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Am curious how Compound, dX/dY, Nexo services are able to advertise such high interest rates on digital assets. Some as high as 10% APR accrued on a daily basis
by ArtWomb 6y ago
Am curious how Compound, dX/dY, Nexo services are able to advertise such high interest rates on digital assets. Some as high as 10% APR accrued on a daily basis.
- akeck 6y agoThey're all backed by algorithmic crypto trading, and thus are operating outside the banking system discussed in the article.
- ac29 6y agoFor one, because the underlying asset they are paying interest in can lose value, or even go to zero. Compound, for example, has lost 50% of its value in just a month. The crypto space is also, to say the least, extremely risky, and full of every variety of untrustworthy, unscrupulous character.