How does a 9.3% savings account sound?

[CordMcNally]

Well, it's 3% of my overall asset allocation... so to answer your question, no - it won't make much of a difference in my overall plan. But with interest rates the way they are right now, I like the idea of having a place to park money in and have it earn some substantial interest with minimal risk. Right now, it's low numbers in terms of money. But I'm in my 30s, plenty of time for those $50 a month to grow, and crypto is obviously still in early phases. If it hits it big, great for me. If not, not a problem, since my favorite 5 letters are VTSAX.

Gotcha. I, too, am less than <5% in crypto. Not really enough to make a difference but it’s at least some exposure.

[The White Coat Investor]

Ponzi's are fine as long as you get in and out early.

No they're not. They're illegal. Early investors generally end up paying most of their "profits" back in as it all gets sorted out by authorities.

[CordMcNally]

No they're not. They're illegal. Early investors generally end up paying most of their "profits" back in as it all gets sorted out by authorities.

I guess I forgot the '/sarcasm'.

[Foster]

Surprised there hasn't been more talk about UST (not USDT) and the 19% on Anchor Protocol. Low risk (for crypto) stable coin, 19.4% yield, auto compounding. No brainer.

Lots of other options to farm LP pairs of stables and make even more, but the main risks of Anchor are hack, de-peg, or yield dropping down to say 12% b/c the reserves are used up too fast. You can buy insurance for hack/de-peg risk if you really want it.

[xraygoggles]

Surprised there hasn't been more talk about UST (not USDT) and the 19% on Anchor Protocol. Low risk (for crypto) stable coin, 19.4% yield, auto compounding. No brainer.

Lots of other options to farm LP pairs of stables and make even more, but the main risks of Anchor are hack, de-peg, or yield dropping down to say 12% b/c the reserves are used up too fast. You can buy insurance for hack/de-peg risk if you really want it.

Not sure about that.

[CordMcNally]

19.4% and low risk, even with the crypto caveat, makes no sense.

[xraygoggles]

Surprisingly, Anchor still offers yields of 19.51% annualized - very juicy, but ofc not without risks.

GUSD has slightly decreased from its peak, but still very respectable at 6.9%

[zlandar]

Surprised there hasn't been more talk about UST (not USDT) and the 19% on Anchor Protocol. Low risk (for crypto) stable coin, 19.4% yield, auto compounding. No brainer.

Lots of other options to farm LP pairs of stables and make even more, but the main risks of Anchor are hack, de-peg, or yield dropping down to say 12% b/c the reserves are used up too fast. You can buy insurance for hack/de-peg risk if you really want it.

It doesn't seem low risk to me...

"Investors Flee Terra’s Anchor as UST Stablecoin Repeatedly Loses $1 Peg"

https://www.yahoo.com/now/investors-flee-terra-anchor-ust-203543470.html

[jacoavlu]

It doesn't seem low risk to me...

"Investors Flee Terra’s Anchor as UST Stablecoin Repeatedly Loses $1 Peg"

https://www.yahoo.com/now/investors-flee-terra-anchor-ust-203543470.html

not following this story closely but to be clear the UST ponzi is a different thing than what this thread was started about

[xraygoggles]

It doesn't seem low risk to me...

"Investors Flee Terra’s Anchor as UST Stablecoin Repeatedly Loses $1 Peg"

https://www.yahoo.com/now/investors-flee-terra-anchor-ust-203543470.html

This is an algorithmic stablecoin - backed by a literal Ponzi scheme. Completely different than regular stablecoins.

USD-backed stablecoins (GUSD, USDC, USDP) are the safest, because each dollar of stablecoin is backed by literal US dollar in their Treasury. Tether (USDT) may be safe, but holds some commercial paper along with dollars in their reserve.

[xraygoggles]

Surprisingly, Anchor still offers yields of 19.51% annualized - very juicy, but ofc not without risks.

Risks being, of course, that it could implode into a self-perpetuating death spiral to zero, as it seems to be doing at this moment.

[CordMcNally]

Tether (USDT) may be safe, but holds some commercial paper along with dollars in their reserve.

Ha!

[jacoavlu]

tether! it’s scary! i’ve read bad things about it!

[zlandar]

This is an algorithmic stablecoin - backed by a literal Ponzi scheme. Completely different than regular stablecoins.

USD-backed stablecoins (GUSD, USDC, USDP) are the safest, because each dollar of stablecoin is backed by literal US dollar in their Treasury. Tether (USDT) may be safe, but holds some commercial paper along with dollars in their reserve.

https://www.investopedia.com/articles/economics/09/money-market-reserve-fund-meltdown.asp

“The Reserve Primary Fund only held 1.5% of its assets in Lehman commercial paper, yet, investors expressed fears of the fund's other holdings.

The fund was unable to meet redemption requests and was forced to suspend operations and liquidate.”

[Jaqen Haghar MD]

Here’s a serious question…. How are these 8-10% yield crypto savings accounts working out these days? I’m just curious how this worked out for everyone involved.