Let’s discuss stablecoins and earning interest at BlockFi

Most of my investing is passive/dollar cost averaging, I don’t do much active stuff. With interest rates as low as they are, there really isn’t any good place for cash to sit right now, and I’m happy with my stock portfolio plan so far, so I’m looking at the high interest returns from BlockFi for things like holding GUSD with curiosity.

I know they’re fairly risky for a few reasons, but seems like an interesting option to put some cash into and get very high returns.

Who is doing this? Any tips/stories to share?

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You need to check out https://celsius.network/ the website is still a work in progress but the iOS app is coming along. The reason why I use them though is the GREAT rates and I’ve moved money in and out and they honor their commitments. Can’t say the same for some of these others, lots of talk very little results (and hidden fees)


What about Wealthfront.com and sites like that?

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Jeff!! checkout titan invest (it’s hedge funds for the rest of us)

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I am happy with the performance of my wealthfront account. They have introduced new customization capabilities recently

I have my 401k in betterment, and a decent amount of money in acorns. Never signed up for wealthfront, but I’ve heard good things. I now use M1 for the majority of stock investing, and it’s all just set and forget.

The one thing that I’m unclear of with blockfi, is what is happening on the other end of those interest rates that lets them offer that high of interest? Seems like it has to be high risk loans or something to drive those kinds of returns

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One kinda strange article I read about this:

The traditional (and correct, IMO) advice is to invest in the index funds. But if a zillion people all do that… unintended consequences? :thinking:

Voyager has done well for me. Like the brains behind it and they pay interest like celsius.
Buy the dip and don’t forget the chips.

@dchuk I’ve been running a few tests on various interest bearing crypto “investments” that I have come across.

I mainly use the BSC as the fees are so much less, but I noticed Yaxis has a yield optimising strategy for usd stable coins on the ETH chain which claims around 59%apr or 74%apy

I am farming usd stable coin pair lp tokens on PancakeSwap for around 20% (average across 4 markets, busd, ust, usdt, usdc)

I have several other tests running (pegged btc pair lp’s, single token staking, auto-compounding) which I will report on in my blog over time.

I am getting a bit sick of the stables though as I watch the markets rise and rise!

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I do have some USDC parked on BlockFi to access the 8.6% APY and promotional bonuses they offer. The interest pays out (and compounds) monthly, but the website and app have a daily-updated “accrued interest” counter, which is quite satisfying to check on – especially if you also have old-fashioned “high yield savings” (0.5%) to compare it against!

Shamelessly leaving my referral link for the deposit bonus: https://blockfi.com/?ref=66eef4f3

As far as I understand, BlockFi can pay out high rates for stablecoin deposits because they’re able to turn around and lend it out at even higher rates to crypto hedge funds. Those hedge funds in turn engage in yet still more profitable carry trades and other arbitrage; and they don’t have many other willing sources of USD leverage.

It’s cool to have this complementary way of profiting from the crypto ecosystem, with BlockFi providing me a very simple customer experience, and managing all the lending risk. The terms are clear though: they may have to halt withdrawals in “extreme market conditions,” and your deposit is not insured in the event they blow up. So, despite feeling like a savings account (in good times), it’s only suitable for a small, diversifying slice of an overall portfolio, and doesn’t replace a fiat emergency fund.