Crypto Staking, CDC No Longer a Viable Option for Large Balances

drdamo on 16/04/2022 - 12:27

Changes to crypto.com staking have changed it's viability as an investing platform. Quite disappointing having set up considerable deposits of TAUD.

From their website:

What are the changes?

Users will access rates based on the total value of their Crypto Earn assets allocated to fixed terms (1 Month and 3 Months). Assets allocated to flexible terms will not count toward the fixed-term tier allocation quota.

Tier 1 rates – Full rates are applicable to a quota of USD $30,000 allocated to fixed terms
Tier 2 rates – Fixed-term allocations that exceed USD $30,000 will receive 0.5x the full rewards rate
The new tiered rates are only applicable to allocations placed from the effective date onwards. While the rewards rates for fixed-term allocations that have already been placed remain unchanged, the value of those allocations will count towards the quota of USD $30,000 for enjoying Tier 1 rates.

The indirect consequences of this are that staking CRO at a level to allow the use of the prepaid credit card is less attractive, and the value of CRO is likely to decrease as people work this out.

I've started to look at alternatives for stablecoin staking. I would prefer to stake TAUD just to make tax time calculations easier, but will consider USD stablecoin staking. I would also prefer to have funds in a private defi wallet rather than in an exchange wallet.

Some options:

Celsius - ~8.5% on TAUD

Anchor - ~19% but using their USD token UST.

What are your thoughts? Other options I should consider? Anybody with experience on other defi staking setups? Will anybody be forfeiting their prepaid credit card and unstaking CRO?

Poll Options

  • 9
    Stay with CDC
  • 4
    Celsius
  • 1
    Anchor
  • 11
    Other
Financial

Related Stores

Crypto.com
Crypto.com

Comments

  • onetwothreefour on 16/04/2022 - 12:32
    +9

    Waiting for rekt…

    • Danam on 17/04/2022 - 18:32
      +3

      I just discovered you can hide comments from certain users. There are so few trolls on here it was sad to keep seeing people spammed with awful advice.

    • isthisreallife22 on 15/06/2022 - 20:26

      Celcius answered your call

  • Soluble on 16/04/2022 - 12:34

    I'll be leaving my assets on CDC for now. I've stopped adding TAUD to earn though at the moment.

    As for the card stake it's currently earning 12% so I don't see any reason to drop it.

    • drdamo on 16/04/2022 - 12:43
      +1

      I guess it depends at what price you bought CRO. If your staking balance is at 50k AUD and the price take dives 50% on this news, you'll have to top an extra 25k to maintain the cash back reward. I was very optimistic about CRO price because of their staking rates. Now not sure.

      • wutang01 on 16/04/2022 - 14:55
        +2

        If you’re talking about the stake for the card benefits, you’ll continue receiving the benefits so long as you don’t unstake. Regardless of the price action.

        Someone on Reddit suggest converting their stablecoin into CRO for the 12%pa return on their $50,000 card stake. This doesn’t count towards the USD30,000 fixed tier 1 limit.

        • drdamo on 16/04/2022 - 16:28
          +2

          Interesting, I assumed when the CRO card stake term finished it would unstake and you would have to stake up to $50k value again. If the stake continues even after its expired until you unstake manually that would be a huge positive. I think my first stake term is about to expire, will report back if anybody is interested to know.

          • wutang01 on 16/04/2022 - 16:31

            @drdamo: That's right. In 33 days time, I have the option of unstaking which I won't.
            I'm currently down about -40%. I'll continue my current card benefits.

            I will only unstake if (1) I'm bailing from CDC completely or (2) I'm planning on upgrading my card.

            Undecided on the card upgrade because I've moved most of my coins to 3 other platforms for yields, so the higher percentage yields with CDC is not that beneficial for me.

            NFA DYOR.

            • drdamo on 16/04/2022 - 16:37

              @wutang01: If that's how it works I'll do the same for sure. Will probably convert TAUD to another crypto and withdraw to another platform.

              Can I ask what the 3 other yield platforms are and which one you prefer?

              • wutang01 on 16/04/2022 - 17:16
                +1

                @drdamo: Happy to answer this over PM if you message first? (I'm unable to PM you first)

          • techlead on 02/05/2022 - 16:03

            @drdamo: If the term expires, it will continue until you manually unstake. I got my Crypto.com card years ago, my stake has expired a long time ago, I just kept it in there to earn the interest. Unless you manually unstake, it will continue to earn rewards.

            It will give you the benefits regardless of price action. So if CRO spikes, it would be better for your unstake, then stake again with less CRO and you can do whatever you like with the excess.

