One thing to point out is that, when crypto/usd rates rise, we might need more liquidity in the stablecoin pools to avoid too much slippage. However, users who deposit Bitcoin can borrow as low as 80 USDT/USDC, whereas Ethereum and Bitcoin Cash users can borrow as little as 30 USDT/USDC. CoinRabbit, like most other crypto lending platforms, does not have a loan cap, which means you can borrow as much as you want as long as you have the necessary collateral to secure the loan. As the global cryptocurrency community grows, more and more coin investors are beginning to actively use crypto lending platforms as part of their daily investment activities.

Hodlnaut Interest Account (HIA) enables users to earn interest on their crypto holdings. Many platforms started offering only the lending service or crypto savings account, where the yield actually comes from lending. Most investors aren’t just buying and selling one asset like in the example above, they have multiple assets of the same kind and potentially hundreds of trades in a year. This is where a cost basis method comes in – it dictates the way you deal with identical assets when calculating gains and losses. Additionally, OKX’s Earn section provided multiple ways to generate passive income, including staking, savings, and liquidity pools. Combined with its strong security protocols, OKX feels like a well-rounded platform for both experienced traders and those just starting out.

Different platforms will have different variations of how users will earn yield. Founded in 2017, OKX is a Seychelles-based exchange, having a global presence in more than 100 countries. Widely acclaimed for its user-intuitive interface, high-end security measures, and broad range of trading options, OKX is equally suitable for new and experienced traders.

We have helped millions of people safely buy cryptocurrencies over the past five years. We made this website to help other Brits buy cryptocurrency safely. If you’re still struggling after reading our guide, contact us here. Has there been any updates on when the extension for LM will be applied to these pools?

The state of crypto’s stablecoin market

Aave is the leader with more than $28 billion borrowed, while smaller players like Morpho and Spark are also growing. Solana even added $1 billion of stablecoin supply in a single week, reflecting how liquidity is moving across multiple chains. Across the broader market, the stablecoin index has climbed nearly 10% in just six weeks, lifting the market cap close to $290 billion.

Risks of yield farming

During the presale phase, there is also a remarkable 311% staking APY (Annual Percentage Yield), presenting an enticing opportunity for early investors. Yield farming also incentivized developers to work on interconnectivity and interoperability of networks and apps. This in the future will create an even larger community of investors and open new opportunities. E.g. if you want to trade with TraderJoeXYZ, Metamask set to Avalanche network will do just fine. But if you want to connect with Compound, you will need to set your wallet to the Ethereum network. Here’s some of our most common questions about cryptocurrencies and the UK.

Tax free crypto UK

Thomas brings extensive experience in financial analysis and investment research. With a strong background in both institutional and retail investment sectors, Thomas ensures all content meets the highest standards of accuracy and relevance. Using the order book or an instant conversion feature, you can directly convert USDT savings your BTC to USDT. The same applies to any other crypto paired with USDT on your exchange of choice. Cryptocurrencies such as USDT and USDC are often listed as paired with BTC and altcoins, e.g BTC/USDT. Submit the contact form below to receive free initial consultation from our qualified tax advisers.

• Matrixport also has several other methods of investing your crypto, including DeFi, Dual Currency, and crypto lending.
• Offering incentives for reviews or asking for them selectively can bias the TrustScore, which goes against our guidelines.
• They’re more akin to transferring your crypto from one place to another because you’re not actually disposing of the asset.
• The AI’s profound comprehension of blockchain technology is pivotal in navigating and safeguarding the crypto landscape.

I personally believe it best to keep rewards structured as they are for stables. With a solution already in the works, it would only be insulting to the current LP’s who have been here from the start, working to grow the network, to implement such a drastic change. I’d even be very much be in favor of a step-down approach like @MikeOwen mentioned. The difference in inflation between a 50% immediate halving and a 15% drop every 4 weeks can’t be that large from a dollar perspective, and I think it introduces a massive risk of capital flight that could be very costly. My personal interests aside, my biggest fear is that this would cause a shock to the stablepools and ruin the protocol’s chance to cement itself as a leader (especially with L2 just around the corner).

In that case, you can benefit from setting your prices in USDT without worrying about price fluctuations in case of devaluation. The loan-to-value (LTV) ratio is the related difference between the loan amount and the current market value of the collateral. The higher the LTV, the more loan funds you will receive, but at the same time, the margin call will be higher. CoinRabbit interest rates have 12% and 16% APR, depending on which loan currency you choose. APR is charged monthly, starting when the loan amount is approved, and you repay APR as soon as you close the loan, meaning there are no monthly repayments.