Currently, there is a huge bubble in the DeFi market, and in the case of liquidity supply (LP) yield farming, which has been incorrectly entered, there is a risk that a large asset loss may occur due to a huge price collapse in a short period of time, unexpected contract errors, and scam projects. It is true.
However, I personally think it is quite a smart investment to use the interest rate stablecoin related investment products that have their own relative advantage behind the tremendous price increase of the DeFi project native (governance) token and the tremendous short-term high yield of Yild Farming .
We will briefly summarize DeFi products that can receive higher interest rates than deposit interest in traditional financial markets by using stablecoins as of the current standard.
(1) Binance BSwap
- You can supply liquidity of heterogeneous stablecoins and earn commission income.
- Currently, we support USDT / DAI / BUSD.
- The above stablecoins can use BSwap as well as Binance Savings alone.
(2) Uniswap Pool
- This is the UNI token liquidity mining pool launched today.
- Currently, DAI / USDC / USDT / WBTC are supported, and the relative LP pair is fixed at ETH.
- Compared to BSwap, there are risks of price/quantity fluctuations in ETH and price fluctuations in UNI tokens.
(3) Mooniswap Pool
- This is a liquidity mining pool where pre-mining of 1INCH tokens is in progress.
- There are various pairs, from stable-stable to ETH-stable and Ether-ERC20.
- In addition, there is also an LP pool composed of heterogeneous stablecoins.
- As 1INCH tokens have not yet been released, it is difficult to estimate an accurate APY as of now.
(4) Curve Finance
- It supports a wider variety of stablecoins than the pool mentioned above.
- APY is relatively low due to the fall in the price of the governance token CRV.
- There are many parts that can feel a little complicated, so Curve Pie requires a lot of learning in advance.
Among the various products currently offered by DeFi and CeFi, there are quite a few that can get quite high APY. Some of these are digital assets with high price volatility (BTC, ETH, etc.) in pairs, while others are LPs composed of heterogeneous stablecoins . The choice will vary slightly depending on your investment tendency, your current position, and your preference for risk, but LP composed of stablecoins is a product that you need to experience at least once in a situation where APY is high as it is now. .
I don't know anything else, but thanks to the success of DeFi, the fact that exchanges gradually move their digital assets to personal wallets and more people use personal wallets is a really big move in the crypto scene.