Worth the Protocol Risks staking Stablecoins in DeFi protocols?

My crypto portfolio is currently 50% tokens and 50% stablecoins-

I'm wondering what people feel about stablecoin yield farms such as CEX (Binance) and DeFi (Ethena).

If there were an eg. 10%, or 30% APY yield for staking your stables, would you stake the risk of them collapsing or simply hold the stables in your wallet?

If you're just holding the stables, what would it take to make you want to stake?

I'm personally staking 25% of my stables, still on the fence for the rest.

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Lin Junxian

12 Apr 2024

Where are you staking the 25% of your stables if you don't mind sharing. Each protocol has it's own risks. For example, staking usde to earn 30% apy on ethena might seem too high, but from what I understand of the risks, they have a cap on the supply of usde, which would help in limiting the risk. They use steth as collateral currently which has the highest liquidity. Long story short, if you understand what you are getting yourself in for your stables, you will naturally be more comfortable in staking your stables. Having said that, your risk appetite might be lower for your stables. So maybe depositing dai in spark protocol to savingsdai with about 13% apy might be safe enough for you?

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