I was reading on crypto staking, more precisely Defi-Staking on Binance: https://www.binance.com/en/defi-staking

While I am not a native english speaker I could understand that there is no risk in staking, but what's the catch? I mean Binance says I can get up to 9% in one single day, but if it's only about profit then why doesn't everyone simply do it and become 10% richer everyday? I think I am messing something here, please note I am totally new to crypto.

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2 Answers 2


You are misunderstanding the returns. A return of "Est. APY" means the estimated return per year - APY means Annual Percentage Yield. So by staking you would gain that much per year, not per day.

Furthermore, the risks associated with staking are quite different than what you may be used to in the traditional banking world.

In DeFi, especially in Ethereum DeFi, the biggest risk is probably related to smart contract security. If a bug or vulnerability is found in the code of the staking platform, it may result in you losing all your staked assets with no possibility to get the assets back.

The following answer is about DeFi lending, but as far as I can tell, DeFi staking and DeFi lending are basically the same thing: What are the risks of DeFi lending?


"There is no risk in staking"

If there is profit there is always risk. Non-risk yield, which beat inflation by visible margin, does not exist in this world, or it would be a money printer and we all would be driving lambos for free.

Only the nature of the risk varies: likelihood of happening and impact (lost principal, lost interest, etc.).

  • 1
    "Non-risk yield does not exist in this world" - if you discount really corner cases like "world got hit by asteroid and everything get wiped out", there is a concept called risk-free interest rate. It is just low enough to be generally below inflation. I would amend that statement to say "there are no non-risk yields which beat inflation by visible margin". Commented Mar 9, 2021 at 9:04
  • Very good point @ArturBiesiadowski! I will use your words in the future. Commented Mar 10, 2021 at 7:38

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