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You can make 8% or so with USDC on a platform like Nexo, that’s what I do now. There’s more risk because it’s not FDIC insured but the rates are too attractive
by jrsj 5y ago
You can make 8% or so with USDC on a platform like Nexo, that’s what I do now. There’s more risk because it’s not FDIC insured but the rates are too attractive for me not to take advantage of it.
- tempestn 5y agoNot just not insured - presumably that rate is compensating you for actual credit risk.
- jrsj 5y agoLoans are all collateralized at least
- aidenn0 5y agoNon-insured returns of around 8% are available in other places too...
- vineyardmike 5y agoAre you not worried about dealing with the complex tax implications of this? I’ve been eyeing it but the legal uncertainty about this product and the corresponding headache of taxes hold me off.
- jrsj 5y agoTaxes arent that bad, it’s only considered a capital gain when you sell or exchange. So not really any worse than crypto generally although potentially annoying if you don’t keep it in mind. As for the legality, I don’t think there’s much risk of them being declared illegal or anything. Eventually the space will be more regulated etc and most likely yields will decline but it’s still better than you’re going to get in a money market account or with bonds or something like that
- vineyardmike 5y agoI meant the taxes from dealing with usdc et Al. If it’s a security, then any trade of usdc for another coin is a taxable event, and all “interest” payments are… what? Not sure if that’s just considering income like mining or what.