HODL (earn interest on assets)
These platforms focus primarily on helping HODLers to grow their crypto assets. This is typically achieved through lending, liquidity mining, staking, and managed trading services.
The platforms may be CeFi, DeFi or even hybrid (e.g. platform has custody of assets but deploys them in DeFi space for liquidity mining).
All of these platforms require clients to entrust their assets with them to generate returns. Please perform proper research from multiple sources before deciding to trust any platform with your assets.
In particular, find out about:
- business model of the platform and how is yield generated.
- risk management and loss mitigation measures
- security against hacks
- insurance against hacks and counter-party risks.
- indemnity of the platform in events of losses or insolvency
- licensing and regulatory oversight
Even with proper research, things can still south as the platform may be lying or be making misleading statements. See the failed platform case study in a later section below.
Also see the blog post on distressed platforms that are covered on this site.
List of HODL focused platforms covered on this site
Failed HODL Platform
Stablegains
Founded by Ryszkowski and Emil Dalgård Rasmussen, Stablegains, backed by Y Combinator and a suite of angel investors, quickly expanded after its August 2021 debut.
Marketing pitch:
“Earn a stable 15% APY interest with our simple savings account. No hidden fees, no minimum balances, no commitment periods.”
Stablegains claimed to have diversified entrusted funds with a variety of stablecoins; mainly USDC, along with DAI and UST. In fact, they converted all investors' funds into UST and deposited them into Anchor Protocol, the decentralized lending market on the Terra blockchain.
When the UST stablecoin collapsed in May 2022, Stablegains announced that its 4,878 customers would likely lose most of the $47 million they had entrusted to the company.
Stablegains have since announced to discontinue operations.