Informed Crypto News
DeFi yields exceed 60% APY on bitcoin with insane risks
Headline, DeFi yields exceed 60% APY on Bitcoin with insane risks, published at 11.45 AM UTC, October 8, 2024 on protos.com. The crypto bull market is back, and with it advertisements for ultra high yield opportunities to lure Bitcoin from investors' wallets. Unsurprisingly, centralized offerings and nascent DeFi projects are bull market sizing their annual percentage yields. APYs. ZeroLend, for example, an experimental decentralized finance DeFi platform offers an irresponsible 61% APR denominated in a Bitcoin branded token called Lombard BTC. This token is currently worth approximately the same as Bitcoin. It's important to note that Bitcoin itself, which is not proof of stake, POS, offers no native yield. Nevertheless, by introducing risks like proprietary trading or lending customers deposits, centralized services like M2, WireX, or Coinhold raise that passive rate to 8%. Earnpark doubles the rate to 15%. Bitcoin APYs cannot be compared to fiat benchmarks like the US prime rate of 8%, and unlike POS assets like ETH or SOL, holding BTC does not yield passive BTC. For speculators looking for APYs above 15%, less conventional offerings are available for even more degenerate yields on Bitcoin. Subheading looping up yields through Bitcoin-themed DeFi. By daisy-chaining a series of protocols including Ethereum, ZeroLend, Lombard, Contango, and Babylon, Bitcoin investors can earn outsized returns if everything goes according to plan. Unlike the US dollars 4.53% risk-free interest rate, BTC has no risk-free interest rate. Nevertheless, conventional custodians and DeFi platforms are dangling APRs and APYs starting in the high single digits and reaching into the high double digits for Bitcoin speculators. With history as a guide, recalling Celsius, Voyager, Gemini, Earn, and other disasters, investors should remember that high-yield Bitcoin advertisements often have grave risks of total loss. This recording was AI-generated. Get more crypto news at Protos.com.