Keep Calm and Hold on to Stablecoins in Crypto Winter
The collapse of UST-LUNA triggered a chain reaction that signals the looming of a bear market for cryptocurrencies. However, there still are some lucrative opportunities for investors willing to take risks. So how should you reasonably allocate your assets? And what investment strategy should you choose to pull through the bear market and prepare for a bull run? Today Truly will share with you some of the tips to hedge the bear market.
1. How to Profit Easily in a Bear Market?
Diversification is the most important strategy in a bear market.
Forming a portfolio of crypto assets is an investment strategy that works whether it is a bear market or not. However, for the timely adjustment of your portfolio, do NOT buy too many different kinds of cryptocurrencies at once. The price of any cryptocurrency unpredictably fluctuates as does the market itself, so, in order to minimize the overall risk, the best solution is to keep your portfolio down to 4–5 kinds. More importantly, you must do some good research before buying any cryptocurrency. Especially under such a difficult time, you should have your own judgment rather than blindly follow the trend.
Also, you need to stick to stablecoins. But why?
The answer is that stablecoins have many advantages, as mentioned previously in Truly Crypto Lessons. Here we will talk about the two most straightforward advantages.
Firstly, stable coins flatten out the fluctuation of your portfolio. Cryptocurrencies are highly volatile, but stablecoins help protect your portfolio from losing too heavily.
Secondly, fiat-backed stablecoins provide more transparency and security. Among many existing types of stablecoins, those pegged to fiat money have shown their superiority in security after the crash of algorithmic stablecoin UST. For example, TUSD is the most transparent, fully collateralized stablecoins pegged to USD. The real-time audit by Armanino, the biggest accounting firm in the US, ensures that the ratio of USD reserve to its circulation reaches 1:1, a 100% reserve ratio provides peace of mind for its customers.
2.How to Manage & Stake TUSD to Earn Good Returns?
Major crypto exchanges may be the first place in your mind for stablecoin investment. TUSD has been listed on many major exchanges such as OKX, Binance, and Crypto.com. Users can stake TUSD for 15 days and enjoy a 7% APY on OKX.
Besides, customers can deposit $4,000 or more on platforms such as Crypto.com for three months, with an APY up to 8%.
The various DeFi projects are the go-to choice for staking stablecoins. Next up, Truly will share with you ways to make returns from the three areas of DeFi: lending protocols, DEX (LP farming), and yield aggregators. Using TUSD as an example Truly will list some DeFi projects with higher APYs to illustrate the security that stablecoins provide.
1. Decentralized Lending Protocols
Those of you with knowledge about DeFi should be familiar with lending protocols, whose logic is fairly simple. TUSD has been launched on top-class decentralized lending protocols including Aave, Compound, JustLend, and Venus Finance. Now, the pool of five stablecoins in the newly launched Stable Farms on Annex has achieved a remarkable APY of 21.23%.
2. DEX (LP Farming)
Many people are willing to try out LP farming programs on DEXs, where if you provide liquidity to a pool, the protocol will reward you with its native token. TUSD has launched such programs with popular DEXs such as Curve, PancakeSwap, SUN.io, Balancer, and Ellipsis.
Recently, TUSD’s performance in the TRON DeFi ecosystem has received unanimous recognition. SUN.io is TRON’s first platform that integrates stablecoin swap, token mining, and self-management. You may get an APY of up to 28.98% by participating in the 3pool LP pool on SUN.io. It is worth mentioning that the interest rate for TUSD borrowers on JustLend, a decentralized lending protocol, is less than 1%, which looks very user-friendly for those who plan to hold TUSD.
3. Yield Aggregator Protocols (Vaults)
In a yield aggregator protocol, stablecoins, once deposited into a certain pool, will be automatically transferred to DeFi projects with higher returns for yield farming. Such protocols use a series of strategies to optimize returns while adjusting risks accordingly. A closer look at the yield aggregator protocol may give you some joyful surprises.
Now, TUSD has been listed on Yearn Finance, Beefy Finance, and ACryptoS Finance, which are among the top ten yield aggregators by TVL on DefiLlama.
TUSD holds three vaults on ACryptoS. The highest APY that TUSD has achieved in the Annex vault is 16.8%, a number higher than those in the other two vaults with Valas and Venus. Therefore, depositing TUSD into a yield aggregator seems to be a sound option.
That is all that Truly wants to share with you about decent projects for TUSD holders in different DeDi ecosystems. Hope this information may shed some light on stablecoin investment in a bear market. Needless to say, DeFi is still in a frontline position for stablecoin investment. The higher the return is, the higher risk you must be willing to undertake.
3. How to Purchase Stablecoins (TUSD)?
Having understood the TUSD platform and the DeFi ecosystem, it is now time to purchase some TUSD! Truly is now showing you how to do that.
Via bank mints: follow the purchase instructions in the TrustToken app and send a wire transfer to a bank in partnership with TUSD.
For more information, visit: How-do-I-mint-TrueUSD
Please note that minting after a wire transfer has been received can be virtually real-time (e.g. via bank partners’ networks such as SigNet of Signature Bank and SEN of Silvergate Bank), but wire transfers may take 1–5 days to arrive. The following is a faster alternative.
TUSD can be directly purchased through mainstream CEXs (OKX, Binance, etc.) or OTC platforms or exchanged through major DEXs.
Hope the information shared today may help you find the investment strategy most suitable for yourself and make profits even in the current bear market. Don’t forget to leave a comment if you want to know more!