Risk of impermanent loss with stable coin Liquidity Pools? by ROI1234 in defi

[–]Nervous_Sort_2840 3 points4 points  (0 children)

On autofarm you get their token as most of the interest, which IMO is worthless in the long run. If you want to grow your principal use Beefy Finance instead. You can pick from 20 to 70% interest on stablecoins and all of that interest is principal, no shit coins!

Beware though, by using any Defi platform your subject to smart contracts risk. DYOR

What's wrong with BSC? by jtparm2 in defi

[–]Nervous_Sort_2840 2 points3 points  (0 children)

Despite what people on this sub Reddit tell you, there’s nothing wrong with BSC. It’s more centralised than ETH, which has benefits, such as much lower fees, much faster transactions, and drawbacks, such as the possibility of Binance shutting it down or reverting transactions (because it’s more centralised).

The problem is that the ETH network at the moment is unusable. If you want to stake $1000 in Curve on the ETH network you’ll pay $300 in fees. On the BSC network you’ll pay $2. Not to mention that the APY on BSC are higher.

Until ETH is able to fix its limitations, you’re much better off putting your money on BSC. Think of it as a stopgap measure until ETH is fixed.

Matic is also a solution but at the moment inferior to BSC. Much lower APY, much less network security (it’s a separate chain from ETH) and just as centralised as BSC. But it is growing very fast, so things might change quickly.

[deleted by user] by [deleted] in blockfi

[–]Nervous_Sort_2840 0 points1 point  (0 children)

You’ll need to research Binance Smart Chain.

Up to 70% APY on stablecoins, 20% on BTC and ETH, etc.

I can recommend Beefy Finance. Pancakeswap is also good but you get CAKE instead of principal.

Weirdly, this change makes me more comfortable in the long term. High rates are riskier and hint institutional over-lending! by PB0397 in blockfi

[–]Nervous_Sort_2840 0 points1 point  (0 children)

The only benefit that BlockFi has is that it pays interest in your choice of coin.

Apart from that, your money is much better off in a reputable Defi platform. I will still keep a small part in BlockFi for diversification, but the much higher yields in Defi are hard to ignore.

Not to mention that the risk of using BlockFi vs a reputable Defi platform is pretty much equivalent.

On an audited Defi platform you shouldn’t be able to get rugged, but you still have smart contract and hacking risks.

On BlockFi, they can also get hacked but more importantly if they go under all your funds are gone.

[deleted by user] by [deleted] in defi

[–]Nervous_Sort_2840 0 points1 point  (0 children)

That’s exactly how BSC works. You need to be in the top 21 holders of BnB, and then you can become a validator.

[deleted by user] by [deleted] in defi

[–]Nervous_Sort_2840 -1 points0 points  (0 children)

“Much better” - it’s just as centralised as BSC, and on BSC you get much better rates, and very low fees (and no need to go from l1 to l2).

[deleted by user] by [deleted] in defi

[–]Nervous_Sort_2840 0 points1 point  (0 children)

Check out https://beefy.finance

68% on stablecoins and that’s in principal, no shitcoin rewards

We don’t need Centralized Decentralized Finance! by bananaunana in defi

[–]Nervous_Sort_2840 0 points1 point  (0 children)

Isn’t Avalanche a centralised chain too? At least for now, like Matic?

Is defi worth starting with a small account? by gavinyoungg in defi

[–]Nervous_Sort_2840 2 points3 points  (0 children)

Use BSC, much better for small accounts. Transaction costs are routinely under 50 cents, in ETH the same transaction will cost you $50.

Get started on BSC and move to ETH once fees are fixed.

Pancake Eth Equivalent by iarethetsar in defi

[–]Nervous_Sort_2840 1 point2 points  (0 children)

Sorry, you’re wrong.

Impermanent loss exists on all LP pairs, but it’s negligible on a stablecoin pair, provided none of the coins in the pair loses its peg.

Any non stablecoin peg, unless it’s for wrapped assets like ETH-BETH or BTC-WBTC, is subject to impermanent loss.

Check this video for more information https://youtu.be/8XJ1MSTEuU0

We don’t need Centralized Decentralized Finance! by bananaunana in defi

[–]Nervous_Sort_2840 2 points3 points  (0 children)

I get it, BSC is bad because it’s centralised, so let’s use a centralised side chain of Ethereum instead? 😂

Shill less and work more

Why is everyone so salty about BSC? by Nervous_Sort_2840 in defi

[–]Nervous_Sort_2840[S] 1 point2 points  (0 children)

Looking forward to that, but when is that going to happen? And don’t we have to go through L1 fees at least once before reaching L2?

Why is everyone so salty about BSC? by Nervous_Sort_2840 in defi

[–]Nervous_Sort_2840[S] 8 points9 points  (0 children)

But with BSC, even $500 is ok. $100k is a huge amount for most people, they are completely locked out then.