Usdc risk reddit. dollar Coinbase distributes rewards, earned for the days in which you have a balance of at least $1 of USDC on Coinbase, every month. View community ranking In the Top 10% of largest communities on Reddit Matic-USDC pair risk Hi guys, I am thinking to provide MATIC-USDC pair as the liquidity, and then deposit to beefy. Customers can transfer their USDC to other blockchains until February 2025, and retail users can move their USDC on Tron using exchanges. NO!! USDC and GUSD are stablecoins that are back 1:1 with the underline USD. All three are with the USDC Cyber Risk group. This stress test and reaction it is necessary, however. 07% for USDC-staking + 0. You take these risks with an amount you're willing to lose. Jan 26, 2024 · What is USDC? USD Coin, or USDC, is a US dollar-pegged cryptocurrency. I reasoned that despite a depeg it was not an issue with liquidity or anything related to markets but a bank/custodian issue and the trade fit my risk profile, it made sense for me that USDC would regain peg when banks opened. Unfortunately, we're unable to address bugs through Reddit. Rewards accrue daily based on your balance on the day, and the rewards rate you are earning. My team is actually growing right now in contrast to the layoffs happening at the rest of the company. DAI - company MakerDAO, backed by a mix of cryptocurrencies according to a smart contract mechanism, has a little bit more fluctuation, but is more transparent. Ethereum stablecoins: Review of DAI vs USDC. But he: no risk no return. This subreddit is just a giant echo chamber. It is a huge problem for maker though as a lot of people have been using dai and vaults to launder usdc into dai. Moreover people will loose trust in stablecoins. twitter: @fraxfinance telegram: @fraxfinance Recent data from Nansen shows that the combined transaction volume of major stablecoins Tether, USD Coin, and DAI has surpassed Visa's average monthly transaction volume for 2023. The team is doxxed, has been on DeFi for years with no scams/rug/-100% and has several projects under their wing and is trustworthy af. At Crypto. So I guess the question is why would you choose to With the high interest rate (9%) that you can get from holding USDC on Voyager (essentially just storing cash that will grow), what’s the risk… Risks of Stablecoin Liquidity Pools. This is not staking. dollar assets. This new APY is available to a limited number of our customers until further notice and will In my opinion, USDC is better. Just food for thought. com you can get 10% APY by staking USDC. We should all be avoiding Tether, as it appears to be a risk to the entire crypto market, and not just itself. If you just use stablecoins you don't really have to worry about collapse. But the answer is yes. If the govt sanctions us, it can throw of the peg and force an emergency shutdown. 2. May 26, 2022 · Getty. dollar. The lending APY is coming from the even higher borrow APY, so FF users who borrow USDC are paying the APY to those who are lending USDC, a wonderful risk-free synergy. AMP uses smart contract features purpose-built for collateral to help decentralize risk. 8 USDC) but you're going to run into the issue of of your receiving wallet supports either of those chains and any conversion issues. Also bear in mind it is an Ethereum stablecoin so if Ethereum was hacked or experienced any issues with its upcoming upgrades then USDC could be effected. Today I am questionning the relevancy of putting usdc as earn part and lock it for 3 months like it is done at CDC for a mère 6. 08, but only about $730k liquidity, so its probably just they have a lot more USDC than DAI LPs, likely just a symptom of the bear market and subsequent lack of liquidity in certain pockets of the market. USDC - company Coinbase,backed by USD reserves. Also, why are the majority of the delivery center reviews on Glassdoor negative? We apologize for the inconvenience. a and you need I itial amount of 5K NZD and 5 years locked. Interacting with any type of bridge carries risk: Smart Contract Risk — the risk of a bug in the code that can cause user funds to be lost Technology Risk — software failure, buggy code, human error, spam, and malicious attacks can possibly disrupt user operations . Unlike traditional crypto that most people are familiar with, like BTC and ETH, where you have complete control of your coins (your keys, your coins Downsides of staking USDC. Maybe get some stable Euro as well. 73. The same goes for USDC, but that does appear to be backed closer to a 1:1 USDC to US Dollar, but the risk is more prominent with Tether. If so many vaults are liquidated