            • obenihk on 03/05/2022 - 05:47

              @techlead: As per their latest email update from yesterday, it seems like they are dropping staking rewards effective June?

              1. Phasing out Card CRO staking rewards
                CRO staking rewards will no longer be offered to Jade Green, Royal Indigo, Frosted Rose Gold, Icy White, and Obsidian cardholders from the Effective Date. Cardholders who still have an active stake and who staked before 1 May 2022 13:00 UTC will continue to receive their CRO staking rewards until the end of their 180-day staking period.
  • Partake0486 on 16/04/2022 - 12:52
    +1

    CDC have absolutely gone down the tubes - don't give them another cent of your money. I've sold all my TAUD back to fiat and withdrawn it.

    Celsius isn't viable because there's no way to get the TAUD there - CDC have disabled TAUD withdrawals without notice or reason and Celsius have no fiat on-ramp so you can't buy it.

    Currently I'm looking at FTX - they apparently have one of the lowest fees/spreads of any exchange, support AUD, Payid and have free crypto withdrawals. They also apparently have an earn program that is 8% for fiat/crypto up to $10k USD I think. So you could put your fiat there and earn 8% theoretically. I'm light on the details until I actually finish creating an account. My plan with FTX primarily is to transfer my BTC away from CDC and either keep it on FTX at 8% or transfer it for free to Celsius and get 5.something%. I've largely given up trying to earn anything on fiat/TAUD - it's only a couple hundred bucks extra a year anyway.

    • bobwokeup on 16/04/2022 - 12:58
      +1

      Are you talking about FTX (formerly Blockfolio)? That’s where I do all my buying and free withdrawals as you also get the 8%. I’m selling all my TUAD when it expires and then putting it in FTX until I have a better option.

      • Partake0486 on 16/04/2022 - 12:59
        +1

        Yep that's the one I'm talking about

        • bobwokeup on 16/04/2022 - 13:24

          Cool I love it so easy to use, small coins on all purchases and free withdrawals makes it my number one crypto app.

          • wutang01 on 16/04/2022 - 14:51

            @bobwokeup: I love FTX (formerly Blockfolio) for their crypto withdrawals. But does anyone know what their fiat withdrawal process is like?

            • bobwokeup on 16/04/2022 - 16:52

              @wutang01: Yep same I deposit constantly with no issues as long as the bank name is exactly the same (had an issue doing it via Revolut - still worked but I had to show proof). I’ve never withdrawn fiat but it looks just as easy.

              • wutang01 on 16/04/2022 - 17:26

                @bobwokeup: Reason I asked is because of this help page:
                https://help.blockfolio.com/hc/en-us/articles/1260801656210-…

                "Withdrawal via Wire (US and International)"
                "Select International Wire Transfer (if sending to a non-US bank account) or Domestic Wire Transfer (if sending to a US bank account)."
                "One fiat withdrawal under $5000 is free per week"

                • bobwokeup on 16/04/2022 - 17:30

                  @wutang01: Yeah good idea, first one usually takes a little bit longer and then will be pretty quick (1 good thing about CDC the transactions are quick).

    • drdamo on 16/04/2022 - 13:05
      +1

      Thanks for that. Will look into FTX. Am looking at a lot more than $10k, though. I have an allocation of funds in crypto speculation using Binance. Staking I consider to be a hedge and alternative to ETF investing, so it's stablecoins only. At 50% the CDC rate the money would be better just in a mortgage offset.

    • wutang01 on 16/04/2022 - 14:59
      +1

      Yeah, I’m trying to figure out how else to get TAUD to send to Celsius.

      I’m currently researching how cost-effective it is to mint my own TAUD:
      https://www.trusttoken.com/products

      • lamsy on 19/04/2022 - 12:09
        +1

        If you have a Citibank Plus account, there are no fees for an international wire to TrustToken and they can mint to Celcius account no fees.

        • wutang01 on 19/04/2022 - 13:00

          Oh awesome! Thanks for sharing that.
          And then the off-ramp could be Celsius > Crypto_com to sell back into AUD fiat.

    • techlead on 02/05/2022 - 16:04

      FTX is my main exchange. I love it.

      Its a whale exchange too, so no questions when I have multi-million dollar balances and withdrawals are very very quick even for large amounts.

      • Partake0486 on 02/05/2022 - 16:08

        Seems good so far. I've purchased BTC using FTX OTC and the price is almost the same as Binance. Have you tried withdrawing fiat? Looks to be a $75 fee.

        • techlead on 03/05/2022 - 07:25

          I've withdrawn more than a million fiat from FTX (in multiple transactions). They don't have a $75. They never charged me. Its super quick too, if you request in the morning, it will be in your account by afternoon (did this with CBA, Westpac, ANZ and Macquarie transaction accounts).

