I've said it before - randomly backed stablecoins that 'earn 20%' are absolutely not worth the risk - ever.
If you do something like deposit your your $USDC to get whatever 'stablecoin' or you sell your $USDC to buy some bizarre and randomly backed 'stablecoin' to 'earn 20%' you are making an absolutely terrible trade.
You are risking a 100% price decrease (total de-peg) for at maximum a 20% increase that takes at least 1 year to achieve.
That is awful R:R
Moreover, you could easily get 5% on that USDC anyway - so it's only 15% with this scenario.
I am using made up numbers to just prove the point btw.
Be careful with @FalconStable
I’m just going to say it since others haven’t posted this on here yet although it’s widely known. Falcon Stable holds tens of millions of dollars in bad debt and is a scam;
•Their “stablecoin” is backed by illiquid assets and holds tens of millions in bad debt as a result, and will likely be put into more
•It’s effectively an exit scheme for large baggies of some of the collateral tokens that they have deals with (including Move lmao) to extract money from retail (DWF/Rushi tag team at it again!)
•They are paying yield to users with zero clear revenue, even promising funds 40% apr deals (lol) to draw in liquidity for this
Here is a risk report by the llamarisk team highlighting these fundamental risks
Be very aware of the risks associated if you plan on or have deposited any funds here, this is not to discourage from playing this Ponzi, just to cast awareness that it is one
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