Over the last 3 years, I have become a less risk-taker investor, thus, I relied more on passive income options coming from fiat currencies. Even though passive income brings money for relatively little efforts, it is far less profitable compared to the other investment options.
Although once it was somehow profitable, now, it turns into the acknowledgment of losing your purchasing power. The uncertainty and spoiled monetary system made this investment option plain and useless. I'm highly uncomfortable with this corruption of the incentive by the fiat currencies. So, I started earning passive income for my digital assets thanks to Nexo and, meanwhile, I explored several platforms with passive income opportunity for stablecoins.
In this post, I'll mostly inform you about a number of platforms and their unique features for those who are interested in earning interest on their stablecoins. Even though I enjoy allocating some stablecoins for investment opportunities and invest my stablecoins on specific platforms to earn daily interest, this investment option is away from making huge gains. For me, it is for a healthier portfolio and to be prepared for unexpected occasions. Diversification saves life...
The points that will be highlighted are based on the decreasing dominance of USDT and newly growing stablecoins & trustworthy platforms.
Friendly reminder:
- ~75% of USDT was created
- 22% of all $USD was created in 2020
Why is USDT losing its dominance whilst there is a rush into stablecoins?
The underlying factor is = uncertainty...
People no longer pile up doubtful assets while there are crystal clear ones such as DAI and USDC with favorable reputations. Recently, USDC made a huge increase in terms of its percentage in the capitulation and I believe that flipping will happen between USDT and USDC.
There is an unpopular idea put forward by minorities saying that after BitMEX, USDT may be the next target for a better-regulated crypto ecosystem. It is open to discussion but I do not think it is likely to happen in the near future as USDT monthly reports are highly transparent and the company behind treats more tediously.
Over the last 30 days, USDC, Dai, BUSD, and DAI increased their market capitalization incredibly but Tether is, still, the pioneer and leading the market.
On the other hand, there are lots of stablecoins backed by digital assets. I would like to start with USDN backed by Waves.
Backed Stablecoins & Growing Platforms
The interest rates offered by banks are not even close to the ones offered by De-Fi/ Ce-Fi platforms. In addition to Nexo, I have some BUSD on Binance exchange in flexible saving. The flexible saving option provides me both BUSD and some other Launchpad coins.
BUSD Flexible Savings
For those who want to farm other coins through stablecoins, Binance provides this service by using BUSD. However, as you can see, holding BNB is much more profitable than holding BUSD. Yet, by holding stablecoins, you minimize your risk as much as possible.
APY: 15% (USD + Farming)
USDN Staking | Waves Exchange
I've been trading and holding Waves since 2018. It has always been one of my favorite cryptocurrencies due to its limited supply and projects operating perfectly.
USDN is the stablecoin that is used in the Waves platform. It is backed by Waves and one of the most profitable ones.
As you can see above, the obsolete banking system fails to compete against De-Fi platforms. By using USDN on waves. exchange platform, you can get daily USDN interest and cancel it without paying astronomic fees.
APY: 12-15% (Paid in USDN)
De-Fo
According to Waves,
Decentralized ForEx (DeFo) is the Neutrino protocol interface, providing effective tools for swapping stable assets via smart contracts. A smart contract ensures reliability, transparency, and virtually unlimited liquidity at a predetermined rate.
If you do not choose to hold USD stablecoin, you have several options on waves.exchange that will pay you daily interest, as well. De-Fo is quite attractive and for now, it is unrivaled 😎
APY: 12-15% (Paid in EURN, RUBN, CNYN, JPYN, UAHN and NGNN)
Crypto.com | Earn
Crypto.com offers customers to earn up to 12% interest paid weekly as long as they stake more than 10k CRO. For those who do not stake that much, they are offered %10 interest for 3 months of locking period.
Personally, I like crypto.com and the products served by the platform. Yet, weekly payment and the amount of CRO to be staked exceeds the expectations of the customers. While there are other trustworthy options, I do not choose to invest my stablecoins on the platform.
APY: %12 (For 3-month with 10k CRO Staking)
TL; DR
The current banking system cannot compete with the brand new De-Fi platforms and as investors, we need any form of USD to get into the train while the prices are low enough. So, while holding some stablecoins, there are some platforms that may attract your attention.
Besides, it is obscure that USDT is still the leader of the market but people no longer have to use it as a stablecoin. DAI, USDC, BUSD, and USDN are promising projects working perfectly. I'm planning to put some money on waves.exchange to test De-Fo as well as USDN staking in addition to Waves.
Yet, IF you choose to have your USDT or BUSD faster to trade, then Binance Soft-Staking & Flexible Savings could be better options for your need.