This Is How I Get 12% APR On Stablecoins (And How You Can Too)
What is going on read.cash people. In an article that I wrote a few weeks ago I gave away a hint that I am getting 12% APR on my DAI savings account. Oh yeah baby, 12%. This article will tell you everything you need to know about how you can get top notch interest rates like this for your stablecoins too.
EDIT: While I was researching/writing this article I came across some bad news. You will not be able to use the services that I discuss in this article if you are a citizen of the following countries: USA, Bangladesh, China, Iraq, Pakistan, Crimea, Cuba, Iran, North Korea, Sudan, Syria. I am very sorry to those individuals who are not allowed to use this service, yall should just stop reading this right now or the FOMO might get you. Again, I am sorry to all of the people who were looking forward to this article who can no longer benefit from this information just because of the country they live in. The maple syrup Tim Horton's hockey Igloos of Canada are looking better and better eh?
Introduction
Cryptocurrency is amazing. Stablecoins are also pretty awesome. What makes them awesome? Well the fact that you have dozens of different de-fi protocols to be able to put your stablecoins to work is what makes them awesome. Personally, I keep as little money in my "Finance 1.0" bank account as I can. The rest goes immediately over to my DAI savings account because that way I can earn a weekly compounded 12% APR. If that doesn't get your juices flowing then go see your doctor and ask about the "little blue pills." No we're not talking about The Matrix, and yes ladies yall can also benefit from those pills. Don't ask me how I know because this is a crypto article dammit!
Details
Well I won't keep you beautiful people waiting any longer.
The place for 12% APR on stablecoins is YouHodler.
Right now they offer 12% APR on the following stablecoins: DAI, USDT, USDC, PAX, TUSD, and HUSD.
Just for the sake of information, YouHodler also has savings accounts for a variety of cryptocurrencies as well and the rates for those coins ranges between 3% - 4.8% APR. Those coins are the following: BTC, ETH, LINK, XRP, XLM, BNB, HT, and PAXG. PAXG gets 8.2% APR but the rest fall between the previously mentioned percentage range.
YouHodler is an active member of the Blockchain Association and the Crypto Valley Association in Switzerland. They also have probably the most extensive terms and conditions documentation I've ever encountered in the cryptocurrency space meaning they actually care about legal compliance.
Too Good To Be True?
I know I know, it sounds too good to be true. I thought the same thing and I cannot tell you how many times I messaged their support team asking for specific information with regards to their interest rates, and the other services that they offer (which might be the topic for another article in the future). But golly gee willikers it's true! Not only is their support team incredibly fast at responding to messages, but quite often I message them around 1AM and they'll still hit me back within 5 minutes almost every single time. That right there is a bonus and a huge sign of confidence in my books.
I have been using YouHodler for over three months now and shit am I glad I found it. The interest rate of their savings accounts alone is enough to write home about. And that's fucking exactly what I'm doing now. Hi Mom. Don't read that part about the Viagra that I mentioned up at the top. I swear to God those were just diamond shaped tic tacs.
Here is a screenshot that I took showing some of my transactions and a successful withdrawal which you can also see here. So yes, this is proof that I have successfully withdrawn funds from my YouHodler account = legit af.
How Can They Offer Such Great Rates?
Good fucking question prophetic article-writing me from the past. As I was writing this article I messaged their support with this exact question and I got my answer all said and done in less then 3 minutes. So let me quote the exact answer that I received because it tells the story much better than I could.
"The reason, why we can provide such Savings Account interest is our loan/savings model. We use Savings assets as a part of our own liquidity pool to provide loans. At the same time, the profit from loans is allowed to refresh the liquidity pool as well. So the balance between these two products allows us to have the terms that you can see in our platform."
As a result of this structure, the YouHodler savings account interest rate doesn't fluctuate due to the liquidity of their lending pool like other defi options. What does this mean? More stable interest rates.
This chart can be found on their website here.
Process
Alright so now that we know what this heavenly service is, what they offer, and how they can offer the rates that they do; now we need to know how to advantage of it. As a typical crypto service it takes a day or two to have your KYC verified and then you can deposit funds into your account quite easily. You can directly send fiat into your YouHodler account via Wire Transfer, or you can send any of the aforementioned crypto coins/tokens or stablecoins. I have only ever deposited BTC, LINK, and DAI and no deposit has taken any longer than you would expect. On MetaMask for example, after the transaction has been sent and verified it takes less than 2-3 minutes to appear in your YouHodler wallet.
After you have sent some funds into your account, you then transfer the desired amount into your Savings account which does not have any sort of transfer fees and happens instantly. At this point I should mention that there are minimum amounts for the Savings Accounts and here is where you can find that information.
Once the funds have been deposited into your savings account you will instantly start receiving your interest. Interest pays out once every 7 days, and it automatically goes back into your savings account to be compounded with your initial balance. God damn isn't that just amazing. What a time to be alive. You can choose to withdraw your interest payments if you wish as well. More information about this can be found at the link above.
Conclusion
Again to my American brethren and all of those in the countries excluded from this platform, I am sorry. But in my defense, I did warn you about the FOMO at the beginning right? But for the rest of you if you're still reading this, yes you too Mom, this is where the article comes to an end. When everything is said and done YouHodler is one of my favourite platforms. Hands down. It is super easy to use and navigate, their support team is incredibly quick, reliable, and friendly and the interest rates are simply unmatched anywhere else in the crypto space.
Like I mentioned, I have been using YouHodler for a while now and I could not be more stoked with what they have to offer. Right now the majority of my "cash" position is in my DAI Savings Account collecting a compounding interest rate of 12% APR. In all honesty, I'm pretty sure Warren Buffet would get a boner from reading that last sentence right there. Even without the help of my tic tacs.
I hope that you all have appreciated this article and that you can benefit in some way from the energy that I put into writing this. I am super fucking stoked on YouHodler and I just want to share that awesomeness with other people.
If you found this helpful please help others find the article too by pressing the like button and maybe even commenting! That kind of stuff helps the algorithm so it reaches more people. This is not financial advice, always do your own research, and never invest more than you're willing to lose. This article will also be published to Publish0x and Uptrennd.
*Affiliate Disclosure: This article includes referral links for signing up to YouHodler that will not cost you anything but will give me with $10 for every person who successfully signs up and passes KYC verification as my reward for being the person who introduced you to the platform. And you bet your ass that $10 will go into crypto.*
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