Is lending more profitable than staking?

[Crypto_Potato]

There are several ways to earn in the crypto space without actually trading your capital, things like staking and savings come to mind. To my surprise, I met someone today that lends out his BTC instead as a way to make passive income, which I found absolutely weird ngl

Apparently he uses one of these various platforms that offer lending and borrowing crypto, but this one is called Liquidium and he says it offers up to 300% APY. That sounds too good to be true ngl and even if there are no strings attached I don't think it's something I would do?

What do you guys think about this?

[Zed0X]

300% APY is only short term and there's always a term that teams can adjust the rate whenever they want to. As to the question which one is more profitable, just look at the rates offered. I think the more important question is which is more secure because we've already seen news of rugpulls, hacks, and even bankruptcy from both new and older lending/staking platforms.

[ABCbits]

I just checked their website and found this description.

Borrow
against your inscriptions

Use your Ordinals, Runes, BRC-20 as collateral to get instant BTC liquidity. Your inscriptions are safely locked in a DLC until repayment, making the process secure and fast.

Lend
earn yield on your Bitcoin

Lend your BTC and earn interest. Each loan is secured by an inscription in a Bitcoin DLC. If the borrower repays, you get your BTC plus interest. If not, you receive their collateral.

No wonder the potential APY is very high, when the risk also very high. Price of the token (which used as collateral) could crash by the due date.

[Crwth]

It depends on the return, for sure if that is going to be your parameter in terms of profitability or in any other ways. I suggest that you join a secure and good project. It would be dependent on that IMO.

[joniboini]

That is an absurd number of APY. I checked their website and it seems like their APY for the lending tab is the same across all coins. Not sure if their website is broken or that's what they believe. I honestly wouldn't be surprised if they just made up those numbers considering how ridiculous it feels. Wouldn't the dev can get rich asap by using his own code then? OP, I also suggest you to check other places instead. Even if they claim they make some payouts the number are just too high to be true. CMIIW.

[libert19]

I prefer staking over lending, because staking is non-custodial.

Regarding your friend, 300% apy is red flag, and if it's genuine such yields last for very short time, anyhow I'll never give up custody for my btc for some interest.

[ABCbits]

That is an absurd number of APY. I checked their website and it seems like their APY for the lending tab is the same across all coins. Not sure if their website is broken or that's what they believe.

I just checked it and the APY number is different, ranging from 90% to 270% (Ordinals tab) and 90% to 380% (Runes tab).

I prefer staking over lending, because staking is non-custodial.

I agree, although not all staking are non-custodial since CEX these days also offer staking service.

[bitterguy28]

Apparently he uses one of these various platforms that offer lending and borrowing crypto, but this one is called Liquidium and he says it offers up to 300% APY.

300% apy makes me a little skeptical to be honest

and even in any platform i don’t think lending would be also something i would do especially compared to staking it is too risky to be involved with other people who may or may not follow through the contract no matter what the consequences you never know what people are capable of

i might consider it if the platform has some fallback for lenders otherwise it’s just too risky to get involved in

[Wiseman]

There are several ways to earn in the crypto space without actually trading your capital, things like staking and savings come to mind. To my surprise, I met someone today that lends out his BTC instead as a way to make passive income, which I found absolutely weird ngl

Apparently he uses one of these various platforms that offer lending and borrowing crypto, but this one is called Liquidium and he says it offers up to 300% APY. That sounds too good to be true ngl and even if there are no strings attached I don't think it's something I would do?

What do you guys think about this?

Yes, it is more profitable, but you should understand that where there are very high percentages (supposedly doing nothing), there are always a lot of risks and a lot of technical and analytical knowledge. If you are not a technician or analyst, then I would not advise you to go there, since it is much more difficult than it seems at first.

In short, if everything were so easy and smooth there, then everyone would already be making money on it.

[LogitechMouse]

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To my surprise, I met someone today that lends out his BTC instead as a way to make passive income, which I found absolutely weird ngl

Apparently he uses one of these various platforms that offer lending and borrowing crypto, but this one is called Liquidium and he says it offers up to 300% APY. That sounds too good to be true ngl and even if there are no strings attached I don't think it's something I would do?

What do you guys think about this?

Lending altcoins is something that I've heard multiple times already, but lending Bitcoin is something new, eh?
300% APY. Nah, just forget about it.

That's too risky and like you said, it's too good to be true. There's a high chance that this platform will run away alongside the BTC that's been deposited on it. It's DeFi and it's the first time that I see Bitcoin being used on a lending platform because normally, it's altcoins that are being used, but the APY is just too much. I'd rather hold my Bitcoin and earn nothing than depositing it on a lending platform like this one, and anytime they can just run alongside the funds.

It's very skeptical.