that the system becomes undercollateralized, then MKR will be minted and auctioned. com) has a Farms for USDC paired with pHBD (a token backed 1:1 by HBD, one of the longest -standing stables in the crypto space) with a yield of 35% APR. As you said, those losses should be captured in a lower interest rate. Edit: seems Uniswap and 1inch are back to normal ~1:1 accross the board, but still on https://raydium. It is kind of a Backed by Circle inc. Then, you can follow the instructions to transfer your USDC from Osmosis zone to your Keplr wallet. Read here. This decision is part of Circle's risk management framework, aiming to ensure USDC remains trusted, transparent, and safe. 10% if you hold on exchange. USDC natively exists in its ERC-20 (Ethereum-compatible) state, and so if you send your USDC to your Ledger device and you want your USDC to exist on the Ethereum network (as ERC-20 USDC), you'll need to withdraw it via the Ethereum Network to an ETH account. There must be a catch 10% on usdc , there’s no free lunch , change my mind. They are quite explicit about this risk in the terms and conditions. ) Just know that it can take up to a week. There is no guarantee like a bank that you could ever get your money Posted by u/Frank_at_reddit - 3 votes and 10 comments Earning interest on USDC is a great way to earn passive income. You bridge/sell it all to ETH You pay back your loan and get your USDC back Risk-free profit of all forks? Of course, apart from the chance the merge to "fail", whatever that may mean. Thank you for your understanding. com that I would normally have as part of my emergency funds. Is this correct? 8 comments. Sweet passive income! Currently have a decent stake earning 14% interest on crypto. A big issue was that this happened over the weekend when banks were closed so USDC could not create/redeem tokens and allow arbitrage to correct prices. View community ranking In the Top 10% of largest communities on Reddit Risk of total loss for USDC Vault (v2) while transferring some of my USDC to the v2 USDC vault I was asking myself how secure this is. This is the same reason why I'm not about to throw my life savings into any one FlapJackson420 • 4 mo. io dex, its hovering around 1. USDC starts out at 8% and USD 4% but goes to 8% if I lock in a term 90 days. Aug 31, 2023 · USD Coin (USDC) is a digital currency that is fully backed by U. InevitableSoundOf. One was the manager of the cloud group, one was over the vuln management group and the third as the VP. ago. a. I was trying to think of what risks would be involved in adding liquidity to a stablecoin liquidity pool on osmosis. g. This is smart risk management for binance and this should be another big hit for USDC. 15% APY to 1% APY provided you hold a minimum of $1 in USDC. 8. Assuming that USDC stays pegged to the dollar and you don't realize any potential capital gains, then the tax implications are the same. Coinbase gives you 5. During the SVB/USDC banking crisis, where roughly $3B in reserve funds were potentially at risk, we saw USDC depeg until the following Monday morning when concerns were relieved. Stablecoins are minted based on demand but must be back 1:1 to maintain its peg. It is matched by the dollar. Hey there, to withdraw USDC from Osmosis zone to your Keplr wallet, you'll need to utilize the Axelar bridge interface (satellite). The pay and benefits are less than core which is something to keep in mind. Billions dollar worth assed should be backed by a very solid structure. The only actual long term risk of USDC is if they are lying about their reserves, and the audits are false. It's not fantom's 'own' fUSDT! f stands for frapped, not fantom. Even staking for the flexible term at 6% or 8% for one month is better than nothing. It may not be fully backed, or there may be other underlying problems with coin. 50 range, it can definitely go down further but seems worth the risk. Apparently risk free and definetly better than leaving your "safety net", which you dont want to invest, on a traditional bank. USDT, USDC, BUSD, and algorithmic (mint/burn using smart contract). Vendors receive payments in fiat. Sadly, It appears that many of you are/were under the impression that the lending APY on FF is coming out of thin air, maybe from a rainbow dragon living in Narnia, and so you Osmo/Dai and USDC pools look pretty good right now with the high rates and Osmo current price. 