Vires - Last year USDC was pretty much consistently over 25%.
You are telling me if someone had 10,000 dollars and converted it to 10,000 usdc and did this, they would have gotten 2,500 usdc for the year? So wouldn't that mean someone with a million dollars would earn a quarter million? There is no limit to how much you can put? But then you mention there is risk on this which has me confused.
Yes exactly. I participated in Vires from early on and I think my APY is much higher than 25% considering also the early bird & supply rewards (which are paid in Vires tokens).
Well there is a theoretical limit in that, if you put in significant amounts (in relation to the current supply which now sits at 280M for USDC) you drive down the APY, as the APY is a function of how much is supplied and borrowed. So if you supply $10M (and nothing new is borrowed) then the APY might decrease from 17% to 14% or so (just an example).
In the end the borrowers pay your "interest", if there are none you'll also get no interest. I can't tell you who they are, but they must exist, otherwise Vires wouldn't earn any money (which apparantly currently they do, $43k a day for the whole platform if you look at the governance)
Well USDN... wasn't the staking percentage over 10% a while back. So now if it is under 6%, how would that make sense staking it if someone could stake a stablecoin like usdc/usdt or say gusd in nexo/blockfi for more than that?
As I wrote the USDN Staking rates depend on the Neutrino SC. If the rate is too low for you then just put your money somewhere else
When you say lock Wx tokens, you mean you have to buy them right? Thus buy it to stake? The issue here is if Wx drops a lot... then you would lose money right? I saw they seem to advertise like 25% interest on Wx... is that correct? So someone with 5000 Wx worth would earn 1,250 Wx a year? But the risk here is if the price drops more than 25% after a year, you lose money? Example you buy Wx for 1.25 and buy 5000 of it. You invest it in that pool and keep it there a year. So as long as the Wx price doesn't drop more than 25% from the price you bought a year ago, you profit correct? Assuming you plan to sell it after a year? But if Wx stays the same, you literally earn 25% because you then just sell all the Wx? If Wx goes higher, you earn 25% plus whatever the Wx prices go up to?
I think you basically got it right. What you describe here is a standard problem for any coin/token that promises high staking reward. Most of the time the staking reward comes from the inflation of the token supply and (unless the demand for the token increases) this will drive down the price of the token. 100% Staking reward only gives you a profit if your token doesn't drop more than 50% in price.
The WX IDO was last November for 1 WX = 1 USDN and the IDO tokens are relased until November this year. The WX price will not go much higher or lower than 1 USDN until then in my opinion. However, WX still has a high inflation (you can check the token release schedule in the waves.exchange). Don't expect the price to bottom out in the coming months either.
So in terms of all these investments, which is the safest? Isn't it staking waves you have since you will get a consistent return on it which is more waves? Of course this is same situation like when you buy waves and earn waves but if waves drops more than x percent that you buy it, then you lose?
I guess this depends on your goals. Do you want the highest possible profit? Or the safest investment? Do you want to increase $? or Waves or BTC?
For most people it is advisable to have a mix of different products in case sth goes wrong with one of your investments. I wouldn't even invest all of my money on Waves only.
There are news almost weekly that somewhere some platform got hacked or the owners run off with the funds. Fortunately this hasn't happened with Waves, but one can't be careful enough in the crypto space
What has me confused here is... does the waves exchange allow you to earn interest via stablecoins like with usdc/usdt/gusd like with nexo/blockfi/gemini where you get a flat rate and there is no concern of prices since its pegged to the dollar? Obviously they can drop the rate a percent or two but that would stijll be earning passive income. So does waves exchange offer this? Example, you go and get 10,000 usd and convert it to usdc/usdt and just stake/lend it for passive income? Because you seem to imply someone would have earned 25% last year if they did usdc... which seem really high etc. If that is the case, why would anyone stake/lend usdc on nexo/blockfi then for around 10% when they could get more with waves exchange?
It is a complex problem and I can't give you a 100% good answer either. My question here would be: How can nexo/blockfi pay their interest? Where does the money come from to pay the interests on those platforms? I actually have no idea and would like to know.
Maybe they call it simply "Staking" but do some high risk trades in the background you don't know anything about?
As I wrote in my last post, the interests for the Waves products are generated in different ways: Fees from borrowers (Vires), liquidity provider/trading fees and WX token rewards (WX Pools), liquidity provider fees on Ethereum (LP tokens), Neutrino SC mechanism (USDN Staking), ...
Some Waves products might have higher APY right now, but a whale with a significant deposit could easily drive down the APYs for most of the products. Maybe it's also a question of accessibility of the platform/blockchain and nexo/blockfi operate on ETH or BSC and haven't looked much into Waves? As I said, I think eventually the APYs for similar products will be similar across different platforms once they are inter-operateable.
Each of the different products is associated with different risks and transparency (in that you know whats actually in the "black box" and where your interests come from). In the end you have to decide for yourself how much money you want to put in certain platforms based on that.
