My guess would be they are staking UST (stable coin) on Anchor Protocol. The staked funds are lent to traders. Thats how they can promise such high returns sinc

My guess would be they are staking UST (stable coin) on Anchor Protocol. The staked funds are lent to traders. Thats how they can promise such high returns since 20% a year is only 0.055% per day. Traders will typically trade positions with a risk to reward ration of 1:1.5 or higher. These fees are negligible at this point for a position that will take a few hours or days to close. This is how you can trade with leverage on exchanges. Risks are protocol exploit or depegging of the staked coin.