This research report tells you the best way to earn
passive income with crypto lending.
We've been working on this report
for a few weeks because there's a problem.
There are just too many options.
There are far too many sites
and coins to potentially lend out.
And there's no one resource that
gives the whole picture.
So I've decided to take the matters into my own hands.
Let's rank the top crypto lending sites
by average rates offered
and coins lent out because this matters.
Don't believe me? Let me show you.
Let's say you're lending out $10,000 for 20 years
at 8% interest you would have $49,000 after 20 years,
at 10% interest you would have $73,000,
Now do we know what crypto lending rates will be in 20 years?
But the last thing you want to do is look back
20 years from now, wishing that you would have just
watched all the way through that ten minute YouTube video on lending.
This video has some regular old crypto lending
like Bitcoin and Ethereum, but the primary focus is on
stablecoin lending because this is where
you can earn sometimes as high as 50% interest passively🤑.
Now, before we get into the data,
we need to cover the types of stablecoins
that we're looking at because it's important
to be able to differentiate which one is best for you.
The first type of stablecoin is Fiat collateralized.
This is the most common type
and for good reasons.
Generally, you want a stablecoin to act
like a dollar and be stable as, you know, a dollar.
So it makes sense to back a stablecoin
one to one with dollar.
So here's how it's generally supposed to work.
You have $100 in fiat that you want to
trade for a stablecoin.
You go ahead and make the trade.
Your US dollars go into the stablecoin's reserve,
and then they then mint $100
in stablecoin tokens that they give to you.
When you sell, the opposite is supposed to happen.
They send you the US dollars back
and they burn the $100 in extra tokens,
keeping everything equal.
Now, I say "supposed to" because the
biggest stablecoin of them all, Tether,
has some major concerns in the past with
proving that they actually have 100%
US dollar reserves for every Tether token issued.
They do have an audit from February showing that they
hold adequate reserves.
However, many feel that there is much more
to this story.
So much so that there's currently a
$1 million bounty for
any information leading to a discovery on
Tether's true reserves.
Now, one thing we do know
is Tether holds a lot of commercial paper
instead of just cash in their reserves.
Commercial paper is basically a form of short term debt.
Now this is okay, except we don't know
who they're lending it to.
The problem is, Tether is
by far the largest stablecoin,
and they have the most options and
best lending rates on platforms,
despite all of these concerns.
So it's something you need to consider.
Some people will say
they will never use Tether
and others think it's safe enough.
No matter where you're stand on this issue,
I'm going to give you options for a variety of stablecoins.
That way you can choose the one that works best for you.
The next is BUSD.
BUSD is Binance's stablecoin,
which is facilitated by Paxos.
Paxos goes above and beyond
to show that they have proper reserves in place
for their stablecoins issued.
They release a third party audited reserve report
every single month.
On here you can see their dollars in the bank
versus tokens issued.
$922 million in reserves and 922 million tokens issued.
The third collateralized option on the list
that we'll be examining today is USDC.
USDC is a joint venture between
Coinbase and Circle.
They also have third party audit reports
done on a monthly basis,
which you can find on their website, and this will show you
exactly what is in their reserves
and the total tokens issued.
As of the last audit, they have $32 billion
in reserves and 32 billion tokens issued.
And finally, we're going to include a
crypto backed stablecoin in our research.
These work a little bit differently.
So the first three tokens
USDT, USDC, and GUSD were backed
by US dollars in a centralized reserve.
MakerDAO is much more decentralized and
backed by a variety of other crypto tokens.
It's decentralized because DAI is facilitated
by a smart contract where you can deposit a crypto
like Ethereum or the COMP token
and receive DAI in return
To protect reserves against volatility,
DAI is actually over collateralized, meaning that they have
For example, if you wanted $100 in DAI,
you would have to put up $150 in Ethereum as collateral.
So now that you have more context on the stablecoins
that we're going to cover, you can decide the coin
and the method of investing that you'd like to use
as we go through our data.
The first platform in the list is Yearn Finance.
Yearn is a DeFi platform built on
Ethereum that allows you to earn interest on your cryptos
without a financial middleman.
Here are Yearn's average lending rates,
1.08% for USDT,
3.85% for USDC
and 3.57% for DAI.
Now, a point here that I want to make
is this report is going off of 30 day average rates.
Some of these were actually recorded by hand,
but if you go on Yearn or any of these sites
and interest rates are slightly different,
that's because market conditions can change
and these rates tend to fluctuate depending
on the exchange or the platform that you're looking at.
My main goal here is to find out
who is consistently best.
Next on this list we have FTX.
FTX is crypto derivatives exchange founded by
29 year old multi-billionaire Sam Bankman-Fried.
This dude is worth
I've actually been thinking about making a mini
documentary on YouTube on him.
Let me know if you'd watch it.
Anyways, as far as stablecoin lending goes,
they only offer USDT with
average rates of 5.95%.
They also offer Bitcoin and Ethereum lending at
1% and 1.35% respectively.
Now we have Coinbase.
Coinbase is the most famous on the list, but
You're paying for that user friendly interface.
Coinbase offers 4% interest on
USDC and 2% interest on DAI.
The next platform is Compound.
Compound is an algorithmic DeFi protocol
built on Ethereum.
They allow a variety of ways to
earn interest on your crypto,
again without a middleman.
But just how much can they make you?
With USDT - 6.81%,
USDC - 5.74%
and DAI - 3.33%.
Next up we have dYdX.
Now my broken sense of humor always wants to just
go ahead and pronounce this as D***,
but I'm pretty sure that they're brainiacs
and this is named after a derivative function,
not, you know, the organ.