  • rektrading on 16/04/2022 - 12:59
    +1

    @garygensler is putting the screws on CeFi platforms to protect his Wall Street masters and their 💩 0.001% APY.

    He knows that CeFi will eat TradFi breakfast, lunch and dinner if they keep giving +10% APY to low income investors.

    My suggestion is to either work hard and smart to become an accredited investor or learn how to use DeFi.

    There are plenty of vids on YT that will show people how to earn the best yield on CeFi and DeFi.

    • Kangal on 16/04/2022 - 19:58
      +4

      Lots of word salad thrown there, but literally no substance

      • rektrading on 16/04/2022 - 20:00

        Hi,

        Are you new here?

  • popsiee on 16/04/2022 - 13:02

    Will anybody be forfeiting their prepaid credit card and unstaking CRO?

    Nobody here will do the smart move . Its too difficult for people here to realize how unstainable their biz model is . Some people will head to the exit at the same time and find their stake is worth 0 and of course unable to withdraw .

    • Partake0486 on 16/04/2022 - 13:05
      +2

      I'm only using them for the 2% cashback now, which I had to stake $500 for. Every month I just turn whatever CRO cashback I've received into BTC. I also get around some of their restrictions on cashback by using the card with Sniip (rego, power bill). Won't be using them for anything else going forward.

      • Soluble on 16/04/2022 - 13:18

        Sniip transactions still get cash back? That's good to know!

        • Mokr on 16/04/2022 - 14:58

          https://www.ozbargain.com.au/node/629034

          As it's a debit card no fee.

          Damn will use.

          • Soluble on 16/04/2022 - 15:16

            @Mokr: That's even better! Use it for my business stuff with the Amex, but that's awesome!

            Just checked .85% charge

            $30 fee for $170odd in CRO, nice!

            Comes in in Sniip as a prepaid credit card

    • idjces on 16/04/2022 - 16:19

      Its too difficult for people here to realize how unstainable their biz model is

      Occasionally ill try and dig into where the funding comes from for this 12% return on CRO to be paid out, and never find a solid answer. As far as I can tell they are being distributed from an initial allocation pool, which means youre relying on new participants to buy up this extra supply of tokens.

      Won`t be ditching my mid tier card/perks, i try to cash out/derisk what I can so I'm left freeholding my current position

      • El-Rhi on 18/04/2022 - 14:28

        So it’s a Ponzi?

  • pegaxs on 16/04/2022 - 13:14

    YOLO it all into the NFT of the second tweet ever made on Twitter.

    • plmko on 16/04/2022 - 15:05

      Why not leverage it as well.

  • h4lcyon on 16/04/2022 - 16:10
    +1

    Trust Token have their own fiat on/off ramp that is viable for larger buys if you still want to use TAUD with Celsius.

    If you like the convenience of an app and don't mind being exposed to USD

    Just swap to USDC/USDT and move it to YouHodler for 12% (stay away from their multi-hodl unless they give you a free no risk promo).

    Or send it to OKX and swap for UST then you can stake on Anchor (as per above) or within OKX for 20%.

    • drdamo on 16/04/2022 - 16:31

      This sounds brilliant. Definitely following up on this. Thanks!

    • bobwokeup on 16/04/2022 - 16:55

      How do you do it within OKX for 20%? Just had a look and I couldn’t figure it out…Anchor is new to me as well so keen to know more.

      • h4lcyon on 16/04/2022 - 17:02

        Assets -> Finance -> Earn -> UST -> 21.89%

        • bobwokeup on 16/04/2022 - 17:22

          Ah thanks is that the Earn that can go down to 1% if it’s not loaned out?

          • h4lcyon on 16/04/2022 - 21:23

            @bobwokeup: Nope you'll earn that APR regardless if it's being loaned out as it's a proxy for earning in Anchor.

            The Anchor APR is currently being subsidised by the Anchor Yield Reserve which is a bucket of funds that pay the difference between the actual borrow interest and the advertised APR.

            Each month the APR can change by +/- 1.5% depending on the market conditions. With the boundaries being between 15-20%

            https://twitter.com/anchor_protocol/status/15077306121022545…

            The extra 1.89% OKX offer on top of the ~20% in anchor is subsided by OKX, to entice you to earn with them over Anchor directly.

            It's all a game of incentives to attract capital.

            • bobwokeup on 16/04/2022 - 22:56
              +1

              @h4lcyon: Oh I see yeah that’s more attractive. I put some coin in OKX a while ago and it was mainly at the 1% so that’s why I thought it was the same. Thanks I’ll look into it more that’s much more appealing.

