Replacing 2nd bank by Gnosis Pay + Zeal + CHF stablecoins

M

manu

New member
Hi all!

I am new in this forum but would like to share something that i am testing at the moment. I was looking for something like Neon or Radicant that could also produce benefits on the money stored in the account. At the same time i was looking for a solution that involved the use of self-custody crypto for stablecoins for regular payments. I think i have found this combination by using the Gnosis Pay card (https://gnosispay.com/) (which provides cashback for any purchase done with it) and the self-custody Zeal wallet (https://www.zeal.app/) (a project created by a team that was also behind Revolut). With Zeal you can store you CHF stablecoin (Frankencoin) with an APY of 3% per year and you can transfer the CHF stablecoin to your card anytime to use the money as with any Visa card. So with this combination, i get a cashback that could range from 0% to 5% on each purchase done with the card, and then the money that i am not investing elsewhere is still producing some benefits through the APY of 3% per year. The card is in EUR, but the conversion is at the market price with 0 fees, so basically you could pay anywhere that VISA is accepted without any conversion fee and, as a bonus, you have the cashback.

One of my concerns for next year is about how to report this in the taxes...

So i was wondering if anybody has a similar experience or what are your thoughts on this strategy.

Have a great day!

Thanks!
 
Hi,

I don't know either of these two services, but the returns seem quite high.
Who would give out 3% returns per year on a CHF stablecoin? That seems unsustainable, no?
 
My understanding is that you are lending your crypto to provide liquidity to the specific stablecoin market to be able to perform operations with the stablecoin in the DeFi ecosystem. But your crypto is used as collateral, meaning that you have access to it all the time (different from when you do a deposit thought the traditional banking system when you don't have access to the money until the deposit period is over). Of course there is the inheritance risk of the crypto market volatility implied in the whole thing, but there are ways to reduce that risk and take a more conservative approach (eg. using well stablished platforms and long running stablecoins) while still getting money back. Again, i am still learning but i found that this was an interesting approach to share for those looking for different approaches to traditional banking and who are willing to assume the risks that come with crypto investments of course.

I found this article quite interesting for those willing to learn more about DeFi, Yielding, the use of collaterals and how your have achieve those high returns. https://molecula.io/blog/defi-understanding-apy
 
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