Hello everyone! Many traders and users of crypto assets ask about low-risk investments with the highest possible API, and today, we will talk about one of the best options for investment in USD with a great API of around 40%. We will use USD Coin, which is also known as USDC, and Waves.Exchange. Before we start talking about how to invest, let me talk about risks and let me explain why I call it a low-risk profile. Usually, risks of investments in crypto are related to one of the following types: volatility risks, risks of impermanent loss. counter power risks and security risks. Almost all cryptocurrencies are very volatile, and their price can easily change by 10% or 20% in a day. So, the best way to avoid such a risk is to use stable assets, usually pegged to fiat money. They can be centralized or decentralized. Today we will talk about a centralized stable asset called USDC. So, USDC is a cryptocurrency with a stable price pegged to the United States dollar.
The majority of crypto traders and holders are familiar with USDT or Tether USD, which is also a cryptocurrency with a stable price, pegged to the United States dollar. So, what are the differences between these two assets? The main difference between Tether and USDC is that USDC was created by Circle and Coinbase and is backed by these companies, while USDT is issued by Tether Ltd., a company on the British Virgin Islands. Both issuers of USDC are American companies with a great reputation. For example, Coinbase is going public through IPO next month. So, it had to apply with the United States Securities and Exchange Commission (SEC) to go public.
It means that their documents and financial reports were reviewed by SEC and also, after the IPO, they will publish reports every quarter. It minimizes one type of risks, the counterparty risk. So, USDC is much more transparent and has much lower risks than USDT. Let's go to Waves.Exchange and see how it allows staking USDC with such a high APY. The very first thing that you have to do is to create an account, if you still don't own a Waves.Exchange account.
The next thing you have to do you have to get some USDC. There are a couple of ways. The first way is you can buy USDC on Waves.Exchange, especially, if you own WAVES or BTC or ETH. On Waves.Exchange, this would be the easiest way. You just can go to the trading section here and buy some USDC. You can find here all the pairs which are available for USDC. The main pair is USDN, of course. So, you can swap or exchange your WAVES or BTC to USDN and then you can exchange USDN to USDC, for example.
The second option how you can get USDC on Waves.Exchange – you can deposit from any ETH wallet. So, USDC, as you may know, is an ERC-20 asset, and Waves supports it thanks to Waves.Exchange gateways. You can easily deposit USDC using the button called Receive. Here, you'll see an address where you have to transfer your USDC if you own a MetaMask. Then, you can just enter an amount of how many tokens you will deposit with Waves.Exchange and then you'll just have to approve your transaction using your MetaMask. So, this may be even the easiest way how you can get USDC from the Ethereum network to the Waves chain. So, when you have USDC on Waves.Exchange, you can invest them by navigating to the investment section. Here is the investment section. Let's click on USDC here. So, as you can see, there are more details about USDC staking and investment on my screen right now. Actually, here are some details and how the investments works. So, USDC is taken as a default interchange product on the Waves blockchain. Funds are accumulated on the Waves blockchain, which are then proxied into DeFi products of the Ethereum ecosystem, including Curve, UniSwap and so on.
To provide liquidity, you have to click a button here called Stake USDC, enter an amount how many coins you want to provide, agree on the rule that the process of unstaking USDC takes around two weeks. So, please, keep in mind that when you stake, it works immediately but when you unstake, it takes two weeks. Then you just have to click Stake USDC, and that's actually it. So, as a proof and guarantee you'll get a token called USDCLP. At any moment, you can initiate an exchange of your LP tokens to USDC by clicking this Unstake USDC button, but it will take two weeks. So, please keep it in mind. Staking rewards are not paid directly. They are accumulated on the smart contract, so, the price of your USDCLP tokens grows constantly.
You can see it here on the graph that the price of one USDCLP is growing constantly. You may ask about how it works. Actually, it uses farming and liquidity providing. Experienced crypto users know that liquidity providing has a risk called impermanent loss, but it does not work for stable assets. So, permanent loss just doesn't exist for USDC. Talking about security risks, there are many cases when hackers drain smart contracts but here with us, on the Waves side, staked funds are managed through a public smart contract. So, anybody can review it and you can always independently audit the smart contract.
It was audited many times by many community members, of course, and also UniSwap and Curve, which are used for earning such a high API, have the best reputation in the Ethereum community. So, their smart contracts were audited many times and proved them as robust and secure decentralized applications. To sum up this video, we showed you how you can stake your USD with the highest API and very low risks.
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