Anyways, dYdX is another decentralized platform
built on Ethereum with lending capabilities.
Their USDT rates are 6.81%,
USDC - 5.74%
and DAI - 3.33%.
Next up we have BlockFi.
Now you might be familiar with this
as they're a sponsor of mine.
BlockFi is interesting because they
focus their efforts on making
earning interest on your crypto
as easy as humanly possible.
They're attempting to bridge the gap between crypto
and old school banking.
Here, you're not gonna see the absolute
highest rates possible,
but the user experience is the best
of any platform I've used on this list.
So there is a kind of balance and decision
to be made there.
If you do want to try them out
on the link in the description where you can get
upto $250 in free Bitcoin by making an account.
Now on to their rates.
USDT lending - 7.5%,
USDC - 7.5%,
BUSD - 7.5%
and DAI - 8.5%.
Next up we have Nexo.io
Nexo is a crypto wallet that allows you
to store digital assets, exchange them and earn interest.
They're fairly large with 2.5 million users,
but how much do they pay?
USDT - 8%,
USDC - 8%
and DAI - 8%.
We're starting to get up there.
8% is the average trends for the S&P 500,
so not too shabby.
Next up we have Celsius,
one of the bigger players in the space.
Celsius offers cheap transactions,
borrowing, and a variety of ways to
earn money through lending.
But, say it with me-
- Say it with me one time!
USDT - 10.02%
we broke double digits
USDC, also, 10.02%
DAI - 4.6%,
and BUSD - 10.02%.
Now 10% isn't bad whatsoever,
especially if you get those returns
for a long period of time.
If you had $100,000 lent out at 10% for 40 years,
you would be looking at $5.3 million in your retirement,🤯
but let's keep going
because next we have Venus.
I actually wasn't familiar with Venus until
starting research on this video and
Venus is a decentralized platform for lending
and staking built on the Binance Smart Chain.
Now, show me those rates.
- SHOW ME THE MONEY!!!
USDT - 10.63%
USDC - 15.53%
DAI - 11.12%
and GUSD - 14.19%.
Side note, they also offer some
attractive lending rates for Cardano
at 11.12%.
Also, if you want to earn passive income
on your Cardano that's risk free, because
lending, I guess, isn't 100% risk free,
you can stake your Cardano for about 5% annual interest.
And if you would like to stake your Cardano
in my stake pool, I would appreciate it
and you'll earn some passive income.
All you have to do is
Or if you want more information on how the
pool is run and everything we do in the background
or the charity that we donate to,
you can visit stakewithmax.com
Now, next on our passive income pyramid,
we have Crypto.com
Crypto.com is a full scale exchange with
lending capabilities on a variety of stablecoins
and classic cryptos.
Now here are the rates:
USDT, USDC and DAI
all 12% annualized,
GUSD - 3%.
Also, both Bitcoin and Ethereum lending is
6.5% on their site.
Now on the final stretch here.
Next up, we have another platform that
I hadn't heard of until
the research for this video
and that is YouHodler.com
They offer crypto swaps,
crypto loans, which can actually be really nice
if you have a ton of crypto gains and you're
trying to avoid some capital gains tax,
you can just simply lend against your stack.
You never have to pay capital gains.
And of course, they offer
regular old lending where you can earn
some passive income.
But what are their rates?
USDT - 12.3%,
USDC - 12%
and DAI - 12%.
Not too shabby.
Moving on from here is one that you're likely
familiar with if you've been
watching this channel for a while
and that is Kucoin.
I have personally used Kucoin
to lend out stablecoins for about seven months now.
In that time, I have personally made
$21,000 in interest.
That comes up to $104
every single day since I started.
But what are their average rates?
This is actually one of the tougher platforms
to get data from,
but the average lending rate that we found
is 15.33% for USDT, crazy,
and 10.95% for USDC.
Now, I can say from my experience
that this seems correct.
I've seen lending rates on that platform
as high as 75% APY
and as low as 5%, but
neither of those lasted very long.
The rates on Kucoin are determined by a
free market and what people are willing to pay.
So what you'll see is when cryptos are pumping and
doing especially well,
then lending rates go through the roof
and when crypto is dropping,
which happens sometimes, then lending
rates drop significantly as well.
Also, I will have Kucoin linked in the description
where you can save on trading fees,
if you want to go ahead and try out that platform.
No to the last member on this list,
and that is Fulcrum.
Fulcrum is a trading, lending, staking and borrowing platform.
They're similar to Kucoin in that 10% of
your lending profits go to an insurance fund
to ensure that you don't get stuck
in a bad loan.
And their rates?
I'm glad you asked.
USDC - 9.81%,
DAI - 3.43%
and USDT - 16.19%
just beating out Kucoin.
If you were to invest $100,000
at 16.9% for 40 years,
you would end up with $62 million. 😵‍🤯
But again, we don't know how long these rates
will stay that high.
Now let's do a summary.
The winner of this race really depends on
If you're okay with USDT,
which is the highest maximum rate of any coin here,
then Fulcrum or Kucoin may be your best choice.
If you want to go with USDC,
then Venus is the standout winner at 15.7%,
followed by a tie between Crypto.com and YouHodler.
For BUSD, Venus wins again
significantly ahead of the others,
and DAI is a tie between Crypto.com and YouHodler
at a healthy 12%.
And there you have it.
If you enjoyed this breakdown,
consider hitting the subscribe
because videos like this take so much
time and effort to make
and I would appreciate it.
Now I would just like to thank you so much for watching
and I hope you have a profitable day.