Earn up to 30% APR Staking Stablecoins



Love cryptocurrency but don’t have the nerve to lose 20% in a couple hours? There is still a solution for you, Stablecoins. Cryptocurrency stablecoins are what their name implies stable. And while there is no upside potential on the asset itself, you can still make good ROI utilizing the asset within the cryptocurrency industry. At certain times trading or staking stablecoins can return upwards of 30% APR! Can hardly compete with that for the small downside risk
Staking reward article picture of a weighing scale balancing reward on one side and risk on the other.
At this time, the best protocols to use to earn interest with the least risk is by using Stable Coins on Decentralized Finance (DeFi) applications. 

What are Stablecoins?

Stablecoins are pegged tokens that are supposed to trade 1:1 with a stable fiat currency, (e.g., USD). Putting dollars on the blockchain is the goal, so the price should stay equal to, (e.g., USD) so it should be $1 = 1 Stablecoin.

Staking reward article picture of stable coin prices list  highlighting DAIIt still fluctuates due to the demand of the market but most, like for example, DAI has been at $1.01 for quite some time now.


If you simply want to earn passive decentralized income, all you have to do lock up your Stablecoins so it can start to earn interest from Staking.
Staking Stablecoin article picture of a screenshot snippet of account showing earned from Staking DAI and USDC

What is Staking?

Staking, also referred to as (PoS)Proof of Stake consensus mechanism is to lock up your coins so it can be used for running the nodes to keep a cryptocurrency system in the blockchain, generate income accrued from various sources which will then pay you for the coins you locked up as collateral for keeping the nodes running. 

Most of the system is already trustless, like, MakerDAO’s DAI. Most, not all, because you still need to trust the contract as well as the economics and market makers to keep the system liquid.

If you want to earn more from various sources you can utilize the full potential of a platform whether be it a Decentralized Crypto Lending or Decentralized Exchange Finance (DeFi) platforms

Decentralized Finance (DeFi) platforms

A Crypto Lending platform is where you can borrow cryptocurrencies against collateral or lend them out and earn interest. Decentralized because all transactions are done via smart contracts, directly between the borrowers and the lenders.

Most platforms accept Bitcoin, Ethereum and Stablecoins. Most profitable Stablecoins to use are DAI and USDC. And to use them in the top Decentralized Finance (DeFi) platforms. Namely, 

 

Compound.Finance

Dy/Dx

Stable Coins Accepted

DAI, USDC

DAI, USDC

Major Crypto Accepted

ETH, BAT, REP, ZRX, 

DAI, USDC, ETH

Interest Rates

(As of August 2019)

0.07 – 7.47%

0.2%-25% range historic

10% APR

Compounding

Daily

Daily

Lock In

No

No

Decentralized

Yes

Yes

Minimum Amt.

No

No

Security

Own Wallet

Own Wallet

So there you have it. A low risk, decent reward way to get involved with cryptocurrency and help support the industry indirectly and profit.


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