5 percent reward per year. 369 trillion, which exceeds Visa's $1. There are more risky LP's that have a higher APY and take USDC, like UST-wormhole. The rate varies but usually between 5 and 10%. You can't literally use USD on defi platforms so when people want to borrow money to trade on aave/compound/solfarm etc. Crypto They said I have become a "Risk" as a customer. grimmolf. Would I then receive 3 x APR? 0. Reply. Safe staking platforms for medium-high yield USDC staking (no/low risk only)? Ethereum Staking Been out of the loop for most of the bear market and lost a lot of money a year ago with bad decisions, but recently dipping my toes back into crypto, and I have the plan to hold 50% of my crypto in USDC and stake it, so that i cannot lose so much if Polycub (polycub. 91%. Either event could be catastrophic. So a total annual return of 8. When you go through this process, there is no "staking". They have to borrow stables. This depeg occurred entirely within the pricing mechanisms of the world of Web3 / pricing oracles / liquidity pools, as the redemption of USDC to USD through Circle is People who have been in crypto for more than one cycle, probably saw this drop coming from a mile away. AMP enables cryptocurrencies like BTC, ETH, and others to be used to pay for goods and services. ___ Civil, On-topic Discussion of Anarcho-Capitalism and other Libertarian Topics. Bank deposits are protected by the FDIC, but companies like Voyager, Celsius, and BlockFi are always "at your own risk. It was textbook crypto volatility. USDC risk - it is considered on of the better USD stablecoins, but that doesn’t mean it’s perfectly safe. They'll review your account and create a case if necessary. Edit to add: they claim that they have full collateral in USD and short term US Treasuries. The major differentiation point - travel - disappeared post-COVID. On ramp USD from any multi currency account (I use DBS) to FTX Blockfolio for 1:1 rate of USDC and withdraw for free directly to Hodlnaut. Now you have ETH or forks on multiple chains. Hi all, im considering on applying to a usdc role but im not sure which role would be better for experience, growth ops and also pay/bonuses. S. . The money is not guaranteed, or insured by the government in any way. The company's mission is to maximize the value and utility of digital assets through our comprehensive product suite including advanced trading solutions, liquidity aggregation, tax-efficient asset-backed credit lines, a high-yield Earn Interest product, as well as the Nexo Platform and Nexo Wallet with their top-tier USDC is a fully collateralized US dollar stablecoin. Once you have access post your Reddit handle in #general-discusion with @Properal in the message. AXIE you can get 100%+ sand and mana you can get 30% matic you can get 12% . It doesn't go up or down. It's a dire situation for fantom, now that the Multichain CEO 'went missing'. 1. Technically correct, if USDC regained peg. Sure it is not FDIC insured, but even if the crypto market crashes at 75% of current 2 trillion Business, Economics, and Finance. So, you take the risk and speculate on USDC heading back to $1 knowing the market is irrational and could tank further before recovering. It's subjective honestly, in my country USDT is used over USDC, so USDT is far more useful for me. The Federal Reserve is also opening a program for loans to banks at risk of insolvency due to the market contagion effect/fears. Crypto prices/USDC immediately jumped on announcement. likely 6% real) for USDT and was wondering what is the best yield on Solana? Marginfi gives 3. USDC coin is backed by coinbase that has a bunch of dollars in a bank account equal to how many coins there are. The place your staking your money may go bust (wiped by a hack aswell), especially young companies which they are. •. I would avoid Tether altogether, but split you investment up between other stablecoins like USDC, DAI, Paxos Standard, and True USD. We recommend reaching out to our support team for assistance. While I would certainly be comfortable putting a small amount of USDC on crypto. It has been recently announced the Federal government will ensure that SVB/Signature bank deposits will be accessible Monday. If that's true, there is basically no risk to USDC, unless of course they are lying. Thing is USDC to my understanding is much more popular and massive. They can afford to pay it as they need backers and they use both crypto and stocks and bonds international to gain an average interest rate above 9%. The USDC stablecoin is pegged to the same value as the American dollar. Smart contract risk tho. Beginning today, your rewards rate will increase from 0. Later in the day I emailed the recruiter to check in to see if she got any feedback or what the next steps might be. It is a slight risk but thats why rates are high. r/CryptoCurrency