People who want 1 fund == $1 get savings accounts and/or money market funds (depending on their risk tolerance. Savings Accounts are safer but earn less. MMFs have fewer regulations and can therefore offer slightly better rates but for that extra risk).
Anyone promising 7% returns is lying to you. That's far above what even the "riskier" MMFs offer.
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Anyway, USDC is just a really weird bond market, where you end up offering loans (which are called "stakes" for some reason) to shady companies at far below market rates (ex: CCC Debt was 10% APY to 16% APY if you bought it on the open market. But if its "Staking" with BlockFi, it only earns 7%). Instead of thinking if these companies would return their money back, people handed money over-and-over to these other companies and wondered why it didn't come back.
If you really want to lend money to shady companies, I suggest finding rated bonds (even junk bonds) and playing with that instead.
If you just turn USD into USDC, you end up losing money, because savings accounts are at 3% these days (https://www.capitalone.com/bank/savings-accounts/online-perf...).
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People who want 1 fund == $1 get savings accounts and/or money market funds (depending on their risk tolerance. Savings Accounts are safer but earn less. MMFs have fewer regulations and can therefore offer slightly better rates but for that extra risk).
Anyone promising 7% returns is lying to you. That's far above what even the "riskier" MMFs offer.
-----------
Anyway, USDC is just a really weird bond market, where you end up offering loans (which are called "stakes" for some reason) to shady companies at far below market rates (ex: CCC Debt was 10% APY to 16% APY if you bought it on the open market. But if its "Staking" with BlockFi, it only earns 7%). Instead of thinking if these companies would return their money back, people handed money over-and-over to these other companies and wondered why it didn't come back.
If you really want to lend money to shady companies, I suggest finding rated bonds (even junk bonds) and playing with that instead.