Following my recent post about cashing out my OP rewards, I received some great feedback from you guys. A special shoutout to CryptoSheriff for pointing out that OP can actually be "staked" on Moonwell through the Optimism (Ethereum's layer-2) chain!

However, I'd rather talk about lending there...

For those who might be wondering, there's a key difference between staking and lending. When you stake, you're essentially locking up your tokens to help secure the network and earn rewards in return. With lending, you're allowing someone else to borrow your tokens, and they pay you interest. While lending can offer higher returns, it also comes with more risks, as there's always the chance the borrower might default + smart contact risks.

So I checked Moonwell. Here's what I found:

Although I already use Moonwell on Base (mainly to get some exposure to that layer-2 chain in case of an airdrop), I'm not a huge fan of lending due to the inherent risks.

I prefer good old-fashioned staking, like I do with Polkadot for instance. It might not offer the highest yields, but it gives me peace of mind knowing my tokens are relatively safe.

Furthermore, I do not see any strength in the OP token or in the Optimism blockchain itself. However, if you think OP can pump again, you can lend it on Moonwell to earn 3.3% APY.

Disclaimer: No financial advice. Please DYOR.