DeFi 30-for-30 #11:
How to get better interest rates than Malaysian banks' fixed deposits using stablecoins.
If you don't know this trick, this thread will open your eyes.
Thread ๐๐งต
How to get better interest rates than Malaysian banks' fixed deposits using stablecoins.
If you don't know this trick, this thread will open your eyes.
Thread ๐๐งต
1/ FD rates in Malaysia are very low.
Stablecoins are pegged to USD, so they don't experience the same volatility that other cryptos do. If you are risk-averse, this strategy is worth trying to get more bang for your buck.
It's not without risks though - read to the end.
Stablecoins are pegged to USD, so they don't experience the same volatility that other cryptos do. If you are risk-averse, this strategy is worth trying to get more bang for your buck.
It's not without risks though - read to the end.
2/ Step 1: Convert your MYR to crypto. Regulated or unregulated - that's up to you.
Luno is by far the biggest and most liquid. Referral link: https://www./luno.com/invite/V6QBH
When you have spare cash, buy XRP. Then withdraw that XRP to any exchanges out there.
Luno is by far the biggest and most liquid. Referral link: https://www./luno.com/invite/V6QBH
When you have spare cash, buy XRP. Then withdraw that XRP to any exchanges out there.
3/ If you already know how to access unregulated exchanges, then you can skip step 2 and just get some stablecoins directly on the exchange.
If you don't know how to yet - then join Fantom Tigers Discord then we'll teach you how ๐
If you don't know how to yet - then join Fantom Tigers Discord then we'll teach you how ๐
4/ Convert your coin to stables. This can be USDT, BUSD, USDC, UST, and so on.
After that, depending on your preference, withdraw your stablecoins to your Metamask.
Then head over to any of the following protocols to get that juicy APY.
After that, depending on your preference, withdraw your stablecoins to your Metamask.
Then head over to any of the following protocols to get that juicy APY.
5/ Let's take a look at @VenusProtocol on BSC.
Yields range from 7 - 11% depending on the type of stables.
Bear in mind this yield is variable - it may fluctuate depending on the borrowing demand.
Yields range from 7 - 11% depending on the type of stables.
Bear in mind this yield is variable - it may fluctuate depending on the borrowing demand.
6/ My favourite would be @anchor_protocol on Terra using UST.
APY is hovering close to 20% and the whole protocol is designed to provide this as a fixed rate.
Have you heard of FD of 20% interest rate? Me neither.
You can double your deposits after 3.6 years theoretically.
APY is hovering close to 20% and the whole protocol is designed to provide this as a fixed rate.
Have you heard of FD of 20% interest rate? Me neither.
You can double your deposits after 3.6 years theoretically.
7/ These are not "fixed" per se; you can withdraw your stake anytime you want.
This allows for flexibility and liquidity to deploy your capital when opportunities arise.
Much better than keeping your funds locked up in TradFi banks.
This allows for flexibility and liquidity to deploy your capital when opportunities arise.
Much better than keeping your funds locked up in TradFi banks.
8/ Sounds too good to be true? Of course there are risks.
> Smart contract risk - hacks / thefts
> Depegging risk - the stablecoin losing its peg to USD and lose value
You can mitigate this by buying insurance cover, which brings down your actual yield on the stables.
> Smart contract risk - hacks / thefts
> Depegging risk - the stablecoin losing its peg to USD and lose value
You can mitigate this by buying insurance cover, which brings down your actual yield on the stables.
9/ Also bear in mind the stablecoins are pegged to USD. If Ringgit strengthens against USD, then your yields will actually be lower due to foreign exchange losses.
If MYR weakens then your staked USD will actually be more valuable.
If MYR weakens then your staked USD will actually be more valuable.
10/ TL;DR:
If you have higher risk appetite, save your money in stablecoins and earn higher yields.
If you have higher risk appetite, save your money in stablecoins and earn higher yields.
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