Questions about Binance's Solvency/Safety

1

Polkadot

So I've thought of opening a Binance US account (I'm US based so I don't have a choice) to day trade since they have BTC trading with no maker/taker fees, but while looking into it I found one particular aspect about Binance to be quite concerning. For example they pay up to 5.20% for staking ETH, but the APR stated on the Ethereum Foundation's website is 4.40% APR. I also found that they're also paying 10.90% for ADA, while the calculator on cardano.org shows the rate is 4.6% no matter how much you stake. Then for DOT, they're paying 21.79% APR while polkadot.network states that staking on chain can get you up to 18% APR. Not only is this, but they're paying 5% APR on USDT and 6.00% on BUSD, which is much higher then even the highest US treasury bonds (ignoring I Bonds) and aren't able to be staked on-chain for rewards and are higher than the stated APR for staking ETH on chain. Am I not understanding how staking works or is something up with Binance? Because the fact that Voyager, Celsius, and FTX had higher than average or normal interest rates on crypto that you held or staked so this is raising some red flags for me and I'd like to hear what you guys think and maybe get a possible explanation as to why they're able to pay so much for staking rewards compared to on-chain staking.

#Blockchain #Cryptocurrencies #Business & Commerce 27 social mentions

2

Cardano

So I've thought of opening a Binance US account (I'm US based so I don't have a choice) to day trade since they have BTC trading with no maker/taker fees, but while looking into it I found one particular aspect about Binance to be quite concerning. For example they pay up to 5.20% for staking ETH, but the APR stated on the Ethereum Foundation's website is 4.40% APR. I also found that they're also paying 10.90% for ADA, while the calculator on cardano.org shows the rate is 4.6% no matter how much you stake. Then for DOT, they're paying 21.79% APR while polkadot.network states that staking on chain can get you up to 18% APR. Not only is this, but they're paying 5% APR on USDT and 6.00% on BUSD, which is much higher then even the highest US treasury bonds (ignoring I Bonds) and aren't able to be staked on-chain for rewards and are higher than the stated APR for staking ETH on chain. Am I not understanding how staking works or is something up with Binance? Because the fact that Voyager, Celsius, and FTX had higher than average or normal interest rates on crypto that you held or staked so this is raising some red flags for me and I'd like to hear what you guys think and maybe get a possible explanation as to why they're able to pay so much for staking rewards compared to on-chain staking.

#Cryptocurrencies #Blockchain #Cryptocurrency Wallets 169 social mentions