03-26-2022, 04:22 PM
Yields have been coming down on stablecoins and everyone is mad at it, but the expla
<!-- SC_OFF --><div class="md"><p>Returns on stablecoins have been coming down for a while from simple crypto.com to the most complex yield farming strategy you can come across. </p> <p>It’s a pain and everyone complains about it! I also do! </p> <p>But if we bother to go down the rabbit hole, the explanation is quite simple: the market gets a bit depressed, the demand for stable coins raise, the rewards for holding them lows (the yields) because more people rather be on stables/cash other than be invested, so then need a smaller reward to do so.</p> <p>If you look into other platforms the same happen, even if you look into LP mining in stablecoins it’s the same.</p> <p>Plus!!! The greater the bank integration is, the close defi and regular banking yields are.</p> <p>I believe it’s better to enjoy now, while the party is still going, because of regulations come in and defi gets closer to banking the premium will be pretty small!</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/CartographerWorth649"> /u/CartographerWorth649 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tolthw/yields_have_been_coming_down_on_stablecoins_and/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tolthw/yields_have_been_coming_down_on_stablecoins_and/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Returns on stablecoins have been coming down for a while from simple crypto.com to the most complex yield farming strategy you can come across. </p> <p>It’s a pain and everyone complains about it! I also do! </p> <p>But if we bother to go down the rabbit hole, the explanation is quite simple: the market gets a bit depressed, the demand for stable coins raise, the rewards for holding them lows (the yields) because more people rather be on stables/cash other than be invested, so then need a smaller reward to do so.</p> <p>If you look into other platforms the same happen, even if you look into LP mining in stablecoins it’s the same.</p> <p>Plus!!! The greater the bank integration is, the close defi and regular banking yields are.</p> <p>I believe it’s better to enjoy now, while the party is still going, because of regulations come in and defi gets closer to banking the premium will be pretty small!</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/CartographerWorth649"> /u/CartographerWorth649 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tolthw/yields_have_been_coming_down_on_stablecoins_and/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/tolthw/yields_have_been_coming_down_on_stablecoins_and/">[comments]</a></span>Kind Regards R