I've been doing stable coin investing. BlockFi pays 8.75% interest on stable coins (which should always be worth $1). Feels safe return in this crazy environment.
I also take out loans from schwab for extra leverage. I made a calculator here for it so as rates change, I can calculate my returns.
I don't think there is a good way to accurately quantify them. I prefer stable coins that are managed and regulated by US companies (like Gemini) and avoid ones with algorithmic stabilization.
I agree they're a little bit safer than unregulated or so called "algorithmic stablecoins". But they're still commercial-grade debt, not bank deposits or money market funds. You may as well invest into junk bonds.
Their ERC20 contracts are backdoor-ed, so the issuer may in some cases will be able to recover stolen funds, but I'm not sure it will help if the issues itself will go bankrupt, and pure-play Crypto companies like Gemini or Circle are high risk of going under, for example in case of crypto crash or regulatory change.
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I've been doing stable coin investing. BlockFi pays 8.75% interest on stable coins (which should always be worth $1). Feels safe return in this crazy environment.
I also take out loans from schwab for extra leverage. I made a calculator here for it so as rates change, I can calculate my returns.
https://docs.google.com/spreadsheets/d/13FVmtdamdNhBhId8xwjU...
Feels safe return in this crazy environment.
Why? It's not a security. It's not in any way guaranteed. Or even regulated.
Various state regulators are starting to look into these companies - and you may want to look into why.
We are talking about crypto here. "safe return" is relative. There are risks and they compensate you 8.75%-20% for those risks.
"picking up pennies in front of a steamroller"?
https://en.wikipedia.org/wiki/Taleb_distribution#Risky_strat...
I love this. Thanks for sharing.
These "risks" you quantify how precisely?
I don't think there is a good way to accurately quantify them. I prefer stable coins that are managed and regulated by US companies (like Gemini) and avoid ones with algorithmic stabilization.
I agree they're a little bit safer than unregulated or so called "algorithmic stablecoins". But they're still commercial-grade debt, not bank deposits or money market funds. You may as well invest into junk bonds.
Their ERC20 contracts are backdoor-ed, so the issuer may in some cases will be able to recover stolen funds, but I'm not sure it will help if the issues itself will go bankrupt, and pure-play Crypto companies like Gemini or Circle are high risk of going under, for example in case of crypto crash or regulatory change.