Sirwin
Sirwin

Stablecoin Yield Hunting on CEXs

By bengy | Idle Musings | 1 Jan 2024


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Now that Binance is going to be under a minimum of 5 years of surveillance from the US Department of Justice and other organisations, I thought that it would be a good time to start looking at other CEXs. Not because I have anything to hide, as the constant surveillance might be a good or bad thing for the US government acceptance of Binance... but it might mean that the Binance dominance of the CEX trading front might start to diminish... and that means that a good deal of that activity will either move to other CEXs or on-chain. Ideally on chain, but if we are going to be really pragmatic about it... it is more than likely that existing (and new incoming more likely) liquidity is going be onboarded via CEXs instead of DEXs.

Two alternative CEXs (in addition to others that I already use...) stood out as possible explorations... ByBit and OkX... both of which offer perpetuals and leverage, as well as savins products that are available in Australia (unlike Binance, which had to retract those services in Australia).

Now, the perps and leverage aren't of interest to me... but the interest (ha ha...) on savings, lending, and earn products are definitely of use to me! I originally used Binance for a good chunk of that... but since then, I've slowly been moving things off there and to on-chain holding or other CEXs while I figure out what to do with them.

Now, it appears that ByBit and OkX are going to be viable places to put some stablecoins and other altcoins to work again. Stablecoins are possible to deposit and withdraw on many cheaper chains and Layer 2s... but many of the other altcoins are only available to deposit/withdraw via Ethereum. That isn't too much of a problem for the deposits, as I use WooX as a bounce off point with free withdrawals for staking the WOO exchange token.

 

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So, on OkX the first 1000 USDT and USDC attracts a decent bonus interest... now normally that means it sits at around 10 percent... but for some reason, it recently spiked up to 58 and 51 percent! Of course, that was just temporary due to lending, and it will fall back down to regular 10 percent again.

This is much better than the 5.2 percent USDC offering on Coinbase. And it is also available for USDT as well as paying out each day instead of once a month.

 

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Meanwhile, ByBit offers 15 percent on the first 500 USDT... again better than Coinbase. So, another viable place to park a small amount.

 

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... and USDC also attracts 8 percent on the first 500 USDC, so again, another good place to park a small amount of that stablecoin.

So, I will start moving other altcoins to both ByBit and OkX for the savings/lending rates... Of course, there is risk involved... but these are two of the less dodgy CEXs... on the other hand, everyone did think that FTX was okay until it wasn't okay!

But... for small amounts, it is better to have those things being put to work... and it doesn't hurt to start investing into those exchange tokens (bitDAO and OKB) in case they do take significant market share in the future!

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Handy Crypto Tools

Ledger Nano S/X: Keep your crypto safe and offline with the leading hardware wallet provider. Not your keys, not your crypto!
Coinbase Wallet: Multi chain wallet with lots of opportunities to Learn and Earn!
Binance: My first choice of centralised exchange, featuring a wide variety of crypto and savings products.
WooX: The centralised version of WooFi. Stake WOO for fee-free trades and free withdrawals! This link also gives you back 25% of the commission.
GMX.io: Decentralised perpetual futures trading on Arbitrum!
Coinbase: If you need a regulated and safe environment to trade, this is the first exchange for most newcomers!
Crypto.com: Mixed feelings, but they have the BEST looking VISA debit card in existence! Seriously, it is beautiful!
CoinList: Access to early investor and crowdsale of vetted and reserached projects.
Cointracking: Automated or manual tracking of crypto for accounting and taxation reports.
KuCoin: I still use this exchange to take part in the Spotlight and Burning Drop launches.
MEXC: Accepts HIVE, and trades in most poopcoins! Join the casino!
ByBit: Leverage and spot trading, next Binance?
OkX: Again, another Binance contender?

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bengy
bengy

I am a Musician (Violinist/Violist) specialising in Early Music living in The Netherlands. I have a background in Mathematics and Physics due to an earlier tertiary level study... and so, I'm still quite interested in Science and Technology related stuff!


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Idle Musings

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