Anyone having experience with crypto lending platforms like blockfi?

[RMA]

Blockfi is currently offering 5% APY on BTC (upto 0.5 BTC) and 4.5% on ETH (upto 15 ETH).

Here are the risks - https://help.blockfi.com/hc/en-us/artic ... t-BlockFi-

Digital currency is not legal tender, is not backed by any government, and the BlockFi Interest Account is not a bank account nor a brokerage account, and is not subject to FDIC, SIPC, or other similar protections. Interest rates, withdrawal limits, and fees are subject to change and are largely dictated by market conditions. This is not a risk-free product and loss of principal is possible.

I am currently not interested because of the risks, however if anyone is using them then I would like to know their experience? Do they even allow Japanese residents?

Any other safer alternatives to blockfi?

[RMA]

Bitbank Japan lending rates are negligible as expected:

[RMA]

In Binance there are a few options.

Lending rates are low but staking rates can be very high. Even if annual does not mean much since you can stake at most 90 days and no guarantee that when you roll rates will still be high. My understanding also is once you stake you cannot sell the coin till maturity. So there is risk you can miss a pump.

Issue on staking in Binance is limited choice of coins.

I checked Binance, there lending rate for BTC and ETH is too low. I don't hodl any other coin except these 2 so staking is not for me. But the staking rewards are pretty good for those who believe in these projects.

[mighty58]

In my opinion the low rates are indicative that defi could function as legit financing platform in the future, but as an investor, the returns are way too low to justify the risks, which of course include the opportunity costs of being locked in on something as volatile as crypto. If we were seeing, say, 20% annual returns, I might even dip my toe in to the waters, just as an experiment, but at the same time I'd be a lot more skeptical about defi's long-term future.

[AreTheyTheLemmings?]

Digital currency is not legal tender, is not backed by any government

Timely!
El Salvador makes bitcoin legal tender

[RMA]

Digital currency is not legal tender, is not backed by any government

Timely!
El Salvador makes bitcoin legal tender

It was inevitable. More will follow sooner or later.

I just copied pasted the text from blockfi website. They should change this quote now.

[RMA]

In my opinion the low rates are indicative that defi could function as legit financing platform in the future, but as an investor, the returns are way too low to justify the risks, which of course include the opportunity costs of being locked in on something as volatile as crypto. If we were seeing, say, 20% annual returns, I might even dip my toe in to the waters, just as an experiment, but at the same time I'd be a lot more skeptical about defi's long-term future.

I don't feel blockfi lending rates are too low. They give 5% on bitcoin and 4.5% on ethereum which is not bad at all for those who want to hodl these coins anyway for long term. The downside is the risk of losing your coins. At the moment, blockfi seems legit but I would rather wait for some more time before trusting them.