It is generally accepted that staking and earning interest paid in stablecoin alleviates risks of what is called “impermanent loss.” I have seen many DeFi platforms attempt to offer stablecoin staking, but the best returns I have seen so far are in Nexo. In this article, I’ll explain how I came to decide that and compare returns on example platforms.
To fully understand the benefit of stablecoin staking, we must first understand why anyone would ‘settle’ for lower returns compared to some other platforms.
In this article, I will discuss:
- What is Impermanent Loss?
- Example of stablecoin staking platform — Terra Station
- Example of stablecoin intrest earning platform — Nexo
- Comparison and Conclusions
Author’s Disclaimer: This is not trade or financial advice. All trading and investing, whether real estate, stocks, or crypto, involves the risk of loss, sometimes greater than 100% loss. Do not trade or invest with funds you are not willing to lose. Please do your own research.
Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
