While I was starting my day, I saw this advertising on my homepage (note: I use Brave browser):
As I started to scratch my head to find $1,000 to deposit in order to easily get $50 from these nice people, it reminded me a previous similar ad:
We all know what happened with Celsius: people got their bonus, but the ones who did not withdraw before bankruptcy never saw their money again.
So, coming back to YouHodler, how do they dare proposing the same offer as Celsius? This is what Alex Mashinksy, Celsius CEO, said on Twitter last year:
The FED lets banks borrow $USD at 0% but #DeFi says the cost of USD is 8% Who is telling the truth? Banks insist on NOT paying you over 0.5% for your money
@CelsiusNetworkhas paid over 8% for years paying $760m to its community of in the past few years
In summary, you were cheated by the official banks, and Celsius was there to restablish the truth and give you the 8% on your USD that you deserve...
Now, let's look at what Ilya Volkov, YouHolder CEO, said on Twitter last month:
To avoid any doubts related to the “Celsius event”: #YouHodler does not have liquidity issues because we never used customer funds for "rehypothecation" or any other risky strategy (stETH, Ancor, Luna, UST, etc...). Funds are safe, and all services are up and running.
Let's assume that we trust what he says - which is contradictory since crypto is about trustless transactions. Now, the question is, how can they offer so high interest APYs (Annual Percentage Yields) on the coins you would lend to them, e.g., 10.7% on USDT, 5.5% on Ethereum (ETH), 4.7% on Bitcoin (BTC)?
Let's compare with the interest APYs you can expect to earn by using DeFi (Decentralized Finance) protocols yourself (source: Coindix.com):
- USDT: 37% by using Vires protocol on Waves
- ETH: 12% by using Cream on BNB Chain
- BTC: 6% by using Benqi on Avalanche
Things start to be a bit clearer... YouHodler is making DeFi for you. There are some pros and cons:
- Pros: you do not need to check all these DeFi protocols yourself, they do it for you, just deposit the money and earn interests.
- Cons: you do not check the protocols yourself (there can be exploits, rug pulls...) and you could earn more by doing it yourself.
Therefore, we can understand that some people use YouHodler. However, if you want to spend some time to discover yourself all these DeFi protocols (for instance, by using Defillama), and if you are a bit patient, you will earn more on your $1,000 than the $50 bonus + the portion of the interests (earned on DeFi) that they are willing to give you... And at least you can check yourself where your money goes and make a real risk assessment.
In summary, I'd stay away from YouHodler and other CeFi's - there is no easy money. The best way to make money safely is to Do Your Own Research.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.
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