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What do people think about alt coins? V.1 [discussion]

Discussion in 'BBS Hangout' started by LosPollosHermanos, Apr 10, 2021.

  1. Space Ghost

    Space Ghost Contributing Member

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    Blockfi is doing the following:
    4.5% APR for ETH
    5% APR for BTC
    8.6% APR for USDC & GUSD

    Im not sure of the exact process. Basically its acting like a savings account and you get paid in the exchanges stable coin. I believe blockfi pays out monthly. Im not sure what value they pay out, meaning what price exactly (hourly, daily or monthly average).

    I am looking to do this with some of my holdings however I need to check the risk and do my research.
     
  2. DonnyMost

    DonnyMost not wrong
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    I was quoted 6% APR for two years held.

    It seems if you have no plans to convert your ETH any time soon its a no brainer.
     
  3. geeimsobored

    geeimsobored Contributing Member

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    Assuming they don't go under. They're paying high interest because you are taking on the risk around the stability of the exchange. FDIC/SIPC protections don't apply to exchanges.

    I wish Congress and the SEC would formally regulate these institutions and treat them like banks and brokerages. If crypto is going to stick around, crypto exchanges/brokers need the legitimacy of banking regulations and deposit insurance behind it.
     
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  4. I am a Donut

    I am a Donut Contributing Member

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    ETH2 staking is not the same as lending ETH on something like BlockFi.

    Your staking rewards will vary. The only downside to ETH2 staking is your ETH is locked up until the merge with the pos network.

    yes you still benefit from a price increase in eth.
     
  5. Major

    Major Member

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    Depending on your comfort level with Polygon/Matic and De-fi, you may want to look at moving some of your holdings to the Matic network and staking it in different places there. On Aave, you can get 4% interest and also be paid to borrow against it and then deposit that and get paid yet again (and on and on). Since it's the same currency, you have no chance of liquidation and would net around 8% APR. Most of that interest is paid out in Matic, but you can keep selling your Matic for more ETH. The extra benefit is you're not locked into it at all, and since Polygon's transaction fees are like $0.0001, you can move money at will. While you have no plans to sell now, if Ethereum goes to $20k in 3 months (or you have some kind of financial emergency), you might change your mind.

    There's plenty of places in the Polygon ecosystem where you can make ~0.5% daily interest on things like USDC, ETH, etc depending on your comfort levels with the different sites, which means you could make the 6% in 2 weeks. Many of these sites pay in their own tokens and they will eventually probably go to $0, so you just want to sell their tokens every few days back into your preferred currency. But you can probably make more than 6% within a month or two regardless, as long as the contracts are secure. For example, with stable coins, you can make about 20% APR on USDC-DAI liquidity pool fees on Quickswap plus another 20-30% APR in Quick tokens (Quickswap is the Uniswap of Polygon). Liquidity pools with ETH are a little trickier because it's not a stable coin and thus you can suffer losses too, but there are opportunities all over the place if you're willing to keep moving your money around from project to project (and willing to do research to see what projects make sense and are safe).

    (The same is likely true on Ethereum mainnet, but the crazy fees make it inefficient unless you're talking large numbers. During the crash a few days ago, I think transaction fees for smart contracts were in the $500-$1000+ range to make any transactions.)
     
  6. I am a Donut

    I am a Donut Contributing Member

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    These are all good points, but if I wanted to hold ETH for years and wasn't worried about needing to withdrawal anytime soon I would stake ETH2 rather than lend ETH due to the increase in reward potential. After the PoS merge and the change in fee structure the apy is expected to go well above 6%. Estimates are all over the place, but 25% seems to be pretty likely. And 6% is not bad on ETH in the meantime.

    If it was just a few thousand bucks I'd be farming it for MATIC or something else like you mentioned. But if it's 5-6 figures, it's worth doing some research into ETH2 staking as well as other defi lending options.

    You should post in here more.
     
  7. saitou

    saitou J Only Fan

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    bad news for freedom, the worst aspects of fiat and crypto combined into the worst of all possible outcomes :(
     
  8. daywalker02

    daywalker02 Member

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    Thought we already had stable coins.
     
