CeFi | Passive Lending Rates Compared

in LeoFinance2 months ago

Crypto Lending Platforms are a convenient way for people the receive some passive earnings on their crypto earnings. The combination of crypto price growth and these platforms becoming more popular made it inevitable that the rates are going down. This is a comparison between what different platforms are offering.

There 4 platforms that are considered the biggest which I'm also using myself are (BlockFi | Celsius | Nexo | Crypto.com). Some of them give better rates for users that hold or stake their own coin, others have better rates for smaller deposits or require the funds to be locked up. In this comparison, I go with rates for smaller users without the platform coin to be held not looking at if coins need to be locked for a certain time and I stick to the bigger crypto.

USD Tether9,30%10,00%8,00%10,00%
Bitcoin (BTC)5,00%3,51%4,00%4,50%
Ethereum (ETH)4.50% 5,05%4,00%4,50%
Litecoin (LTC)5,50%4,08%4,00%2,00%
Chainlink (LINK)4.50%3.00%4,00%2,00%
EOS (EOS)-4,45%4,00%2,00%
Bitcoin Cash (BCH)-4,51%4,00%2,00%
Ripple (XRP)-2.50%4.00%2.00%
Stellar (XLM)-3,10%4.00%2.00%
OmiseGO (OMG)-3,11%-2.00%
Polkadot (DOT)-8.86%-2.00%
Basic Atention Token (BAT)-3.51% -2.00%
Kyber Network (KNC)-2,53% -2.00%
Decentraland (MANA)-2.02%-2.00%
Compound (COMP)-4.60%-2.00%
Bancor (BNT)-5.50%-2.00%
Binance Coin (BNB)-- 4,00%2,00%
Aave (AAVE))-5.92%--
Dash (DASH)-5,50%--
Polygon (MATIC)-13.99%--
Synthetix Network Token (SNT)-13.99%--
Uma (UMA)-4.51%--
Uniswap (UNI)-2,50%--
0x (ZRX)-3,51%--
Bitcoin SV (BSV)-4,51%--
Zcash (ZEC)-2.02%--
Celsius (CEL)-4.86%--
TRON (TRX)--4,00%-
Maker (MKR)---2.00%
Crypto.com (CRO)---6,00%
ICON (ICX)---2,00%
Cardano (ADA)---2,00%
Tezos (XTZ)---2,00%
Cosmos (ATOM)---2,00%
VeChain (VET)---2,00%
Elrond (EGLD)---2,00%
Algorand (ALGO)---2,00%
Celer (CELR)---2,00%
Enjin Coin (ENJ)---2,00%

Using different platforms allows both to shop for the best rates while also spreading the risk around. Even though they are all well regulated and insured, they remain centralized companies so you never really know. Binance is also an option where many coins can be staked.

BlockFi: Very clean and straightforward, payments are done on a monthly basis and they have a 10$ bonus for anyone that signs up with a referral link (Feel free to use mine or that of a friend who already has an account). Their rates are still good but they have been cut a couple of times in the past month and are much better for smaller accounts <0.5 BTC <15 ETH. They also offer 1 free withdrawal each month where they pay the transaction fees. They also allow trading on their platform which is very convenient to get in-and-out of crypto while always getting a return on your holdings on their platform.

Celsius: They offer a lot of altcoins and give competitive rates. They also have their own CEL token which can be selected to receive payouts at often increased rates. Payments are done on a weekly basis and compound. I'm not sure if they still offer a sign-up bonus but if they do it's likely to best use a referral link. It is only available to log in with their mobile app.

Nexo: They are pretty straight forward offering 4% which daily compounds on most coins. They also have their own coin which gives better rates when holding it. They do offer referral links but no sign-up bonuses for as far as I can see.

Crypto.com: They require coins to be locked up for a period of 3 months to get the best rates but also offer flexible staking. They are an all-in-one platform that also offers an exchange and pre-paid visa card on which a 25$ sign-up offer is given to those that use a referral link (code: e7xe283zea).

Binance: They offer lots of functions to earn by staking or locking coins but not everything is always available. Rates tend to be excellent getting 34.49% APY on SOL (15-day stake) 21.49% on ONG, 47.79% on 1INCH, and many more. To get a 10% cashback on trading fees use my Referral Link

That's it, I'm always looking for more ways to earn some passive income on my crypto holdings so feel free to let me know in the comments below if there is another platform that you are using (Feel Free to share your link). For a more detailed overview of crypto passive earnings, check Passive Crypto Earnings March 2020 (Lending/Dividends/Staking)

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Interesting, for someone like me who spends most time in decentralized platforms, these rates are awfully low, it makes me think,eventually when the world is more aware of these decentralized alternatives, will the insane APR’s we get there also reduce to these rates offered on Centralized platforms? Because I know that more people on a pool, the lesser the APR’s

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Due to yield farming, the rates of APR are artificially higher. In theory though the more people join and then sell the yield coins, rates will come down. Due to the bull market type area, the yields will be high until it cools down as coins get pumped and due to this coin being "new money" paper value it increases.
One could say much lending is speculative in the DeFi which is both good and bad you know.
Centralized ones lend to more centralized trusted such as miners,short traders, and etc. Rates are thus lower.

I like the fact that the returns from the CeFi lending platforms are based on the actual revenue they manage to make. A lot of the DeFi stuff feels like it is fueled purely by hype and it has been not that easy to get into unless you work with really high amounts due to Ethereum Gas fees. It will be interesting to see where it all goes once the bull market cools down again. It's inevitable for rates to come down as more people start using both CeFi and DeFi. It have been golden times this past year getting good returns while prices of coins themselves also have gone up a lot.

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Another way I think about is that because of how cryptos can be gamified, it makes the system flexible enough to accomodate such high yields for a long time if done right, it’s all based on algorithms, yields are calculated in APR’s but the APR is measured in terms of the number of tokens issued, not value of token. So if the tokenomics of the token is for some reason superb, then the ApR might just be sustainable, perhaps I’m wrong

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