Staking stablecoins better than stocks/etfs?
On Binance Earn, there is the option to stake USDT at 10% APY. The stake is flexible as well, so you could take out your USDT at any time.
My question is, why would anyone invest in say, the S&P500 if the APY for it is on average 7%?
Wouldn’t it make more sense to stake in a stable coin and collect a guaranteed 10% each year? Or is there something I’m missing?
Because that is only true for the first 500BUSD
Last year the S&P500 did significantly better than 7%. But yes, earning interest on stablecoins is a good way to earn yield.
Lots of people don’t know about it yet though, and if more people would get into it, the yield is likely to go down.
You can get better rates for stablecoins than 7% by the way! If you want to compare, check out [this stablecoin interest rate comparison table](https://extracrypto.cc/interest-rates/all-stablecoins/).
You’re not missing anything. And this can be replicated to hundreds of different platforms both centralized and decentralised. Can provide examples to anyone interested.