![]() ![]() Cons of CeFi GUSD lending Custodial lending With stable and predictable interest rates on your tokens, you can better calculate how much you’re earning. Assuming that those interest rates don’t vary wildly, they can be higher (and more stable) than DeFi GUSD lending platform rates. Higher ratesĪs of mid-August, Gemini advertises 7.91% APY on GUSD lending. These rewards accumulate in your account and you can redeem them or allocate them to lending to boost your earnings potential. If you deposit GUSD into an Earn account on a Thursday morning, you’ll get your first payout of rewards at 4 p.m. EST the following business day funds are moved to an Earn account on Gemini. Payouts for GUSD lending rewards are every day at 4 p.m. It’s relatively simple, and Gemini’s sleek user interface makes each action easy to understand Daily payouts Once you sign up with Gemini and purchase Gemini Dollar, you can create an Earn account and allocate how much you want to deposit for lending. If you’re new to the crypto lending space, but want to make a little passive income with relatively little upfront investment, CeFi GUSD lending is an easy first place to start. Pros of CeFi GUSD lending Easy for beginners Custodial lending, so you don’t have control of your tokens.When you want to redeem your GUSD rewards on Gemini, you can redeem some or all of your earnings in a process that takes up to five business days, and the balance is moved from your earning account to your trading account where you can trade or withdraw. EST and add to your loan balance so your rewards are compounded. On Gemini, the rewards are paid out every day at 4 p.m. ![]() When you lend out your GUSD on CeFi platforms like Gemini, you typically deposit the tokens into an earning account on the platform, and your earnings are paid out back into that account. Gemini allows users to lend their GUSD for advertised rates of around 7%, which is high compared to other tokens. ![]() Since GUSD is Gemini’s native token, it makes sense that the Gemini exchange is often the first destination to exchange fiat currency for GUSD. The easiest way to get started with GUSD lending is to go to a centralized exchange. These rewards either accumulate an account or are paid directly into a wallet, depending on the platform and if it’s DeFi or CeFi. While the borrowers are using their loans, the lenders are paid yields as a reward for making their funds available for lending. Then, borrowers can request funds and your deposit helps fund that loan. When you deposit GUSD for lending, it’s either deposited to a CeFi exchange account in your name or into a supply pool on a DeFi lending protocol. Some lending platforms have requirements for minimum amounts and minimum term lengths to get the best returns on your GUSD, while others do not. Rather, you deposit funds into an account that is available for the platform to lend to borrowers on your behalf or a pool with other investors from which users borrow. You’re not necessarily matched with a borrower who you directly lend to. Lending GUSD works similarly to traditional peer-to-peer lending platforms like Prosper or Lending Club. Similar to peer-to-peer loans in traditional finance, GUSD lending isn’t lending your tokens out directly to a borrower, it’s supplying the tokens to a pool with other investors for borrowers to lend from. It is always pegged to the price of the U.S. GUSD, in this case, stands for Gemini Dollar, and it is a stablecoin designed for easy exchange. GUSD lending is straightforward: you’re taking the GUSD you have and lending it out in exchange for interest earned on the token. It is native to the Ethereum blockchain, allowing it to remain a compelling option for DeFi enthusiasts. For starters, it’s an ERC-20 token already set up for smart contracts. GUSD is Gemini’s answer to the stablecoin game, with a few twists. The only question is when it will take effect. In fact, stablecoins have taken off so much that Congress is definitely keeping a close eye on things additional oversight for stablecoins is on the horizon. It’s something that people can understand and use for their benefit. Stablecoins are the next big talking point in crypto. GUSD Lending Interest Rates: Gemini Dollar Lending Platforms
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