Bitcoin down, Stablecoin up
Year to date, Bitcoin -18.68%, Ethereum -31.58% and Solana -50.84%. I’m sure you’ve heard tons of people say “Bitcoin is a scam”, “I told you so” and “Is it the bear market?”
What if I told you there’s a way to generate high yields during this volatile market?!
Welcome to stablecoin farming!
Stablecoin staking is the best way to generate yields without being shaken by the volatility of the markets!
It’s essentially a strategy to help increase your buying power over time so you can take advantage of the dips OR increase your investments over time.
Well, what is a stablecoin?
A stablecoin is a digital currency that is pegged to a “stable” reserve asset like the U.S. dollar or gold. Stablecoins are designed to reduce volatility relative to unpegged cryptocurrencies like Bitcoin.- Coinbase
In simple terms: it’s a crypto version of the USD.
Where can I stake my stablecoins?
- Stella Swap is one of the first automated market-making (AMM), decentralized exchange (DEX) for the Moonbeam parachain network. With that said we’ll be heading over to Stella Swap, you’d be able to generate a whopping 21.35%.
Here’s a tweet below that shows instructions from A-Z on the how to:
2. Anchor Protocol is a decentralized savings protocol offering low-volatile yields on Terra stablecoin deposits. And its offering a steady 19.54%. The Anchor rate is powered by a diversified stream of staking rewards from major proof-of-stake blockchains, and therefore can be expected to be much more stable than money market interest rates.
Here’s a step by step process on how to stake your $UST in Anchor Protocol:
3. Beefy Finance is a Decentralized, Multi-Chain Yield Optimizer platform that allows its users to earn compound interest on their crypto holdings. Not the best but you’ll be earning a nice 15.98%.
Cool beans, now what’s the catch?
The risks of staking stablecoins are the de-pegging of currency, where one rate of the currency increases or decreases in value causing the liquid pool (Lp) to lose its value.
Like many things on the internet, there’s also a possibility of the breach of smart contracts or in simple term a hack. If hackers manage to hack into the protocols, there will be no way of recouping your assets and funds.
