interest rates for stable coins

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franksmith1863

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How are some crypto staking platforms able to offer such high interest rates for stable coins (USDT, USDC, etc.) like 10% or more, while banks offer virtually nothing?

Posted 02 May 2022

oliviabacker says

oliviabacker

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A good question by the way. Every person can make money on cryptocurrency. There are many ways to make this money, both with investments and without cash costs. The truth is, for successful trading, you should definitely choose this best crypto platform and put some effort into market research. Check the info abour USDC interest rates and stay on the top. Hope it will make sense for you

Posted 03 May 2022

Franklee says

Franklee

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The easy explanation is that high interest rates compensate people for the risk that the stablecoin will fall off its peg. But prime stablecoins like USDC and Pax (USDP) are fully backed by high-quality dollar assets, so the risk that people will lose their money is small. No, there is another reason and it highlights a fundamental conflict in the purposes for which stablecoins are used.
We know why interest rates on actual dollars are so low. The Federal Reserve has cut interest rates to zero, so banks have no reason to pay interest on deposits. And the Fed has issued trillions of new dollars, so there are far more cash dollars circulating in conventional markets than anyone has a use for. No one wants dollars so they don’t command any interest.

Posted 03 May 2022

jiuer7845 says

jiuer7845

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Posted 02 Oct 2022

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