In this article, I'll show you exactly how to make 50% APY on your USD Tether on a noncustodial platform.
The Shortcomings of Yield Farming and CeFi
Yield farming was a big deal last year. You remember, right?
First there was Cruve and YFI, then Uniswap drop and 1inch drops. Free tokens, hurrah!
Plus, for lending coins in a decentralized manner on AAVE or Compound.Finance, users received tokens in addition to their returns. mStable has done a nice job of getting returns on tokens decentralized.
And of course there are those places, like Crypto.com, Celsius, and Nexo, BlockFi, which offer pretty good APYs returns. However those are centralized.
But with Ethereum Fees so high, it can cost more than months worth of returns just to get your tokens on a lending platform.
Waves' Low Fees and High Returns
Enter WAVES. Waves has been around for years, and their recent revamp of their exchange has been spectacular. Not only do they have an exchange, but they offer wrapped versions of dozens of cryptocurrencies. We're talking BTC, LTC, XMR, ZEC, ETH, just to name a few. All you have to do is send those coins to your wallet on the Waves.Exchange account, and waves will automatically convert them to wrapped WAVES platform versions of said coins. The only fees you pay are the network fees to spend.
Then on the exchange, you can trade as you would on Binance or wherever.
The fees range from 0.001-0.005 Waves. That is pennies.
But what I want to talk about to day is the incredible returns you can get on stablecoins. Yes that's right, stablecoins. USD Tether to be exact. And this is totally decentralized and totally trustless.
How to Stake Waves for 50% + APY
To do it you need to first go to the WAVES.EXCHANGE site, and either create a wallet or sign into yours if you have one already. You can then send USDT to your wallet or send any other supported crypto (WAVES, BTC, LTC, etc) and trade that for USDT.
Once you sign in, you can click the "Investment Tab" at the top.
As you can see, Waves offers a number of different staking options and their approximate rates. Neutrino staking lets you use Waves' native Neutrino protocol USDN stablecoin (this also has an ERC-20 equivalent). USDN tends to trade for a little less than USDT. However, there are better ways to use USDN to get a high yield, but we'll save that for another article. It is lower than the current USDT rates, but you can stake the governance NSBT token and stablecoins of several different fiat currencies.
Those regularly reach APYs as high as 80%, but there are more terms.
So click on Stake USDT.
How to Make 53.6% interest.
If you click "Stake USDT" you can stake your USDT tokens. As you can see, the annualized returns today was 53.60%!!! That's a lot better better than banks.
Rather than paying out every day, when you stake USDT tokens you are essentially purchasing UDSLP (liquidity provider) tokens. The value of those tokens grows (and never shrinks) to reflect the increase in value of the liquidity.
The only disadvantage of USDLP tokens is that when you unstake them, you have to wait two weeks for the USDT to be returned to your account. This is to discourage people from hodling their USDT without adding liquidity to the USDT/USDN pair.
However, like all Waves tokens, you can trade them in the exchange. If you need to get your tokens out in a hurry, the USDLP/USDT and USDLP/USDN pairs are fairly actives. Likewise, you can get USDLP tokens at a discount by swaping them to people either to take our their money.
Waves offers a totally decentralized exchange that works with several different coins that offers great APY liquidity providing terms for stable coins. Guranteed profit is always nice, and when it is enough to really be worth something and without crazy ETH fees, it is even better. If you know you're not going to be touching your cash for awhile, why not put it into USDT liquidity providing on Waves?