cannot be trusted, therefore, you should treat them like market places where you go to buy and sell instead of turning it to your bank. It's better to be in self custody of your coins.

[avikz]

Is staking stablecoins really as easy and safe as it sounds? I’ve heard a lot about how staking stablecoins can generate good income,  is it true?

Is anyone here actually staking stablecoins right now? any hidden downsides ?

Well, why don't you do it via bank deposit. I mean stablecoin staking will generate similar amount of income from staking. If you compare to some countries, bank deposit will fetch much higher return than staking. Yes there are some exceptions for sure but the credibility of those coins is questionable.

There are many risks like, de-pegging of price, staking platform may disappear, lock up period etc. I personally wouldn't do staking with a lock in period.

[Mrbluntzy]

I’ve heard a lot about how staking stablecoins can generate good income,  is it true?

Is anyone here actually staking stablecoins right now? any hidden downsides ?

It's not true, the profits are not too good as they say, I was staking usdt on an exchange but the profit was so poor. At first I tried the flexible options for 7 days and it didn't even return up to $0.5 within that 7 days, so I decided to try a fix option for 30 days and yet the reward was still very poor. Instead of staking stable coins again, I'd rather save dollar in my bank, no risk.

[FinneysTrueVision]

There are countless yield bearing stablecoins and curated vaults where you can get good APY, but there is always going to be some counterparty or smart contract risk. Without leverage you are unlikely to beat Bitcoin’s price appreciation with stablecoins. The safest investment in crypto will always be buying and holding BTC.

If you really want to have some of your portfolio in stablecoins, then lending on Aave is probably the safest way to go. One caveat is that you need a really large investment to see significant returns as yield is typically on the lower end of the 5–15% range.

[andyfibe]

I’ve heard a lot about how staking stablecoins can generate good income,  is it true?

Is anyone here actually staking stablecoins right now? any hidden downsides ?

It's not true, the profits are not too good as they say, I was staking usdt on an exchange but the profit was so poor. At first I tried the flexible options for 7 days and it didn't even return up to $0.5 within that 7 days, so I decided to try a fix option for 30 days and yet the reward was still very poor. Instead of staking stable coins again, I'd rather save dollar in my bank, no risk.  Personally, I now use USDT in a different way — sometimes I play at licensed crypto casinos like website, where you can make deposits in USDT. Of course, this is not an ‘investment,’ but at least it gives you a chance to get some excitement and a win higher than $0.5 in 7 days

The main thing is not to overdo it and not to confuse it with passive income.

I’ve staked USDC on different platforms — had pretty much the same results. A lot of hassle for almost no return. Considering the risks involved, it’s honestly easier to just leave the money in a bank or even on a cashback card.

[Hispo]

Is staking stablecoins really as easy and safe as it sounds? I’ve heard a lot about how staking stablecoins can generate good income,  is it true?

Is anyone here actually staking stablecoins right now? any hidden downsides ?

If the yield seems to be very high and too good to be true then be careful, there are ponzi schemes which try to fool their victims by using relatively small yields, compared to other ponzi scams out there, in order to get some aura of legitimacy.
In the case we are talking about a very reputable exchange, the downside would be those coins not actually being under your control, so they can be confiscated at any time the exchange decides there is some strange activity going on with your account, not even mention exchanges are also one of the targets for excellence of hackers, as others have already mentioned in this thread, so by staking your Stablecoins on a exchange, you are implicitly trusting their security system and security team without having actual power of decision on that matter.
In the end, it is your choice.

[X-ray]

Like other mentioned if you're concerned about security, yield bearing stablecoin is the way to go.

The only thing you should be concerned in my opinion when you're staking stablecoin is the smart contract itself. Just make sure the smart contract is properly audited by proper and reputable audit company so it won't get stolen by hackers.

I don't even think depegging is a concern at this point since GENIUS act passed.

[justdimin]

why don't you do it via bank deposit. I mean stablecoin staking will generate similar amount of income from staking. If you compare to some countries, bank deposit will fetch much higher return than staking. Yes there are some exceptions for sure but the credibility of those coins is questionable.

There are many risks like, de-pegging of price, staking platform may disappear, lock up period etc. I personally wouldn't do staking with a lock in period.

Yeah, if you put dollars (or your fiat of preference) into a bank as a savings account, it will definitely get money and then give money, and that should not be all that complicated. The thing is, stablecoins and staking them, do not bring anything better than banks and their savings accounts, so the idea doesn't seem like a good one for me. Specially if you consider putting some trusted stock as well, not sure what they call them, vanguard or something?

Whatever it is, like group of stocks, and you make some good return, while keeping it fairly safe, and depending on how stock market does, you may earn a ton. That is even better. Stablecoin staking seems like very low return of investment ,compared to the risk you are taking when you do that.

[Skjadoon]

Is staking stablecoins really as easy and safe as it sounds? I’ve heard a lot about how staking stablecoins can generate good income,  is it true?

Is anyone here actually staking stablecoins right now? any hidden downsides ?

Well, why don't you do it via bank deposit. I mean stablecoin staking will generate similar amount of income from staking. If you compare to some countries, bank deposit will fetch much higher return than staking. Yes there are some exceptions for sure but the credibility of those coins is questionable.

There are many risks like, de-pegging of price, staking platform may disappear, lock up period etc. I personally wouldn't do staking with a lock in period.

which bank similar amount of income from staking same as? mind name it

[asriloni]

Yes it is. Staking stable token is really easy as it sounds. I've been doing stable staking for 3 years, and everything is always going very well.

It's true staking stable token can generate you doble income (APY+airdrop). The only risk is that your money will be staked, and yeah not your keys, not your money.

As for example. i earned like 40% ROI (airdrop) in three months combined with 9% APY from Sophon (depend on what project you staked). It pretty much same as shooting two birds with one stone, isn't it?  

[shinratensei_]

It's generally safe but don't ignore the horror story of people losing their money in a vault or pool because exploits.
You need to follow best practice and stake in the best project to make sure you arent losing your money in the long run.

One example is cetus hack where LP is drained and that includes stablecoin.

[Akbarkoe]

It's generally safe but don't ignore the horror story of people losing their money in a vault or pool because exploits.
You need to follow best practice and stake in the best project to make sure you arent losing your money in the long run.

One example is cetus hack where LP is drained and that includes stablecoin.

In addition to finding a safe place and can provide a consistent advantage and be able to fight inflation, it also needs to be considered the stable coin developer because if they are not really who is behind the project, whatever it is, for example in some stable coins that lose their balance makes the coins lose their value from the price of the value.


The strongest today is USDT and USDC where they already have many ecosystems and partners that are very broad in many chains, but sometimes see also in a place where we have to stake to have a variation of interest that is offered to us, we are still on LP do not over trust of a provider project, what happens with Cetus is the worst experience.

I think it's better to save bitcoin with an annual ROI of more than 30% enough.

[DeathAngel]

Staking stablecoins can be a good idea if you want low risk passive income. Since stablecoins don’t swing in price like other crypto it’s safer. But the rewards are usually lower & there’s still some risk like if the platform fails or the stablecoin loses its peg. Do your research, don’t put in more than you can afford to lose & stick with trusted platforms. It’s not free money but it can work if you’re careful.