After Coinbase announced that Coinbase wallet users holding USDC can now earn an annual percentage yield (APY) of 4.7%, Arthur Hayes took to social media to highlight the appeal of USDE’s much higher APY of 29%.
Hayes mocks Coinbase’s conservative approach to stablecoin rewards
This week, San Francisco-based exchange Coinbase introduced a new bonus for US Dollar Coin (USDC) holders using their wallet. “Introducing USDC Rewards in Coinbase Wallet,” the company said on X. “For the first time, earn 4.7% APY with USDC Rewards by simply holding USDC in your on-chain wallet.”
Along with the announcement, Coinbase released a video explaining the feature and noted that users can get started by updating their mobile app to the latest version and checking their USDC balance. Following this announcement, Bitmex co-founder Arthur Hayes took to social media to boast about Ethena’s USDE APY. “To hell with your 4.7% delivered in US dollars ([Ethena Labs]) offers 29%. Don’t be stupid,” Hayes joked.
Not everyone agreed with Hayes’ comment. “With all due respect, there is a big difference between locking your USDC in a protocol with potential risks and simply storing it in your wallet to earn rewards,” one user X responded to Hayes. “It’s unfair to compare the two and comments like these seem rather dismissive than constructive.”
Hayes responded to the criticism by stating:
With all due respect, you are a hell of a piece of shit. Just yolo and ugh!
Someone else chimed in and asked Hayes if he still had a stake in WORM. “Yes sir,” replied the Bitmex co-founder. “But I wouldn’t tell you when I’ll sell, so I don’t trust too much of what I say.”
Another person asked Hayes about his US dollar holdings, saying: “To be honest, would you keep all your assets in US dollars? Remember that with the last bull and previous bulls there is always a stable situation in which chasing 29% can be a very costly mistake for many.”
Hayes responded and said:
You can view the chain of my doxed wallets and see the amount of sUSDE stored. I use USDC and USDT because they are the more widely accepted forms of collateral for trading. But since [Ethena Labs] the team continues to receive more integrations, my need for other stables is decreasing.
The clash between convenience and high-risk returns echoes past events in the crypto space. While the Coinbase option is considered by some to be reliable and secure and may appeal to cautious investors, for some observers Hayes’ pursuit of high-yield returns from USDE brings back memories of the Terra blockchain and the collapse of UST. Anchor once promised a 20% APY before failing, reminding everyone that the pursuit of high rewards often comes with significant risks.
