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This statement makes no sense. For a start, stablecoins provide no yield. What you can do is lend your stablecoins and obtain a yield, in the same way that yo
by lottin 5y ago
This statement makes no sense. For a start, stablecoins provide no yield. What you can do is lend your stablecoins and obtain a yield, in the same way that you can lend any currency. The yield is provided by the borrower. Second, the expected return on an investment doesn't tell us whether such an investment is better than another. In order to compare investments, we have to look at the risk-adjusted return.
- RhodoGSA 5y agoThe risk-adjusted return is just whether the contract gets hacked or not. You get a yield for providing liquidity. Granted that yield might be 4-7%, but it's not risky in the traditional sense of i could 'Lose' a percentage like i could with stocks. I have confidence that uniswap isn't going to get hacked, but do i ever have confidence a stock is only going to go up?