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How secure would you say staking is?

uplana

uplana

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#1
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I just watched a video at kraken about staking assets with them. Some assets promise 8 and up to 26% ARP

The fact it's not possible to stake that many crypto assets makes it complicated to figure out which one to stake. I mean, why isn't it possible to stake USDT or USDC or other more recognized stable coins ?
 
#3
uplana said:
I just watched a video at kraken about staking assets with them. Some assets promise 8 and up to 26% ARP

The fact it's not possible to stake that many crypto assets makes it complicated to figure out which one to stake. I mean, why isn't it possible to stake USDT or USDC or other more recognized stable coins ?
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"The yield must come from somewhere, if the source of the yield is not clear, you are the yield"

You can only get yield on these if theres a great underlying borrow lend market, p2p or otherswise.
Usually pos cryptos just give you inflation. So best to not engage with this too much.
Staking argentine pesos and turkish lira has outstanding yield as well.
 
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#4
So staking Ether using Ledgers Staking platform would not be very advisable ?
 
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#9
What is the current staking or savings yield on stable coins like USDT? Last time I checked, it was above 10%, with no counterparty risk (besides the platform).
 
#11
Yes people are confused with the word "staking":

You can stake coins at the protocol level (ETH, DOT, XTZ....). Risk is low if done properly (keep in mind that your stake can still be slashed if your delegated validator misbehaves). For Polkadot for example you get around 16% but the coin has an inflation of around 8% so real rate is 8% or so. Unstaking can take a long time so you could be missing selling opportunities.

Or you can "stake" on centralized or pseudo decentralized platforms meaning you give them your coins and they promise you a yield in exchange (you could deduce the higher the yield the more risk they take or they are simply running a ponzi). Risk is high as you can tell with the fate of numerous centralized entities (FTX, Blockfi, Celsius, Voyager, Genesis and so on).
 
#12
JackAlabama said:
"The yield must come from somewhere, if the source of the yield is not clear, you are the yield"
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#Bingoooooooooooooooo (I'm bookmarking this nugget of wisdom in my diary!) Thank you!

From 1997 to 2000, I didn't invest in "dot coms" because I couldn't figure out where the "money profit" these companies were earning & sharing with me was coming from. These companies couldn't give me an answer either. I understood the models of AAPL, MSFT etc. They built a product for X and sold it for (X+80%X). I would get a piece of the profit they earned.

Dot Coms elicited nightmares of Tulip Mania and Pyramid Schemes and started disturbing my financial dreams.

Same as with products I purchase for resell ... I know for a fact that Apple doesn't have a discount program where they sell new iPhones 15 for US$400, so it's either stolen, damaged, or a fake iPhone. :rolleyes:
 
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#17
avalanche said:
Check discussions online regarding safety of these "smart contract" pools.
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Yah spot on. these smart contracts are a joke at best and highly insecure.
Nothing to take seriously really.

However its nice thing to gamble on them, like another alternative to online casino games being a good mix between poker and roulette.
 
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