Celsius Wallet offering higher Yield

Hello community,
If I may bring this to your attention, Celsius wallet is now offering a better APY to stake my AAVE (7.5% versus 6.14%). Can we start a conversation about increasing Total Emissions per day to match this? Otherwise, stakers will be incentivized to move their funds to Celsius. Let me know what you all think. Thank you.

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Can see it as a premium for the risk of entrusting centralised entity with your funds :)

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That’s a very good point. But I should add that Celsius is insured, albeit centralized, so any lost funds will be recovered. Additionally, staking with AAVE is subject to the rare event of a 30% slash, which is why the Total Emissions originally increased from 400 to 550 AAVE/day. But I further posit it would be best to increase >550 and at least match Celsius’ 7.5% so that users are not incentivized to withdraw funds to chase higher (and dare I say safer) yield with Celsius. Thoughts?

TLDR; Celsius is centralized but insured, therefore not subject to a 30% slash. Total emissions of AAVE/day should increase to at least match Celsius’ 7.5% APY.

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Insured is a meme. They insure their cold wallet fund but most of the fund are lent to counterparty which are not insured.

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This.

I do use Celsius and Nexo, to a relatively small extent, as they offer some useful features. I never took there claims about insurance at face value though. It will take a few actual precedents before I’m convinced it’s not empty marketing.

Same goes for “regulated and compliant”.

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Hmm. It’s demand and supply that determines the rates. Even if the daily emission was reduced to 300 aave a day, people will pull out funds until the yield is worth the risk, which is around 6% as per the market.

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I see, that makes sense. Thanks for clearing that up.

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