Where is the Best Yield in Crypto?
10
minute read
August 14, 2024
Tycho Onnasch
Have you ever seen crypto yield in the hundreds of % before? It’s common to see these in newer protocols and yield farming Dapps. But what about the thousands?
Iron Finance, an undercollateralized stablecoin protocol on Binance Smart Chain from 2021, was offering extremely high yields for users that deposited their $TITAN token. They followed a similar playbook to Terra: using the $LUNA token to back their $UST stablecoin.
Unfortunately for Iron Finance investors - it suffered the same fate as Terra, collapsing spectacularly and sending both $TITAN and $IRON, the $TITAN backed stablecoin, to zero.
All the yield and gains earned by these investors was completely wiped out.
In systems like these: yield is paid out by new entrants hoping to cash out before the music stops - a textbook ponzi scheme.
Yes, the yield % is unbelievably high, but in cases like these, it’s unlikely you’ll be able to time the top to cash out all of your gains in time.
Iron Finance’s stablecoin took less than 24 hours to go from its peak to -99%.
Unsustainable yield is not worth the stress. You deserve high yield that’s sustainable, safe, and liquid.
In Zest Protocol’s case, the yield for lenders is paid out by fees collected from degens borrowing against their collateral! It’s a sustainable flywheel that creates a curve that follows market dynamics.
No smoke and mirrors, no token incentives inflating emissions, no shady tokenomics - just real yield paid out in a decentralized, peer-to-peer market!
According to the rekt.news leaderboard - the top 3 exploits in crypto happened to unaudited protocols.
$1.82 billion dollars of investors' money gone with the wind due to contracts that didn’t have any auditing work done on them.
Security of user funds is our #1 priority, and we reflect that through our contracts that have been reviewed by 4 separate crypto auditing companies.
On top of all of these - we have a $100k bug bounty program encouraging white hats to battle-test our protocol.
Have you ever felt the frustration of trying to sell a staked token that has a 21-day unstaking period?
This particular token offers high staking yields as long as you agree to a 3 week unstaking period. In that same amount of time, the token decreased in price by 33%.
The 5% APY earned from staking this token has been completely wiped out from less than a month of price action - do you really want to risk being locked in the unstaking timeout while a drawdown happens?
Thankfully for the Zest Protocol Zesties, they benefit from instant deposits AND withdrawals, no timeouts here. Deposits instantly start earning passive yield with no strings attached!
There’s a lot to consider when looking for the maximum yield you can earn on your crypto assets:
- High yields can be misleading, if you don’t know where the yield is coming from: you are the yield.
- Insecure contracts can be exploited, destroying your capital and gains.
- Unstaking wait times are silent killers - crypto is too volatile to wait for your crypto to be liquid.
Take the zesty route, deposit your $STX, $stSTX, $DIKO, or $USDC today!
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And as usual, stay zesty🍊