A chip A close button. So that's still a third party risk. Discord: https://discord. Get app Business, Economics, and Finance. USD Coin is a stablecoin, and as such one USDC should always be equal in value to one So if I stake say $5,000 in USDC - can be $5,500 in a year. They are also probably not worried about If you want to send anything via ERC20 it's very unlikely to work out better doing anything other than just send the USDC as is. There is the risk that one of them defaults, or the market value is lower in the future, which could lead to problems with the 1:1 peg. While stable coins like USDT and USDC have risks of de-pegging like we recently saw when USDC dropped to $0. I have been reading up on the USDC department of Deloitte and I have heard a mixed bag of experiences, but the most concerning is people say the move up isn’t that good and USDC workers don’t feel they’re really apart of Deloitte. tamaleA19. Looks like the cheapest is on the Cronos or Polygon chain (0. Similar to TRX which is an alternative network to transfer USDT or USDC because of it's lower fees. USDCs are issued by regulated and licensed financial institutions that maintain full reserves of the equivalent fiat currency in a 1 USDC:1 USD ratio. USDC is backed 1-to-1 and its audited so that risk is low. “USDT bad”, but it has keep the peg for more time than most of redditors have known about crypto. Instantly all of defi is fucked as contracts can no longer move USDC. As I see it, there are only 2 risk related to this play: As I live in a European country, there is risk of the USD/EUR exchange rate changing. Financial Risk Transactions & Restructuring Gov’t. 5%), 1-2% on USDC, and many other Coins available simultaneously to choose from. For tax purposes, interest earned is interest earned. The biggest risk is default of CDC explained below: Let's say OP put's $100 USDC in earn for 10% yield, and I trade on margin using CDC and own $20 USDC. You will need to add more collateral or be liquidated. Suppose I borrow USDC against my gAlgo. You can then stake your Curve LP tokens on Convex to get a boost, but the APY is only about 3%. Same thing happened on Black Thursday when ETH crashed. But staking rewards get taxed like ordinary income, call it a 25% tax rate to make it easy - so I'd net $400. I have been now checking several banks and one of them (ASB) give me 4. She told me to call her. In effect that offsets my $400 CRO stake - can call the CRO Stake "house money". It's roughly 4. Risk of the USDC price deviating from the USD. At $1. In contrast, Even though MakerDAO has some of the most secure smart contracts around, traditional bank accounts have a much longer history and better understood risks. This risk is a bit overstated, though, because the losses are distributed. USDT is still lacking in terms of the audit. com, I wouldn't want to expose my entire bankroll to said risk while I ride out the bear market. But there does seem to be work shifting more to USDC. 5% just on USDC parked on Coinbase . The USDC that gets duplicated will not be pegged to a dollar, so you are taking speculative risk on whether holding a none backed stablecoin will have any value to people. Despite this, Tron's native TRX tokens remained steady in value. The safest is 3pool (USDC/USTD/DAI). 98% as cashback for paying interest on my USDC-loan. Starting to get very used to my USDC weekly deposits. Whoever they loan your money to may go bust and never pay it back (there is sometimes insurance offered by the platform on this aspect). On Friday I have my three 30 minute calls. com for your USDC. Cats become friends with dogs and hamburgers eat people. The higher your USDC balance, the more rewards you earn. coinbase might lose the USD backing USDC and tank that coin. What stinks is that I was not made aware of the change until after I made another USDC purchase to use on the card. I’ve noticed that it seems the larger the amount I withdraw, the longer it takes, unsurprisingly. I'll list some considerations that you might not be aware of: The 10% rate requires that you lock up your USDC for 3 month terms during which you can not access your funds. Once you have jade you can "stake" bitcoin for 6,5%, dot for 12% etc. Great news! You have been selected to receive an increase in the rewards rate for USD Coin (USDC) held in your Coinbase account. Interest is paid out every week and you can immediately access the paid out interest. The firm is trying to define the differences a bit more now, but currently it’s a problem. Borrowing interest being higher than trading fees means your principal will keep decreasing and your