  9. saitou

    saitou J Only Fan

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    Fed's idea of "digital currency" is likely centralized. Public ledger with the Fed as validator and your address tied to your identity. IRS wet dream.
     
  10. dachuda86

    dachuda86 Member

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    And they can create as much as they want
     
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  11. Two Sandwiches

    Two Sandwiches Contributing Member

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    Sounds like China.
     
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  12. ramotadab

    ramotadab Member

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    Stuff like this scares a newbie like me.
     
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  13. I am a Donut

    I am a Donut Contributing Member

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    This thing had so many red flags, one would have to been insane to invest any meaningful amount money in it.

    I used to buy too many low caps, then wisened up and learned to only put meaningful money in projects I understand.

    that pretty much leaves me in defi blue chips, btc, and layer 1’s, but that’s okay, because since I know what their are about, I don’t have to play guessing games about their legitimacy when things get sketchy, like right now. If the market gets rugged out of nowhere, I’m confident my stuff will survive a bear.
     
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  14. Commodore

    Commodore Contributing Member

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  15. Space Ghost

    Space Ghost Contributing Member

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    There is an insane amount of control a CBDC can implement. Taxation can be automatically tallied through different ledgers, immediate confiscation, certain CBDCs can be allocated for things such as SNAP, stimulus allocations can be set to expire if not used, geofencings to prevent capital flight on and on.

    It's not all done and gloom. The sooner people get hooked on digital wallets the sooner Doge will become the galaxy currency.
     
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  16. Invisible Fan

    Invisible Fan Contributing Member

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    There's a game called Eve Online that's been running for almost 2 decades. Very libertarian with full time economists running and studying its economy. Haven't played but like to read about what the players do with a game they've mostly built ground up

    There's been epic exploits about people starting up Banks (aren't regulated by the game) then pulling out all out after a couple years.

    Totally ahead of its time when it comes to crypto.

    Pay in doge tip in onlyfans crypto?

    Can't wait!
     
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  17. Xerobull

    Xerobull You son of a b!tch! I'm in!
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    Great hardcore sci-fi MMO game, my buddy has been playing almost the entire time it's been out. He has a huge corporation (guild). I'm sure he could pull some real world value out of it if he wanted.
     
  18. Major

    Major Member

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    All definitely true, and the earlier Defi100 post speaks to the risks of chasing yield in random projects. If you can make 25% staking ETH through the ethereum system itself, that's great (I haven't looked at Eth2 staking at all). I was more suggesting that his 6% yield is achievable in the crypto space without giving up the flexibility of changing your mind down the line. It's easy to say "I won't sell for 2 years" but the crypto space moves quickly, so you never really know what might change in 6 months, let alone 24. If he can generate the same returns safely and with flexibility, it may be worth looking at (though Eth2 staking is plug and play and forget about it, which has value too!). 25% or whatnot is much harder to achieve without a lot of work in the de-fi spce, so if that's an option through Eth2, that's fantastic.

    Thanks - I go through phases with this site and come and go. When I find myself getting annoyed (mostly with political discussions), I step back. The crypto space is fascinating though, so I follow a few of these threads here and there.
     
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  19. Dr of Dunk

    Dr of Dunk Clutch Crew

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    I used to play that game when it came out just for the economy. Gave up when it became more about griefers and gankers. I couldn't concentrate on the economy/trading in the game because I was going to get ganked hauling material from place to place (I was a miner). LOL.
     
  20. CCity Zero

    CCity Zero Member

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    Lol - I would have been trouble on there.... I played a lot of UO in the first few years it was out and when Eve came out I tried to get into it, It was definitely a great game but on UO I had so much time invested and tons of time perfecting pvp/pking/stealing etc. - I basically tried to repeat that on Eve very very early into release (possibly beta iirc) and got wrecked - I did enjoy it even getting completely destroyed, I just knew I'd never have the time to invest like I did on UO so I wouldn't be able to be a full on pirate, haha

    Eve has always intrigued me though, I enjoy the stories I've read about the large corps/scam/craziness of it all - I had free time for UO since I was in hs/college but eve's release date was around the time I stopped having time.. Early UO (before they ruined the fun) and Eve though are the only type of mmo's I could probably ever play again, the whole risk of actually losing your stuff made it a lot more rewarding I think.
     

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