-= SAFEST 5m USD windfall allocation through DeFi (and other stuff) =-

\- Edited -. What do you think is **the safest (NOT HIGHEST YIELDING) DeFi/CeFi protocol where you’d be comfortable allocating a fairly large sum of money? Why would that be?**

I was thinking either CDC, Gemini or Anchor (DeFi wise).


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8 thoughts on “-= SAFEST 5m USD windfall allocation through DeFi (and other stuff) =-”

  1. There are periodic and top-end limits to CeFi exchange withdrawals (eg $10,000 a month, 5x a day, etc). This varies by exchange. Nexo has the highest withdrawal limit and is quite generous on the wires. Otherwise, Kraken remains a safe option, as well as Gemini or Coinbase. Coinbase is very liquid compared to the rest. Coinbase uses ACH which is fairly quick and Kraken and Nexo support wires primarily.

    DeFi protocols like Anchor allow frequent liquid withdrawals but you have to off-ramp them at the moment. You pay a fee for each claim on aUST and fees for liquidating UST.

    I am currently discussing with George of OBFC (https://www.obfc.finance/) their web-wallet to bank-direct via wire solution. They are still under development but is the only DeFi direct off-ramp that’s on my list right now. Like many startups, they aren’t audited yet.

  2. Well, in my opinion it depends on your age and time horizion.

    If you’re in your 20s (mabye even up to 35) $5.5k/year in a roth IRA compounded for 40 years (so 5.5 x 40) = $220k = $1.25M when your 65

    RE is tricky because there’s many ways to be profitable (flipping, cashflow, appreciation). If you don’t need to move, I’d just buy a house, build equity, also buy an investment property for cashflow and take a HELOC and continuing growing. So I’d budget $100-$250k for this.

    Tech is a high growth sector, but you will still be exposed to insider trading, founders dumping their stock when IPO’d, etc. I’d stay away from the stock market besides an index fund.

    I would go almost all in DeFi, spread across multiple verticles with insurance if possible (ie, nexus mutual). $1M in anchor will net you $15k/m, $1m in the degen box will net you $71k/m…

    Honestly this is not a black and white question. Whats your goal? cashflow? $ growth? You’re not gunna get a good answer from reddit, i promise you

  3. That’s for sure would be Nereus finance. Why? Simple. Nereus finance is in partnership with Wirex and they allocated 5bln WXT tokens (25M$) to Nereus finance.

    SO, they got really excellent rates and the protocol is reliable. A great option for investment. Check it out.

  4. Every protocol has its risks, but if you’re talking about stablecoins, I would look at 4 different strategies that are all relatively low risk but risky in different ways which is what you want:

    1. Voyager USDC @ 9% APY – centralized platform and USDC is pegged to fiat
    2. Nexo UST @11% APY – cefi and UST is algo stable
    3. Midas investments USDC @ 20% APY – defi platform
    4. Anchor UST @ 19.5% – defi

    This is a mix of fiat backed stable and algo stable in cefi and defi. If you deposited equally that would give you ~15% APY but with diversified risk across platforms and types of stables.


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