Is StableGains a Good Investment
Table of Contents
Update:
Stablegains has been discontinued its services as per their website as of July 2022. They have recommended to withdraw existing funds.
What is Stablegains?
Stablegains is a digital finance or DeFi company that provides a higher yields for investors. At the time of this article, they are providing 15% APY daily on your savings with them. Your funds are never locked and can be withdrawn. As per their website, it has been registered in United States and finCEN registered. You can use this investment through their website or mobile app available both in App store and Google Play store.
You can deposit to Stablegains directly by
- Making an ACH transfer through your bank
- Sending a wire transfer through your bank
- Transferring USDC.
You can withdraw your investment using the same ways mentioned above and they process the withdrawal request within 24 hours.
Stablegains is available in the following states as of now:
- California
- Colorado
- Delaware
- Idaho
- Illinois
- Kansas
- Maryland
- Massachusetts
- Montana
- New Hampshire
- North Dakota
- Oklahoma
- Pennsylvania
- South Carolina
- Tennessee
- Utah
- Virginia
- West Virginia
- Wisconsin
- Wyoming
Is Stablegains Safe to Invest
As per their website, Stablegains is not a bank, and as such is not eligible for FDIC insurance. Promised interest rate of 15% APY yield from Stablegains is lucrative but there can be risks with this investment. One of my main concern in investing with Stablegains is they are not FDIC insured. I personally check for FDIC insured investments to make sure my investment is safe.
But as the saying goes, rewards come with risk and there may be a risky investors who would be interested in this offer.This investment works based on Anchor Protocol where investments are protected by over collateralizing. So if the borrower is not able to repay, lending protocol will sell their collateral to get the liquidity to pay the lenders.
Stablegains Referral Program
They also have a referral and affiliate program which offers 0.5% APY for an year if you signup a referral to them. I couldn’t find any information if you can be just an affiliate with them and earn the referral interest without investing.
There are other DeFi or Lending clubs with a less risky options if you would like to explore more on this kind of investment. Let me know in comments which investment option worked best for you.
Stablegains: A Defunct Cryptocurrency Lending Platform
Stablegains was a cryptocurrency lending platform that offered users high yields on their deposits. The platform was founded in 2021 and was backed by several prominent venture capitalists. However, Stablegains was discontinued in May 2022 after the collapse of the TerraUSD (UST) stablecoin.
How Stablegains Worked?
Stablegains users would deposit cryptocurrencies like Bitcoin and Ethereum into the platform. Stablegains would then lend these cryptocurrencies out to borrowers, who would pay interest on the loans. Users would earn a portion of this interest, which was paid out in the form of the cryptocurrency that they deposited.
The Collapse of UST
UST was a stablecoin that was supposed to be pegged to the US dollar. However, in May 2022, UST lost its peg and plummeted in value. This caused a run on Stablegains, as users rushed to withdraw their deposits. Stablegains was unable to meet the demand for withdrawals and was forced to discontinue operations.
The Aftermath of Stablegain’s Collapse
The collapse of Stablegains was a major blow to the cryptocurrency industry. It also led to losses for many users of the platform. Some users have accused Stablegains of fraud, alleging that the platform was insolvent long before UST lost its peg.
What Can We Learn from Stablegains?
The collapse of Stablegain is a cautionary tale for investors in cryptocurrency. It is important to do your own research before investing in any cryptocurrency lending platform. You should also make sure that you understand the risks involved in lending cryptocurrency.
Here are some additional things to keep in mind:
- Only invest money that you can afford to lose.
- Diversify your investments.
- Don’t invest in anything that you don’t understand.
Stablegains was a promising platform that had the potential to revolutionize the way that people earn interest on their cryptocurrency. However, the collapse of UST led to the platform’s downfall. This serves as a reminder of the risks involved in investing in cryptocurrency.
Final Thoughts
In this choppy market, Stablegains 15% return is very impressive but it’s a question if this can be sustainable for a long term. Only time will tell how good this investment is going to turn out and the company’s growth will depend on it.
