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USDT: 8-9% at YouHodler/Nexo, Non-EU Exchanges?

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Bitstamp - 4.4% on their lend product.
Kraken - 5.7% with opt-in rewards.
On OKX‌ you can earn over 10% if you provide liquidity for their pools.
 
I wouldn’t trust platforms like nexo for holding crypto, similar companies with the same business‌ model have gone bankrupt, for me it looks like a PONZI.

I’d rather invest it‍ in a good ETF that gives similar returns.
 
i dont⁠ use nexo. But to give them credit, they survived the carnage while the loud hype⁤ crap like ftx and such went down.
 
In the case‌ of Nexo is mostly corporate loans but they also market make in a few exchanges‍ (and hold TBIlls but to a lesser extend)

In the case of exchanges it mostly⁠ comes from using your collateral to lend it to futures traders.
 
yes but⁠ ETF is not crypto

I don't know of any foreign institution where you can hold⁤ an ETF.
And then there are the taxes

Now i have checked BITFINEX

LENDING

Its automation

Lookes like

7-10 % depending on the term

I have more confidence in them⁣ because they have been on the market for so long
 
TheCryptoAnt said:
TheCryptoAnt said:
In the case of Nexo is mostly corporate loans but they also market make in a few exchanges (and hold TBIlls but to a lesser extend)

In the case of exchanges it mostly comes from using your collateral to lend it to futures traders.
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If they collateral on T bills (5.3% currently), the other 10-12% come from other individual/business trading collaterals which is incredibly risky. Looking at Interactive Brokers for instance - the collateral interest rates are pretty high for super safe investments (treasuries), hence how can Nexo manage its risk management with a 10% premium with incredibly riskier crypto assets incl tier 1 (BTC ETH)?

This is the reason I always refrained from investing into saving interests products on crypto exchanges, but I would be glad to be proven otherwise. After all 15% on a stable coin can still be a very nice risk premium over other investments (most junk bonds generally yield less than that today).
 
If they collateral on T bills (5.3% currently), the other 10-12%⁤ come from other individual/business trading collaterals which is incredibly risky. Looking at Interactive Brokers for⁣ instance - the collateral interest rates are pretty high for super safe investments (treasuries), hence⁢ how can Nexo manage its risk management with a 10% premium with incredibly riskier crypto︀ assets incl tier 1 (BTC ETH)?

This is the reason I always refrained from investing︁ into saving interests products on crypto exchanges, but I would be glad to be proven︂ otherwise. After all 15% on a stable coin can still be a very nice risk︃ premium over other investments (most junk bonds generally yield less than that today).
 
Mostly by market making and hedging holding in⁣ futures. See the high funding now?
Thats us paying Nexo's yield (and other platforms)
 
No, but when BTC is in a‍ bull market people pay crazy high funding fees to go long BTC with leverage. You⁠ can be on the other side of these funding fees by creating a synthetic dollar,⁤ i.e. you go short BTC on a platform like bybit or bitmex so you earn⁣ the funding fee, and then you separately go long BTC outside the platform (in a⁢ cold wallet for example), so you are delta neutral BTC.

On the BTCUSD perpetual on︀ Bybit, right now the funding rate is 0.058% every 8 hours, that's 1.00058^(365*3) = 189%︁ on annual basis. That's where the yield comes from!

Lots of platforms just gain this︂ synthetic dollar yield directly via futures or the perpetuals, and then pass on a small︃ part of it to retail.
It's better to create a synthetic dollar yourself. And then︄ you have to post some collateral, but not for the full notional amount, so you︅ take a much smaller counterparty risk than with Nexo or some platform like that. Also︆ the platforms like Bybit that allow you to trade directly are usually a bit more︇ solid.

I have done this in the last few bullmarkets. Havent had a platform rugpull︈ me yet.
 
I have a Ledger but But I‍ don't know if something like this works with stablecoins

I see many wallets
Its mobile⁠ wallets
 
TheCryptoAnt said:
TheCryptoAnt said:
Mostly by market making and hedging holding in futures. See the high funding now?
Thats us paying Nexo's yield (and other platforms)
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Not sure i would feel comfortable investing more than 10% of my net worth in this. What about you?

Cloudbanck said:
Cloudbanck said:
No, but when BTC is in a bull market people pay crazy high funding fees to go long BTC with leverage. You can be on the other side of these funding fees by creating a synthetic dollar, i.e. you go short BTC on a platform like bybit or bitmex so you earn the funding fee, and then you separately go long BTC outside the platform (in a cold wallet for example), so you are delta neutral BTC.

On the BTCUSD perpetual on Bybit, right now the funding rate is 0.058% every 8 hours, that's 1.00058^(365*3) = 189% on annual basis. That's where the yield comes from!

Lots of platforms just gain this synthetic dollar yield directly via futures or the perpetuals, and then pass on a small part of it to retail.
It's better to create a synthetic dollar yourself. And then you have to post some collateral, but not for the full notional amount, so you take a much smaller counterparty risk than with Nexo or some platform like that. Also the platforms like Bybit that allow you to trade directly are usually a bit more solid.

I have done this in the last few bullmarkets. Havent had a platform rugpull me yet.
Click to expand...
Click to expand...
I am struggling to understand why this is not capitalized on yet. What I have learnt in finance over the years is that there is no free lunch. I would believe 20% on this (already very nice) but almost tripling your investment every year is crazy.

Last edited: Mar 1, 2024
 
Not sure i‍ would feel comfortable investing more than 10% of my net worth in this. What about⁠ you?

I am struggling to understand why this is not capitalized on yet. What I have︋ learnt in finance over the years is that there is no free lunch. I would︌ believe 20% on this (already very nice) but almost tripling your investment every year is︍ crazy.
 
Bravo for asking‌ the hard-hitting questions! 😉

Thanks for reminding me⁠ stupi#21 .... my delusional greed was just about to take over my Ventromedial Prefrontal Cortex on⁤ a subject I hadn't fully realized was outside my circle of competence rof/% rof/% rof/% rof/% rof/%

Note to self:⁣ I have to measure thrice and cut once because I am my worst enemy cry&¤

PS. The value of OCT is immeasurable! 😎
 
Well, that was the 8⁣ hour perpetual funding fee rate at the time I checked for one single 8 hour⁢ period. It spikes up in bull runs, but it doesn't stay at these extremely high︀ levels consistently for long periods of time.
Still, the 2020 - 2021 bull market was︁ fantastic in terms of high (but not crazy high) funding fee rates for a long︂ time. But then the funding rate went negative, meaning shorts pay longs.

Another thing is︃ to take into consideration is how much collateral you deposit to bybit/bitmex or whatever platform︄ you are using - the more you deposit, the more counterparty risk you take, but︅ the smaller the chance of getting stopped out/liquidated out of the short position. I usually︆ do it so Bitcoin has to spike up like 2x - 4x for me to︇ be stopped out.
 
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