I personally believe that every cryptocurrency investor should hold a portion, if not most, of their position in BTC. However, while BTC steadily builds wealth, it has a downside: there are almost no reliable income-generating methods.
One day, I suddenly found that the fixed deposit of G tokens in Binance's regular financial products could actually reach an annual return of 30% for three months. However, I do not want to hold G at all, yet I want to enjoy G's annual yield, what should I do?
I looked at the staking loan for G, which had an annual interest rate of around 10%, so I staked BTC, borrowed G, and then deposited G into a three-month fixed deposit.
To prevent a sudden surge in G causing forced liquidation of my BTC stake, my staking ratio is basically around 60%.
Even so, BTC is basically equivalent to an annual return of over 10%.
I have operated with G, Not, and other tokens, and currently, I have safely exited from all of them.
Interest rate arbitrage looks so beautiful in a volatile or bear market. Now let's talk about the pitfalls.
At the beginning of Astr, the four-month fixed deposit had an annual rate of 19.8%, while the interest for regular loans was only an annual rate of 8%.
I didn't expect that after about a month, Binance adjusted the interest on Astr's fixed deposit to 12.8%, and after a while, it was directly adjusted to an annual rate of 8%.
Those with traditional financial experience know that a fixed deposit is one where both the time and interest are fixed.
I didn't expect that Binance's fixed deposits only have fixed time, while the interest can be adjusted at will; it's really a huge pit, and I will never touch Binance's fixed deposit products again.
