Many like the comfort & passive income provided by stablecoin farming.
But, as we've just seen with $BEAN, there is always smart contract/protocol risk.
Here is my risk adjusted stablecoin yield strategy π§΅
But, as we've just seen with $BEAN, there is always smart contract/protocol risk.
Here is my risk adjusted stablecoin yield strategy π§΅
I'll talk about my own strategy later and also offer up some additional yield opportunities.
I think you should be looking to spread risk amongst four or five protocols.
One of these protocols can be a slightly riskier/degen play, but this should be no more than 10% of your portfolio.
One of these protocols can be a slightly riskier/degen play, but this should be no more than 10% of your portfolio.
You never want to be at risk of losing your whole stablecoin portfolio as a result of one protocol failing.
But, arguably, diversifying amongst stablecoins isn't reducing your risk.
Despite it being centralised, I still perceive USDC to be the safest and lowest risk stablecoin in the space currently.
Blackrock and Fidelity must be confident regulatory pressure isnβt going to hamper stablecoins & USDC.
prnewswire.com
Blackrock and Fidelity must be confident regulatory pressure isnβt going to hamper stablecoins & USDC.
prnewswire.com
This is not to fud any other stablecoin.
I want UST to succeed and have some exposure to it.
We need a decentralised stablecoin, but in my opinion it carries a lot more risk right now than USDC.
I want UST to succeed and have some exposure to it.
We need a decentralised stablecoin, but in my opinion it carries a lot more risk right now than USDC.
All stablecoins have slightly different risk profiles.
But, I believe you are introducing more risk by diversifying between stablecoins than just holding USDC.
If you don't understand stablecoin risk profiles then you need to do more research.
But, I believe you are introducing more risk by diversifying between stablecoins than just holding USDC.
If you don't understand stablecoin risk profiles then you need to do more research.
I have switched to native stablecoins across chains, as bridged assets are an additional risk that I would prefer not to take.
Pickle wrote a good piece on why you should mostly set your stable coin strategy and leave it for long periods.
The TLDR:
You will lose more in value than you think by regularly withdrawing, bridging, depositing, claiming and selling.
The TLDR:
You will lose more in value than you think by regularly withdrawing, bridging, depositing, claiming and selling.
*Disclaimer*
There is smart contract risk in every protocol I mention, as well as stablecoin risk too. Please understand this before you deposit your money.
There is smart contract risk in every protocol I mention, as well as stablecoin risk too. Please understand this before you deposit your money.
Here's what I'm doing currently:
I have 75% of my stablecoins in USDC.
And 25% in UST.
I have 75% of my stablecoins in USDC.
And 25% in UST.
My stables are parked in the following platforms:
1. $USDC on @vector_fi - 12.7% APR (Avalanche )
Deposit $USDC to earn $PTP and $VTX rewards.
Deposit $USDC to earn $PTP and $VTX rewards.
2. $USDC on @echidna_finance - 10.59% APR (Avalanche )
Deposit $USDC to earn $PTP and $ECD rewards.
Deposit $USDC to earn $PTP and $ECD rewards.
3. $UST on Anchor - 19.5% APY (Terra)
Deposit $UST to earn $UST.
Deposit $UST to earn $UST.
4. $USDC on @StargateFinance - 10% APY (Avalanche)
Deposit $USDC to earn $STG rewards.
Deposit $USDC to earn $STG rewards.
A few other high yield opportunities I am also considering:
UST-USDC on @RaydiumProtocol - 29% APY (Solana)
USDC-MAI on @SpookySwap - 22% APY (Fantom)
UST-USDC on @pangolindex - 15% APY (Avalanche)
USN π
UST-USDC on @RaydiumProtocol - 29% APY (Solana)
USDC-MAI on @SpookySwap - 22% APY (Fantom)
UST-USDC on @pangolindex - 15% APY (Avalanche)
USN π
There are plenty of good stablecoin strategies out there. Mine isn't necessarily the highest yielding, but it is what I am comfortable with from a risk point of view.
You have to do what's right for you and it's important to periodically reevaluate your risk.
You have to do what's right for you and it's important to periodically reevaluate your risk.
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