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/biz/ - Business & Finance

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29308196 No.29308196 [Reply] [Original]

Frens, give me some advice. Let's say I can live comfily off $1500-2000/mo. I always thought I needed a lot to make it to a point where I could safely take that amount of money out, as taught by boomer financial theory. HOWEVER. Take for example 300k. Make a little effort to farm stablecoins for at least 20%apy = at least 60k/yr = at least 5k/mo with plenty money left to beat inflation or pay for whatever extra expenses, even if it doesn't turn out so ideal. So what's up with all those boomers saying you need a mil to achieve the above (along with some of you retards who bought into it)? Why are you not doing this?

>> No.29308337

>>29308196
>So what's up with all those boomers saying you need a mil to achieve the above

thats just something retard who live beyond their means say who need to find god instead of worshipping material goods

>> No.29308363

>>29308196
20% apy would be impossible outside of crypto + you’re taking the risk of crypto for granted (fair, but ex. Tether is being sued).
Also you’re not accounting for inflation. You need steady gains to continue having the same purchasing power as last year

>> No.29308831

so, looks like i'm retiring soon

>> No.29308970
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29308970

>>29308196
I've recently been thinking the same thing a lot anon
I live in central Europe where it's much cheaper than the rest of Europe/North America
I could literally just put $100k of stables into multiple platforms (to minimise risk of hacks) and I'd be making $20k/year from doing literally nothing
I think the only reason it works is because of the IQ Bell curve. Naturally, only 130+ IQ people will be autistic enough to be doing this. Also the digital age has finally arrived. Just like how the industrial revolution meant sitting in factories instead of toiling on farms, the digital revolution has meant we can do literally nothing instead of slaving in factories.

>>29308363
he did account for inflation, read the OP again

>> No.29309565

I've never looked into farming or lending or whatever so I'm not really sure how it works, but is the 20% APY actually fixed? Doesn't it fluctuate according to market demand or something? I was under the impression that you can get great APYs during bull markets but it will be a lot less during the bears, so you can't necessarily rely on an actual 20% return over the course of a year. But maybe I got that wrong.

>> No.29309887

>>29308196
I've started moving some of my fiat into crypto bank/exchanges which pay 8% or more interest. But certainly not all of it. The chance of getting burned is huge, and if a bear market comes back, who knows what could happen.

But for the short term, even if it's just a year, I don't mind risking a few thousands for good returns, when it was previously sitting in 0.5% accounts and inflation is higher than that.

>> No.29310040
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29310040

>>29309565
True, I imagine it'll drop a lot. If a chart of APY % over time exists (from AAVE or wherever) then you could see how it was during the bear markets. Anybody know of one?

>> No.29310637

20% wont be forever, my guess is that it will stabilize between 5%- 10% for lending. farming is a different story

>> No.29310683

>>29308970
Henlo fellow non-expensive Europebro. Was thinking this exactly, risk doesn't even appear to be high to be honest, I'll probably stick to DeFi and spread out like you said.

>>29309565
Lending platforms and yield farming are two different things, your question mainly applies to the former. Really depends on where you put it, actively looking around and moving funds regularly I'm pretty confident you could even get 3fig apy on some of your funds without taking great risk or anything.

>> No.29311032

>>29310683
have you done yield farming before? how was it?

>> No.29311544

>>29310683
Yeah been doing it a bunch, lately also been experimenting with putting stablecoins in. Don't know what to tell you, it's good. I sell the gains regularly, and even if the underlying platform were to rug you can still pull out your stablecoin LP by interacting with the contract directly, there are guides for this. Can recommend.

>> No.29311593

>>29310637
Where are people getting 20% from? Anyone offering you 20% sounds like a scam.

>> No.29311747

>>29311593
ever heard of Aave?

>> No.29312149

>>29311747
No I hadn't. But earning 24.7% on USDT? Come on... if it looks too good to be true then it probably is. How could that possibly be sustainable?

>> No.29312350

>>29312149
Because in a bull market nobody is carrying stablecoins such as USDT, everybody is in btc or alts. So the platform will offer higher APY for providing liquidity to it. In a bear market the APY will be lower because people exited positions and went to stablecoins, I don't know how the APY will be during a bear but I'm sure there's data.

>> No.29312409

>>29311593
>>29312149
ngmi

>> No.29312759

>>29309565
I'll be honest the APYs on farming feel lower to me than outright investing in the project token directly. Especially on new projects that go up thounds of percents before the price in settles it into some structure.