Some investors prefer not to fully expose themselves to the volatility of cryptocurrencies which sometimes have considerable swings. In fact, in an investment portfolio it is not bad to have a stable part that is not subject to fluctuations. The percentage of this slice varies according to the type of investment you want to make and in turn it can be made to rent to increase it. In this way, a net gain is perceived, directly in fiat currency. In the world of cryptocurrencies there are particular coins anchored to the value of 1$ (or 1 Euro), buying them is like holding dollars. The issuer guarantees their stability with various methods such as a collateral or an algorithm. Among the most famous and reliable we find:
- USDC (Circle & Coinbase)
- USDT (Tether)
- BUSD (Binance)
- DAI (MakerDAO)
- UST (Terra)
For the purpose of earning, it does not change whether we hold one or another. However, the annuity platforms have different percentages depending on the stablecoin that is currently most in demand. You can get up to 15% from stablecoins.
Let's see now what are the possible solutions and what returns they have.
Binance
Risk: Low
Performance: 4.53 - 8.79%
Difficulty: Low
Binance provides many stablecoin annuity options, which vary from one to the other. I will list below the ones that have the highest APY for each product offered and the stablecoin it refers to.
In the "Liquid Swap" section the pool containing USDT/DAI yields an APY of 6.49%. This interest is paid in BNB, which can be claimed and sold at will to avoid being exposed to its volatility. This pool, being made up of stablecoins only, has no impermanent loss.
Another section with a good APY is "Flexible savings". Here you can deposit DAI and receive 4.53% interest. Funds can be withdrawn tax-free and at any time.
Binance's "Staking De-Fi", on the other hand, offers an APY of 8.79% for DAI. In this case, however, the product is not always available and in case of withdrawal you have to wait a period of up to 2 days to get the funds back.
Method:
A- Create an account on Binance, here is the LINK where to start.
B- Conclude the KYC procedure.
C- Connect to this section and choose the product you want.
De-Fi
Risk: High
Return: 12 - 14.97%
Difficulty: Medium-high
For the De-Fi section I have identified two well-established platforms that offer excellent revenues for stablecoins. The first is Venus Protocol, a platform on BSC that allows you to get a 12% APY on USDT. Due to the high variability of rates it may be necessary to periodically move your funds from one coin to another. The mechanism is simple and involves providing liquidity to the platform. The reward is given in XVS tokens which, as usual, can be resold.
Method 1:
A- Move the coin you chose to a non-custodial wallet with a browser (such as TrustWallet).
B- Connect TrustWallet to Venus and go to USDT.
C- Enable the USDT smart contract (You will need BNB to pay a skunk fee). By clicking on "Supply" you will add liquidity in USDT.
The second platform is Pancakeswap, a Dex always on BSC, which I have already reviewed in this article. Here the APY on the UST/BUSD pair is 14.97% and the interest is paid in CAKE. There is no impermanent loss and smart contract fees are very low.
Method 2:
A- Move the coin you chose to a non-custodial wallet with a browser (such as TrustWallet).
B- Connect TrustWallet to Pancakeswap and go to "Liquidity" to add liquidity to both UST and BUSD (If you don't already hold both tokens you need to swap from the "Exchange" function). Here, too, you will be asked for a small amount in BNB for fees.
C- Once the liquidity has been added, you will be given Lp-Tokens, which must be placed in the UST/BUSD Farm.
BlockFi
Risk: Low
Performance: 7.50%
Difficulty: Extremely low
On all supported stablecoins (DAI, BUSD, USDC, GUSD, USDT and PAX) BlockFi offers an APY of 7.5%. This is an excellent compromise to vary the investment on the stablecoins of your portfolio a bit. Also, one withdrawal per month is free which is why I recommend depositing all funds to a single coin. The ease of use of this service makes it one of the most used and one of my favorites. Once the transfer has been made, nothing else needs to be done.
Method:
A- Create an account on BlockFi and complete the KYC procedure. Start from this LINK to receive a bonus of 10$ in BTC.
B- Click on "Fund" and then on "Crypto Transfer".
C- Choose a stablecoin and copy the address.
D- Make the transfer to the address obtained from the wallet or exchange.
Not yet subscribed to Publish0x? Sign up with THIS LINK and start earning cryptocurrency by reading.
If you liked this article please support me by following me here and on Twitter, leave me a like or use one of my referral links below. ??
-Thank you-
L.
?? Binance, 10% discount fees
?? Coinbase, 10$bonus in BTC
?? Join Tradingvew
??Use BlockFi and get up to 4% on Bitcoin. Read here how to do
?? FTX, 5% discount fees