Stablecoin Lending — the Most Favorable Interest Rates
The rapid growth in the number of transactions with virtual currency increases the user base and significantly reduces commission payments. However, their volatility is still a serious barrier to making payments with such assets.
Choosing the right stablecoin to make your deposit profitable is necessary, and you should know the best stablecoin staking rates. The solution of such a task cannot be done without a successful choice of a site for lending. We will talk in detail about such services and the most common cryptocurrencies with a constant rate in this article.
The main stablecoins
Stablecoins play an essential role in modern trading operations. First, they are characterized by lower volatility than traditional cryptocurrencies, as they are backed by fiat money. The stable exchange rate of stablecoins allows business participants to use them for the most critical transactions. We offer you a list of the most popular types of such currency below.
USDT
Today, Tezer currency is considered the best option for investment. USDT is characterized by low volatility and allows you to safeguard assets and conduct transactions without hampering disruptions and negative circumstances.
USD Coin
It makes any crypto transactions more efficient while eliminating volatility-related costs. Together with Tether, it is the equivalent of American dollars. At the moment, USDC is effectively backed by this fiat currency.
BUSD
It is one of the most common ERC-20 tokens created on the Ethereum platform. The leading cryptocurrency exchange, Binance, actively uses it. Owners of such assets can buy them for any fiat or virtual funds, avoiding commissions. This type of stablecoin is used for various transactions with crypto-assets supported by the Binance platform.
USDP
It is another Ethereum stablecoin formed with fiat funds. Its creator is Paxos, a financial management company in the United States. The currency becomes liquid only from the moment $ is transferred to Paxos. The platform actively interacts with PayPal, providing a powerful market influence.
DAI
It is a currency recommended by MakerDAO. A constant exchange rate and decentralization distinguish it. The coin is not backed by fiat money but is analogous to USDC and Ether provided by the MakerDAO platform.
The most reliable lending platforms that support stablecoins
When the coin for investment is chosen, you should consider a suitable online resource. Let’s cite a few of the most well-known, widely used platforms:
1. Nexo — includes a variety of tokens and matching APYs. The clients of this system can take advantage of the best cryptocurrency lending rules. There are enough options for making profitable transactions of buying or selling assets. The advantages of the service include small interest rates compared to blocked funds. At the same time, participants of transactions can withdraw currency at a flexible rate without commissions.
2. Aave – supports the DeFi liquidity algorithm, which implies the possibility of borrowing in virtual currency or stablecoins. Aave supports short-term loans with fixed interest, unsecured term loans, and traditional cryptocurrency loans.
3. Compound is another DeFi liquidity protocol that expands investment options. It offers a sufficient selection of stablecoins and crypto coins and the ability to buy or sell them.
4. Vesper is another essential tool for enterprising investors. The platform allows its clients to earn interest from using common virtual coins or stablecoins.
You can use different currency pairs to earn lucrative interest on your trades.
Why do you need stablecoins
It is a form of virtual money whose price is linked to a currency unit with a constant exchange rate. The link to the main asset ensures minimal variability in the value of a stablecoin. In addition, such money can fully replace any common current fiat money.
Although stablecoins almost completely correspond to U.S. dollars at the current exchange rate, this does not mean there are no interest rates. The difference can often reach 9-13%, far from the limit.
Investing in such assets, in general, cannot be considered a safe operation that guarantees the desired result. Stablecoins are not always subject to reliable management, which does not fully ensure the safety of invested funds and their safety in case of default.
Conclusions
Stablecoins are the most profitable and safe solution for those wishing to invest in crypto-assets but avoid possible volatility-related losses. It is necessary to consider the different types of stablecoins and the platforms designed for their profitable turnover to carry out such transactions successfully.
StakingY.com – the best platform for active investors
The StakingY.com platform is a competitive, in-demand service for those who want to invest their funds in a reliable cryptocurrency. The most favorable and profitable bets on cryptocurrency assets are offered on a convenient, informative website. Take advantage of the optimal rate to make a successful deal to buy or sell the most common tokens today! The service offers business participants the most up-to-date and verified information about the maximum APY and acceptable rates on the most popular stablecoins.