        • augiewaz on 17/04/2022 - 23:44

          Bit of a noob here but what is the best/easiest way to get UST on OKX?
          From what I can work out, easiest way is to buy UST on Binance and then transfer it to OKX

          • bobwokeup on 17/04/2022 - 23:49
            +1

            @augiewaz: There’s always a few ways so I guess it’s personal preference. I’m going to buy USDT on FTX then transfer to OKX and buy UST there.

            • augiewaz on 17/04/2022 - 23:53

              @bobwokeup: Thanks! I have some money on Crypto Earn that will become unlocked tomorrow and will then be moving it over to OKX.
              Bye bye Crypto.com

              • bobwokeup on 18/04/2022 - 00:01

                @augiewaz: Yeah I’m done with them too. Literally just use them for the Visa debit card and DeFi Wallet app. The withdrawal fees are high unfortunately that’s why I sold my TAUD as it’s 1:1 with AUD and free to withdrawal.

    • idjces on 10/05/2022 - 10:33

      RIP luna and it's 20% anchor system on UST. Another unsustainable experiment that unfortunately didn`t work out

      • rektrading on 10/05/2022 - 10:43

        APY is 20.41%.

        Put in more UST for sweet yield.

        • idjces on 10/05/2022 - 10:54

          APY is 20.41%.

          Your math's game is on point. 20.41% on a token worth $0 gives you what sort of return?

          I guess you didn't yet get wind of the turmoil that is luna currently imploding all over crypto markets. They've emptied their treasury reserves entirely and their "stablecoin" is currently worth 75cents on the dollar…. if you can redeem it since most decentralized and centralized exchanges have been emptied on their available markets

          https://www.coingecko.com/en/coins/terra-usd

          • rektrading on 10/05/2022 - 10:59

            @idjces: DAI depegged in in 2019 and 2020 and came back.

            UST peg is getting tested now.

      • h4lcyon on 10/05/2022 - 16:55
        +1

        https://imgur.com/Lt8F6aP

  • FSTB on 16/04/2022 - 16:51
    +3

    Filter by stablecoins - https://app.beefy.com/#/.
    Plenty of good opportunities and autocompounds.

    • drdamo on 16/04/2022 - 17:51

      This is a great resource, thanks!

  • MagicMushroom on 16/04/2022 - 20:07
    +1

    Crypto interest rate comparison from Extra Crypto is pretty good

    Midas investment got 20% APY on USDT/USDC but looks too good to be true.

  • solstice on 19/04/2022 - 14:27

    I'm a CDC customer however I have moved mostly to wirex since the rates dropped. $30/month gets 4% cashback, 14% on stables, 10% on other crypto. Staking gets better rates.

    Instant load from debit card and no deposit fee.

  • ALesha77 on 19/04/2022 - 15:12

    Serious question here so asking for an honest response please.

    How do staking folks protect the downside of principal loss?

    From what I can see there are at least 3 possible scenarios of things going south big time:
    1. Platform risk. I am with Binance for most of my 1% crypto allocation and still nervous at times but when I look at some suggestion here - this is nuts!
    Even some reputable platforms like Celsius provide liquidity to various project (mostly levered up) and while their loans are fully-collateralized, the collateral value moves a lot, the projects revenue streams are dubious at best and who knows how much of that collateral will be there to liquidate in rug-pull event.
    2. Crypto on-ramp / Stable coin risk.
    To my knowledge only USDC has got full amount covered in bonds and has got some legal framework around it but even with all that I am not convinced that it will not halve in value due to some massive liquidity event. Not to mention USDT that has been in a hot water with US regulators. DeFi even worse as your claims will be on protocol assets and what are those?
    3. TradFi on-ramp / off-ramp. I happened to know 1st hand that AU banks are watching all crypto-related transfers very closely. A highly unlikely risk but who know what those politicians / regulators have in mind. Especially if the bonds bubble bursts and they will need liquidity ASAP.

    How can you keep your net-worth in staking crypto and sleep well? Am I missing something?

    • CrowReally on 20/04/2022 - 13:03

      Line goes up, assortment of emoji, "pamp", "stonks", other meme phrases because we're all having so much fun, here's some YouTube videos to watch.

      Glad to be of service.

      • ALesha77 on 20/04/2022 - 17:08
        +1

        Not sure which part of "serious question" was not clear in my message but your service is no longer wanted. Cheers.

        • CrowReally on 20/04/2022 - 17:30
          +1

          No worries, I'm sure the "So, an unregulated speculative high risk/high return asset class.. tell me how to do this safely?" query that you ever-so-reasonably posed will find an in-depth answer worthy of its asker.