debt increasing. ETH has price risk, USDC has censorship risk. As its name suggests, USD Coin (USDC) is a cryptocurrency whose value is tied to the U. MINING-STAKING. Many people do this same strategy using Curve. USDT - company Tether, backed by unaudited USD reserves, just had a settlement with regulators in the US. The ONLY subreddit for Frax, the world's first fractional-algorithmic stablecoin. Now maker is the largest holder of USDC. Imagine instead of using ETH network for USDC transfer which has a higher fee, it will be under XRP network which has lower fees. Now we all know that this "value" is bound to change in the future and I understand the risks of putting all your metaphorical eggs into one basket. I think it will have value, but it might not be very much. That being said, being into the markets for a while now, doing 6 figures in crypto (bleeding as well atm, back to 5) knowing smart contracts and code, I would say that USDC in combination with a proper designed DeFi platform (and a bit on CeFi, like BlockFi) is the best Reasons to hope to see the age of 100 and beyond: Biomedical rejuvenation through damage repair, manipulation of metabolism, beyond the mere results of exercise, caloric restriction, and fasting. 75%. Alternatively just leave in FTX Blockfolio to earn 8%. Nexo is the world’s leading regulated digital assets institution. Accrued rewards are typically distributed within the first 5 business You get 12% p. com is reflective of the higher risk level associated with the site. USDC is backed by US dollars held in bank accounts. Blockfi could lose the USDC from bad loans and/or crypto crashing, dragging down the value of the collateral to less than 100%. Tether accounted for $654 billion, DAI for $394 billion, and USDC for $321 billion, totaling approximately $1. In 2023, Circle absorbed the Centre consortium and became Please join us on discord to gain membership to this sub. thx :) In crypto and blockchain, its easier to use stable coins like USDC. Projects like Flexa use Amp to secure transactions and build networks securely and transparently. There are two types of stablecoins to achieve this, 1) collateralizated approach (backed by fiat, other cryptos, cash derivatives, commodities) e. USDC was launched in 2018 by a consortium called Centre, which was founded by Circle and Coinbase. Advantage USDC. As i see it there is no risk involved other than bankruptcy/hacking of the platform, right? Archived post. If Coinbase decides to blacklist USDC that's inside MakerDAO, then USDC vault holders will get liquidated. USDC is the world’s second-largest stablecoin with a market capitalization of over $25 billion as of January 2024. Staking USDC. I’m considering staking some of my savings (10k EUR). You can lend via marginfi on solana for 5. 12% is pretty much the average APR on stable coin staking so it’s not uncommon, just spread your money in different platforms to spread the risk. GameStop Moderna Pfizer Johnson & Johnson AstraZeneca Walgreens Best Buy Novavax SpaceX Tesla. USDC also covers it with US Treasuries which makes it even more SOLID that the USD itself! Looks like it just did. Considering the whole fiasco with Ftx initially and binance I wouldn’t doubt USDC either depegging for abit or a full on token crash like UST back in the 84 past years. Well, the risk of keeping it on a centralized exchange is that the exchange goes down and your money is gone forever. It is an ERC 20 token on Ethereum so you have to worry about that platform and those tokens (pretty secure) and there's a little bit of risk that you have to worry about coin base getting shut down or going bankrupt etc. The rate will go down with more liquidity added but there’s some discussion about adding SFS to the pool and potential axelar external rewards. Circle, the company that owns USDC has started to freeze wallets that have used tornado. gg/ev9RhWE You will be asked a few questions before getting access. And there’s many many more especially lower cap ones with 100’s%+ APY. they have Here’s the nightmare scenario - USDC contract update is deployed that blocks the transfer() function for all addresses until they are whitelisted. I hold USDC alongside EEUR which also has similar functions and also interesting-bearing. There's 2 layers of counterparty risk. Reply reply. Not your keys, not your coins but at least Coinbase is a publicly traded company and insures your deposit. The risk is that banks are FDIC insured whereas these platforms are not. USDC is the same shit, all are inventions to provide liquidity to exchanges so they can profit from retail, and play borrowers and get interest from their own coin. Big yields are always unsustainable and a sign for ponzinomics. If USDC doesn't recover the Depeg, stablecoins will be subject to a very hard regulation and scrutiny. money/ and connect your Keplr wallet to the platform. 