Hey gents!
I hold some DASH coins and since I don't own 1000 to run a masternode, I stake them on Binance. I wonder how can Binance pay me 7.12% interest on my coins when the ROI is around 5.6%-5.8% according to some online websites. True that I need to lock them for 90 days, but even so they pay more than they get if they are running a masternode with my coins. I know they are running a business and they need to make a profit not to lose money.
Are they privileged somehow or am I missing something else here.
Thanks!
You are right. Binance gives annual interest of 17.67% on locked DASH staking for a period of 10 days. Masternode annual ROI(in DASH coins) is about 5.78%. Such huge difference between locked staking interest and masternode ROI is possible only if locked DASH is using not for running masternodes,but for trading. Simply, DASH market is pretty much dead.With just 1-2000 coins sell you can ruin the market. 17.67% annual interest is about 0.48% for a period of 10 days.So ,Binance has only to push prices of DASH down for more than 0.5%(or $0.62) for a period of 10 days to make money.
Dash price is constatnly declining for 3 years,it is going down whether BTC goes up or down,Buy orders are empty and pushing price further down(more than 0.5% in 10 days) is not big problem or risk.