  • augiewaz on 21/04/2022 - 22:28
    +2

    For those interested, from May 5, Swyft will be supporting TAUD.
    Tier 1 (0 – 10,000 units): 10% APY
    Tier 2 (10,000 – 20,000 units): 8% APY
    Tier 3 (>20,000 units): 6% APY

    More info here: https://help.swyftx.com.au/en/articles/6154007-earn-faq-s

    • rektrading on 21/04/2022 - 22:53

      ING, MQG and WBC savings accounts rekt. 😆

  • c0dingmachine on 22/04/2022 - 01:09

    If people want to go the DeFi route:
    https://www.convexfinance.com/stake
    look up AUD.
    You need to purchase Iron Bank AUD (from fixedforex.fi using DAI), deposit on curve.fi, then stake on convex.
    20-23% APY at the moment.

  • ALesha77 on 22/04/2022 - 13:27

    I just looked at some suggestions here, specifically around not well-known protocols and illiquid AUD pairs and will put the below piece here for anyone who cares to get some knowledge. I wish I had this piece of advice in my time of searching for high-yeld.

    First of all, I am CRYPTO bullish in the long run, but NOT in the next few-months to a year. My secular view is that crypto will be a new dtocom phenomenon that will pump-dump and after that it will become widely used BUT not necessarily in the way it is structured at the moment (i.e. I highly doubt that BTC will EVER be used as currency).

    Next, to the knowledge piece.
    Before bitcoin was a thing, there was another shiny object called "e-gold" and it shared a lot of properties with BTC (except for being centralized). Transactions, wallets, "hard-asset", etc. And of course the HYPE! Also here were a lot of shiny objects around that e-gold shiny object and one of those things was called HYIPs.

    Long story short - if you were actively participating in HYIPs then you learned the hard way how to REALLY make money in those schemes and that was not through investing into them. It did end badly of course, with "investors" most hurt by the HYIP scheme. I was lucky to escape with even some profit but the most valuable thing was that experience.

    If you thought crypto is a totally new "game-changer" - nah, these things have been around for ages, however if you want to argue "tech" then e-gold was a grand-daddy, the very first crypto if you wish. E-gold was a truly nice great and clever idea, like crypto.
    What makes a REAL difference is how we use those ideas and I do not see MUCH of a difference between the use of DeFi protocols and e-gold at the time.

    DYOR, as they say.
    http://www.worldlaw.eu/article/1951/e-gold-hyip-scams.html
    https://www.google.com/search?q=e-gold+hyip

  • idjces on 02/05/2022 - 09:01

    https://crypto.com/product-news/crypto-com-visa-cards-update

    Damn, crypto.com and their cro token turned out to be a complete flop

    • rektrading on 02/05/2022 - 12:05
      +1

      They're reducing inflation to stop users from damping CRO.

      It's a good strategy to protect the price.

      • lilkid28 on 02/05/2022 - 12:34

        But the devaluation is on the extreme side tho. Only good for whales with >50k CRO staked. Not so much for those with smaller balance.

        • rektrading on 02/05/2022 - 13:10
          +1

          Deflation will reduce the circulating supply. This will in theory cause a shortage of CRO and push the price up.

      • idjces on 02/05/2022 - 13:01

        That doesn't make sense. The only value CRO had going for it was the decent cashback and great earn/staking returns.

        Take that away and CRO has very little value, people will dump it in mass.

        More likely that the CRO model was completely unsustainable, and could only be carried on by printing/releasing surplus CRO tokens. Crypto.com don't make enough profit to buy these tokens on market and hand them out to the holders ("stakers") at the existing rates.

        Having to make whole that $30m or whatever they lost in the hack, certainly won't help.

        • rektrading on 02/05/2022 - 13:21

          CRO is a coin with two main utilities.

          1) Users need to look up x amount to get the card and/or earn rewards.
          2) CRO is used to validate / delegate blocks and pay for gas on Cronos.

          Reducing the issuance of CRO will drive the price up because more coins are needed for the higher tier cards. The more CRO that is locked up the lower the circulating supply for use on Cronos.

    • obenihk on 03/05/2022 - 08:04
      +1

      Would be interested to know if there are any alternative crypto cashback cards available in Australia.

      • liam2040 on 04/05/2022 - 01:23
        +2

        Plutus is getting a mass migration of users and looks really lucrative but it's only for UK/EU …
        CoinJar is Australian but their rewards system is a zero sum game. You pay 1% fee on all transactions and then can redeem those costs for same value vouchers etc.
        Hopefully there's something else out there that is at least 'coming soon'

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