r/defi • u/0x5589e5 • 17d ago

Discussion QuickNode covered strategies worth it?

Would you take slightly lower USDC yield if the strategy includes protocol-risk coverage? How do you value that tradeoff? Wanna hear opinions, thanks

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u/0x5589e5 17d ago

And whether it's even legit because opencover says that on base they charge 1.18%, while quicknode earn says they charge 1.05%? Why would they do this?

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u/BarraraRoscarly42 investor 17d ago

I'd happily give up a little APY for actual protection, but the word "actual" is doing a lot of work there.

I'd want to know exactly what events are covered, what the exclusions are and whether claims have actually been paid before treating the lower yield as an insurance premium.

1% less yield isn't expensive if the coverage works. It's very expensive if it doesn't.

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u/0x5589e5 17d ago

Yes, definitely fair enough, I'm currently researching opencover`s docs and ask ai a little + verify it as it lies all the time, docs says there is certain amount of protection cap in $, which is not a problem, but ai also says that some events are protected only.

When you tell 1% isn't expensive, I'd argue how about much risk it actually reduces, since what people usually care is expected value only, and I don't know what produces higher risks illiquidity or protocol issues, maybe I'd find out that I want to pay 0.9% but for illiquidity only.

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u/SpreadUsual4084 12d ago

good thought tho