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"Shouldn't I use DeFi to earn interest on coins I hold?"

The marketing machine for "DeFi" is mostly focused on how people can lend their coins on various "dapp" platforms, and you might think it's a good idea to leverage that and earn some extra coins. Well, look no further, I did the comparison for you and it turns out that lending on "DeFi" is a pretty bad deal! Don't worry though, there are alternatives...

These days the highest interest rates on any lending platform are for fiat-pegged "stablecoins". In other words, you'll be paid significantly higher interest rates when lending USDT or USDC than when lending BTC or ETH. The reason for that might be that there's more demand right now for taking USD loans in order to buy cryptocurrencies, than taking cryptocurrency loans to buy USD (short cryptocurrencies). As markets fluctuate, this dynamic might change.

The way these loans work, is that one side would usually want to go leveraged-long on some coin, so they would deposit some collateral, say in BTC or…

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