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HOW TO FIND THE BEST APY RATES FOR STABLECOINS RIGHT NOW | 10-300%
Dec 1, 2022
The yields you can earn on stablecoins right now are insane. It has become very tempting for many to now choose to keep a high portion of their cash locked up in stablecoins to avail of the high interest rates which you just can't get with your bank. Despite all of the risks. In this video I take a look at where you can find the highest APY rates on stablecoins right now. This video is purely for educational purposes only. Thank you for watching, if you would like to see more of this type of content then please subscribe.
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0:00
Some of the rates you can earn on stablecoins at the moment are completely insane
0:04
And in this video I will be taking a look at where you can get the best possible rates
0:08
on your stablecoin. Now this ability to earn high interest rates on stablecoins may not last forever
0:13
It is definitely top of the list of what governments really want to regulate
0:17
This could possibly mean in future we will see stablecoins like USDT getting delisted from some
0:23
exchanges. Our governments just do not want to lose control of the money supply and they are also
0:28
being pressured by banks who are losing tons and tons of customer deposits which are then flowing
0:33
into stable coins. Even though it is far riskier holding your cash in stable coins than as compared
0:39
to a bank it is hard to blame people for wanting to get in on these high interest rates. Like for
0:44
example the bank that I personally use emailed me last week saying that they will be applying
0:49
negative interest rates to deposit accounts above a certain level. Now that level is at 1 million
0:54
euro and definitely does not affect me whatsoever but I assume in years to come there is a strong
0:59
possibility that we will see negative interest rates across all deposit accounts and that combined
1:04
with the current levels of inflation just means that your buying power is completely being eroded
1:08
by leaving your money in a bank deposit account and then you compare this to what you can possibly
1:13
get by lending out your stable coins as a bare minimum you can get about 10% and 10% as a minimum
1:20
is pretty insane when you compare that to what you would get over the last few
1:24
decades just by investing in the S 500 you would have been lucky to get about 8 on average So now let take a look and see where you can get the best possible rates on your stablecoin there is one really useful website called defirate which we can use to compare a lot of different platforms but this website does
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not quote every single exchange there is one they have omitted that offer really really high
1:46
interest rates which i will take you through also later on so here is the defirates web page
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so i have just filtered here by lending rates you can switch between lending and borrowing
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and I'm going to have a look at some of the most popular stable coins so we'll have a look here for
2:00
example at USDC first. So the current interest rates available to you when you hold USDC are
2:07
2.86% on compound, 3.26% on Aave, 6.35% on Fulcrum, 7.5% on BlockFi and Celsius are the best at the
2:18
moment giving you 10.02%. If we then have a look at Tether here now Fulcrum are offering the best
2:24
rates here at the moment per defoyrate.com at 16.04%. These rates are constantly changing so
2:31
this is a good place to be able to come back and just get a quick snapshot on where it's offering
2:35
the best rate at the moment. So you can also switch here by the 30 day average just to see
2:40
who has been offering the best rate over the last month. But it is not just always about going with
2:45
whoever has the highest rate. It is also very important to consider the reputation of whoever
2:51
you are trusting your money with. Like a couple of these have been caught out by different hacks in recent times
2:57
So definitely do your own research so you are comfortable with whoever you are trusting your money with One exchange that is not shown on defirate is KuCoin and they have a peer lending
3:08
platform that offer pretty incredible rates. Let's take a look at this now. As it is a peer-to-peer
3:15
lending platform and you're not borrowing or lending with KuCoin itself you will see lots of
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different specific amounts that you can possibly lend out at different rates and different terms
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So I'm just looking at Tether here for example and you will be able to see the daily interest rate, the annualized rate and the term of each of these loans
3:33
Basically borrowers who are looking for some money to do some trading are putting through borrowing orders for how much they need specifically at specific rates and when they plan on paying it all back by
3:44
And as you can see here based on the annualized rate as I'm scrolling through the funding market you can get some insane rates on your USDT
3:51
USDT. It goes up as high as a few hundred percent which is absolutely crazy. So what you can do here
3:57
is try and estimate how much interest you can possibly earn. So let's look at this one here
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for example they are looking for 1001 USDT over seven days. So 1001 here and if I click on that
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one that will give me a daily rate of 0.81 percent. So over 28 days I can earn $227 interest. So that
4:19
is just the estimated profit if they pay back on the last day. So that is one other thing to note
4:24
here The borrower can decide to repay that loan whenever they want and if they do repay this loan early then the interest will stop accruing So you could open up this loan with a term of 28 days and the borrower could end up repaying the whole loan within an hour And another important
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thing to note here is at the very end of the loan you will receive approximately 85% of the interest
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This is because KuCoin are going to take a fee and they're also going to take a small portion
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for an insurance fund which is meant to protect you if the borrower ever defaults on any of their
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loans. Now these borrowers are meant to put up a certain amount of collateral to try and prevent
5:01
you losing your money but in some cases that collateral can be depleted if the price of that
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asset plummets for example and then if the borrower cannot repay you on that loan ideally this is
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where the insurance fund should step in and protect you. But the one thing I would be skeptical about
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here is has this insurance fund really been tested out? What if everybody's collateral suddenly just
5:21
got evaporated would it be able to take that kind of a hit probably not so you really do have to
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recognize that there is a certain element of risk it's not like putting your money into a bank
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account KuCoin also have this auto lend feature that you can turn on and you can decide whatever
5:35
your minimum daily rate that you want to earn and say for example if you have it lent out and that
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borrower repays the loan this will then just automatically just reloan out your money and at
5:45
the rate that you want it to be at so what do you guys think do you currently lend out any stable
5:50
coins if so what rate are you currently lending it out at is there any other platforms other than
5:55
KuCoin or the ones we've looked at today that are offering even better rates let me know in
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the comment section and if anybody is new around these parts then make sure to subscribe to the
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channel to try and keep up to date with my latest videos
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