Eth defi coins1/23/2024 ![]() High risk, high reward, if you get the timing right and the underlying instrument is sound and serious about paying what it promises. Like traditional dividend payments, if the price per coin goes up, then the yield paid on your crypto gives you new coins and now you have more coins that are worth more money.īut DeFi yield, for traditional Wall Street investors, is a little more like C rated junk bonds. In actuality your coin balance will only increase maybe 4.6% in those 15 days,” he says. ![]() One main issue is that annual percentage yield might be high but the staking period available is low – for example you can reach 200% APY in 15 days, assuming it’s compounded daily. But, deciding on coin investment purely based on the yield offered will be problematic since there are also downsides to take into account. “If it is decided to hold certain project’s tokens over the long run, then exploring yield-paying systems is an option. “The focus of investors should be on the fundamentals of the project, not just the yield it pays,” says Eric Nguyen, CEO of Spores Research, and a former senior investment analyst of Elliott Management, a hedge fund with over $35 billion in assets under management. Anyone with a Coinbase account can easily discover which coins pay yield. ![]() Like a traditional dividend paying stock or bond, yield on DeFi tokens fluctuates depending on how these projects and exchanges roll them out.
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