So I will punt my take on it:I see all these exchanges and services like Swissborg and others offering pretty high % on deposits in stable coins and even higher on non-stable ones:
Discover the full list of assets available at the best price execution and next to be added.swissborg.com
Why would anybody pay you 9% interest on your stable coins?
BlockFi may be transparent, but they've changed their rates for everything besides stablecoins to almost nothing, and those changes were mostly from one day to another. Their interest is also paid monthly which sucks and they have penalties and such things, looking at their ToS alone should be enough to not use them.BlockFi is the most transparent. Unless something has changed, BlockFi holds its assets with Gemini, which has insured its hot wallets (wallts from which withdrawals and deposits are made). - https://help.blockfi.com/hc/en-us/a...re-the-risks-of-holding-my-crypto-at-BlockFi-
Crypto.com has about $700M in insurance, which probably covers their hotwallets, but I imagine they have $50B+ under management.
My rating would be this is for credibility/reward ratio :BlockFi may be transparent, but they've changed their rates for everything
Mine, from personal experience, would be something like:My rating would be this is for credibility/reward ratio :
Celsius > Blockfi > Swissborg > Nexo > Binance > crypto.com > youholder
since most TOS of any crypto business is that you own nothing and will be happy then arguing about these TOS are pointless. If someone call tango down on any of them you will lost 100%. Insurance covers usually like 0.1- 2% of total assets.
Sounds like very risky stuff, and as you said in bear market many of these people should be liquidated and these loans will die out as well.So I will punt my take on it:
I am using Swissborg/BlockFi/Celsius.
1) you have shown Swissborg this one goes around DEFI projects and pays you yields from DEFI projects arround. this is uniqe buisnes model comparing to others. Rates are usualy lower than anywhere else. They are good to do divesification of funds.
Why people use DEFI ? and pay 9% "fees" XD in bull run we chase ponzi, some people will clean their trace of assets they will sell it with 9% discount.
Real reason is that on bank account you will have 0% so people go into crypto play ponzi. If I was noob for sure I would take ride with swissborg even with their fees.
2)Blockfi/Celsius/Nexo this one can be tricky to explain becouse there can be many reasons possible.
Best most important is borrowing fiat aganist your asset is tax free, till time you are liqudated xD. So imagine you can sell your BTC now but this is bull run it can make x3 - yes? Then better will be borrow now 100k USD don't pay short-therm tax 20-40% on that. But borrow against your asset you can use 100% capital today no taxes today. You have your BTC still. After 4 years you owe to pay like 150k, but BTC colatrarazed for that is worth 3x more. So in reality you ow like 50k, if you add inflation it will be like 38k for Americans. And what is more important you pay after 4 years tax that is worth -6%-6%-6%-6% inflation. XD. So in many countries you have tax free income becouse you postponed tax. I don't know how many people will have such thinking.
Many of them will think I will never pay it back becouse on average BTC have risen +100% every year so in teory you can have that loan forever.
Downside is that if you have to much leverage it can easy wipe you so in reality is keep 20% LTV loan in asset.
3) On market there are buyers and sellers if someone want short USD/USDC or BTC he have to borrow it, becouse we are in bull run is easy to make profits. BTC makes ATH means there is noone in "-" maybe short players.
Big taxes on crypto gains + inflation can realy fuel that lending.
Now best part from other USD side. Is realy good to "lend" USDC on 10% than sit it on current balance. That cans will go to lenders and will be used to pump market on leverage even more. We have real supply of USD/USDC to crypto market and it won't end till we have REAL POSITIVE INTREST RATES XD.
We will fuel that ponzi much more IMO.
For me Blockfi,Celsius,Swissborg are most trustworthy in cryptomarket brand is most you have to lose. Nexo(noone realy know where find people who run your part - no company adress at all, one of coofunder was running p2p lending scam, some others located in Sychles/Cyprus/Malta).
Crypto.com is so appealing but in reality funding F1 / stadiums will cost a lot, that reminds me Madof ponzi in US to much, they are burning a lot of cash on marketing. If all around gives you 8% APY and some gives you 2x that I bet it will be exit scam.
Till bull run most those big APY platforms won't go down in bear market we will see where king is naked for sure.
Yes this is risky. But risk in not equal for everybody people. Loans in crypto are overcoatelazed usualy Celsius/Blockfi have LTV like around 50% so price have to fall more than -50% to get liqidated.Sounds like very risky stuff
Failures make the echo system more robust. Unlike the banking sector, where failures are not allowed and lead to the failure of the entire echo system.I just searched this thread for the word "Celsius"
Alongside it, you find words like trustworthy and the best choice
Yes, banks are bailed out, and zombie institutions are kept afloat, which is a whole other scandal. But anyone using the words trust and the best choice with Celsius should feel ashamed. It was picking up pennies in front of freight trains.Failures make the echo system more robust. Unlike the banking sector, where failures are not allowed and lead to the failure of the entire echo system.
There is no return without risk, by definition.
Holding keys is a necessity for some applications. I see good and bad players, it might be a similar situation as the dotcom bubble burst, from which Amazon emerged.Yes, banks are bailed out, and zombie institutions are kept afloat, which is a whole other scandal. But anyone using the words trust and the best choice with Celsius should feel ashamed. It was picking up pennies in front of freight trains.
Do you think the ecosystem is better for it, though? I can see something coming along that does the same thing (holds your keys or has an admin key) and people still flock to it.
I like it too but to be honest there is a lot of risk withing space.For example I like SwissBorg.