23 trillion. Drift insurance. 6% on BlockFi! Transfer fee of USDC from coinbase (or cb pro) to Celsius is pretty high (although it's lower now compared to 3-4 days ago). And yes, you're also risking your money on Voyager's solvency. You deposit USDC as collateral on AAVE You borrow ETH at 70% LTV with a fixed rate The merge happens. USDC is a tokenized U. The spending rewards are sometimes 2% on ETH (if not 1. USDC can issue their tokens on XRP, just like what they do on other networks. Would I then receive 3 x APR? Suppose I borrow USDC against my gAlgo. CDC will lend me OP's $100 in earn and use my $20 as collateral, giving me $120 total to invest and charging me 15-25% interest on the loan. If you do one day want to transition to core, I hear it can be difficult going from USDC. It's a compliant, audited, and fully-reserved stablecoin. It is likely that the optimal bridge design has not yet been discovered. Yes, you’re going to get paid less for what often feels like the same work as core (because it’s often the same work as core). There may be other tokens that might have more value but that again would be complete speculation. on crypto. Open menu Open navigation Go to Reddit Home. 5 percent p. There is no insurance that covers your deposits on any of these platforms if they are in a hot wallet earning interest. Whitelisting requires KYC. This is the correct answer. First, you'll need to visit the website at https://satellite. I use the card for every small purchase and the rewards stack up - so I'm definitely digging it. -Artichoke. Old ecocomic financial principles still valid. Multichain USDC. Deposit USDC into AAVE, borrow USDC against it and then deposit that USDC into Curve pool. The crypto world turns upside down. by Germankiwi22. Getting 4% on my main bankroll is a lot better than 0. And it is on the ETH chain, so high fees, only suitable for large amounts. Celsius pays 10% apy on USDC. So many. 15% and saves me the The cultist on here will say no way jose and downvote this. 9% APY on USDC for comparison. The higher APY on crypto. It is an Ethereum powered coin and is the brainchild of CENTRE, an open source project bootstrapped by contributions from Circle and Coinbase. " I have been spam applying to a lot of jobs trying to get some offers for a good company at a decent city or near. Crypto Im getting 20%+ on some lending platforms but that assumes a lot of rug risk on top of usdc intrinsic risk That 8% yield isn't solely due to risk either; it is more of a liquidity thing. I can easily transfer USDC from one exchange or from one wallet to another. Another risk is the underlying reward token price dropping so if MATIC and CRV price drops, it affects your returns. I am in the USA so I cannot earn interest in NEXO. I’ve had no issues withdrawing multiple coins, including USDC (though not nearly at such a high amount. And usdc for 12% really sounds like a really nice passive income with seemingly low risk. And I haven't done anything different nor changed my account in more than 12 months. Source: USDC Tax employee Assume that Tether is fined or goes out of business, that USDT cash equivalent will be made worthless, and that is most likely what the higher yield is being attributed to. OUTCOME 3. I do not trade it, I only use it to earn the free coins/cash they offer every month and that’s it. That’s what I was searching for thanks! Fantom uses regular USDC but has its own fUSDT. 2) If you are using SGD, then can on ramp via StraitsX on Gemini, swap XSGD for USDC (take note of high spread in app), and then withdraw for free to 8% currently with a chance to bump to 10%. 86, I wanted to inform some people that there are other risks associated with them. dollar, with the value of one USDC coin pegged as close to the value of one U. Binance announced huge yields (13% promotional. It must be frustrating dealing with this issue. 3-1. Looking at pool #939 USDT/USDC and it has low liquidity and volume (about $90k and $25k) Some risks I thought of would be if a stable depegged, or if there was a hack. Usdc is digital dollar. The 2 roles im deciding between are: Internal Audit & Assurance vs. What a crazy weekend lol. 7% for USDC-deposit + 7. From this link it seems that these stablecoins you mentioned are able to provide higher interest rates, because they invest in higher yielding securities as well. ha is ov hh xl rc vj cl kz ex