Binance includes Ada in phase 2 of it's lending platform 6% interest rate

https://www.coinspeaker.com/binance-phase-two-lending-platform/

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So lending ada on binance will be (potentially) more profitable than staking? There goes the game theory. I know that some people would still go with staking, but don’t forget that people love making money.

The way it looks to me at the moment, you’ll have to be quick off the mark to get into each 14 day slot and if it’s already filled you’ll either have to leave your ADA in the normal exchange account earning nothing, or have the hassle of moving it out, staking it, then moving it back in the hope of maybe making the grade next time.

trust my cardano stake to binance for a potential 1% annualised increase in return… lol… think i’ll pass… and it’s not even a close call…

why does binance want to loan my ada anyway? to play the market, to facilitate clients to play the market, to manipulate the market… what if they fuck up and become insolvent, what if some of completely unrelated part of their business causes them to become insolvent… for a potential 1% annualised return? this sounds like a good deal?

i wonder why people are even interested in crypto sometimes… silly me… it really is all about gambling for too many people

i’ll keep my ada in a hardware wallet and chance it for much larger profits in the ada lottery instead, ill gamble the potential profit rather than my whole stake thank you very much :stuck_out_tongue:

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That what I was thinking, I tried using an exchange offering 7.25 percent interest, and almost lost all my ADA when it got “hacked”. My advice don’t be greedy stake on the network this is a cross country race not 200meter.

:thinking: hmm i am not a fan of lending/or staking my dear ada coins,just gone try to buy buy more coins as i can thats my plan the up tick of the price of ada will make me smile
When all phases are done shelly,etc etc.

Why not stake, what’s the downside?

Guys remember about MtGox and many other “crashed” platforms

Dear rob must i try it out you think,
Have too many coins/can i trust all the pool out there i am little chicken you know😁

Staking does not mean trusting anyone with your coins, they don’t leave your wallet, no one has any access.

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I think this will make the stakers earn more rewards. Because the fees collected by the pools will be distributed among less stakers. I already had though that the ADA available for sale will disappear from the exchanges once staking goes live so maybe this also acts as a counter-force.

not necessarily

all stake pools will pay out differently, in a free market there will be a number of options, some providing low risk/reward others providing high risk reward

for example you could stake with a massive pool offering a small but evenly distributed reward for every vote in that pool

or you could stake in another high risk/high reward pool where the voters selected as slot leader earn a premium with double/triple/etc of that over the average earning of the rest of the pool… there are almost limitless ways payouts can be distributed and limitless levels of risk/reward

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Hi guys, I found out that Staking will not be “allowed” by exchanges and that actually this was considered already on the design of cardano, hence there is a special kind of addresses for this purpose:

“Enterprise address: Staking is not possible. This address type is meant for exchanges, who are not supposed to use funds entrusted to them for protocol participation.”
from: https://staking.cardano.org/en/

This means Binance would not be expected to earn profits by staking someone else’s ADA.
This makes my point that ADA kept on the exchanges won’t be participating on the staking process, thus more rewards for those who do delegate their ADA holdings.

Keep in mind “all I have ever seen” consists of two years. Fundamentals will drive price of Cardano and fundamentals take time.

Lending rates could be a problem if they discurage users from PoS participating and could even be viewed as a type of attack on PoS security. A user wanting to double spend could offer 15% interest and stake himself. If he/she has say 10% of all ada and manages to conving say 40% of holders of ada to lend to him/her suddenly you have a majority to gain 100% of all ada at cost of 15% of an epoch reward (likely less than 1% of all ada). The only reason why not would be that ada would fall in price if this was to happen. Then again it could be used to slowly siphon away founds say 2% while spending 1% per so to do such. I think for this reason it is wise exchanges are not allowed to stake as they are in a position to both gain 10% of ada and encourage lending of ada from users.

Game theory wise staking pools need to have more incentives to stake than to lend ADA.

Using an enterprise address is optional. It would be up to the community to pressure exchanges like Binance to utilize Enteprise addresses, but it’s not required. Binance could use a wallet like everyone else and stake the ADA they are holding if they wanted to.

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Hi @Khicu, Please try to keep the discussion on the subject at hand. There are other threads for the price drops and that other stuff.

you are absolutely right! I did notice that too! I even think there would be a way to identify some of the addresses the exchanges use (using tracking and that kind of stuff) so we can know if they are staking or not.

for example, this is one of the identified Binance’s accounts:
DdzFFzCqrhtBatWqyFge4w6M6VLgNUwRHiXTAg3xfQCUdTcjJxSrPHVZJBsQprUEc5pRhgMWQaGciTssoZVwrSKmG1fneZ1AeCtLgs5Y
currently holding:
37,807,321.941675 ADA

check this info at:
https://adascan.net/address/DdzFFzCqrhtBatWqyFge4w6M6VLgNUwRHiXTAg3xfQCUdTcjJxSrPHVZJBsQprUEc5pRhgMWQaGciTssoZVwrSKmG1fneZ1AeCtLgs5Y/

This is a rich-list which is cool too:
https://adascan.net/rich-list/

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@Khicu Sure man, no problem.

Are you paying attention to the market at all? The entire market dipped. Are you going to go to the other 200 forums for every other crypto and post about how people have lost money too? And if you are going to make a public post, don’t cry about it when people reply to you.

You can’t @Khicu until you log out get dressed and come back with clothes on. Then when you log in you need to post in the introduce your self section etc. That attitude will give you your first like. Holding thumbs for you. Good luck.