Let's talk about the hot GMT staking in the square today.
Based on the current staking amount, from now until the end of the staking period, the return on principal is about 58%.
I see many people posting about it, but in reality, this return is calculated daily based on the staking volume, meaning that as long as the staking volume continues to increase, the returns will decrease. Given the current growth rate, community sentiment, and staking returns, achieving a principal return of 15-30% by participating in staking until the end would be quite good; this is still a relatively ideal situation.
Moreover, we must also consider the possibility of a price drop. Calculating this way, without hedging, I wouldn't recommend buying coins to stake right now, as it is very likely you won't make a profit and could even incur losses.
If it's a relatively large amount of funds, I think it can be participated in for arbitrage under the condition of hedging.
However, for small to medium-sized funds, it's better to avoid it, because if you only have tens of thousands or a little more, even if you manage to maximize the interest rate by being lucky, the returns would still be minimal. If the market suddenly spikes and you can't manage to secure more margin, even if you safely get through two months, you would still lose two whole months' worth of opportunity cost, which is really not worthwhile.
As for the feasibility of borrowing coins for staking, it still boils down to three points — the fluctuation of borrowing rates, limited returns, and the opportunity cost of having your liquid funds locked during a good market.
In summary, don't be fooled by those chaotic dog barks and shouting orders; this is not some good thing where money falls from the sky or gold bars are handed out in the village.
Many newcomers in the space still don't understand these things well enough, and I hope this post can help those who are tempted to buy coins and participate in staking.
If it still doesn't wake you up, then so be it!
