SGD/USD broke 1.4, what am I doing
But I do, because I do crypto, and we base everything in USD in the crypto world.
I'm not much of a currency speculator, but I do know 2 things:
- there is a risk of SGD depreciating much further against the USD
- I can get much higher returns on cash with "USD" than SGD
I'll be reviewing my cash balances and probably moving a large chunk of it into USD stablecoins.
There's plenty of opportunities (with risks), at least from my perspective.
Obviously, BlockFi with 8.6% is a massive top choice that I will funnel a lot of "USD" to.
I'm probably going to put some in Celsius as well, since they are now compounding. They have a lower rate though, 7.51%, but it's slightly comforting to spread your eggs around different baskets. Better for liquidity too, in case you need liquidity urgently and one of them is unable to process your withdrawal for whatever reason.
Then of course, there are the defi options (which obviously, I am crypto-native enough to farm).
There's USDC with Opyn insurance to get you 3.21% with practically zero risks outside of custodial risks.
MKR's DSR yields 7.5% and you can take out a year's worth of smart contract insurance for 1.3%, so net 6.2% to remove technical risk and only assume economic risk. Or you can go raw and earn 7.5% flat.
There's iearn yDAI tokens that are now earning ~11.5%. They can also be insured for a year for 1.3%, so net ~10.2%.
There's even a newer (more riskier) service that takes yDAI tokens and puts them in a liquidity pool to earn liquidity fees. You know what's the APR? Freaking 23% on "USD".
Traditional finance people be searching the traditional world looking for RISKY 8-12% annualized opportunities, but in the crypto world, 8% has almost become the "risk-free" rate, while the high risk rate for "USD" alone is pushing above 20%. Don't even need to talk about the non-stable options, obviously they are massively higher.
Anyway, there's a lot of opportunities. But there are also a lot of risks. One of the defi lending platforms got attacked twice this week and lost almost $1M USD of funds. Their liquidity is now drained. They are offering 12.7%, but is the risk of illiquidity + socialized losses worth it? Probably not.
I'd say that most people have absolutely zero business searching for boosted and souped up yield through crypto-native defi platforms. They are not only ill-equipped to be making crypto transactions, but completely worthless at assessing the risks of the entire set-up.
Stick to the custodial options. BlockFi has the best rates and I have already tried it out and make sure that it works, so you're welcome. (still go and do your own diligence, you lazy shit)
Personally though, since the BULK of my net worth is in crypto and I track it in USD, I'm not really that affected by FX. However, I still do have SGD and things look more likely to get worse than better (from my perspective), so I think it's still going to be worth it for me to move over more low yielding SGD to sit in massively high yielding USD. I get to earn the yield pick up, plus maybe even profit madly from the FX shift.
If I can sink in $500,000 into BlockFi, I can yield ~$3500 a month.... ehehe.... ANYWAY that's just what I plan to be doing.
I hope you guys are having an interesting 2020 as well, the economy looks like it's gonna go to shitz!