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Tether now offering 30% interest on USDT deposits

ThrowITout4321 4y ago
This is nuts. Is Tether failing too? This crap is way too complicated for a mere mortal.
- deleted 4y ago
  [deleted]
- Trasmatta 4y ago
  It was depegged earlier this week. It will certainly fail eventually, but they may manage to keep the "party" going for awhile longer.
  - anamax 4y ago
    Tether's "peg" has long been more of a guideline than a fact. For example, Tether traded as low as $0.95 and as high as $1.40 in 2021.
version_five 4y ago
It will be interesting to see how many takers they get. A market-agreed-upon interest rate implies a default probability. 30% already implies a relatively high one, we'll see if the market supports it.
- Proven 4y ago
Grimburger 4y ago
They are offering a higher rate on USD. Make of that what you will. I used to lend 5 years ago on polo and these fluctuations happen. Best I got was 25%, it lasted a few days. Poloniex is now bigger than ever too. Bitfinex is a money printing machine. They aren't going bankrupt anytime soon.
1270018080 4y ago
Risk and return are directly related. So, 30%, not looking good for Tether's ponzi either.
codefreeordie 4y ago
Oof. One does not offer 30% interest when one has access to capital any other way. Methinks that Tether is not as healthy as they would have you believe. For myself, I am not interested in any asset promising me 30% zero-risk returns. I know enough to know that is not a thing.
- Grimburger 4y ago
  It's funny how badly people understand the mechanisms here. Bitfinex is not offering that. It's peer to peer lending on crypto exchanges. Some random person is offering that. I can go on there right now and create an offer of 150% APR for USDT, then screenshot it, go on twitter and claim the sky is falling. All for the cost of a few dollars.
  - teedeepee 4y ago
    You could have made the same point without the first sentence. As per HN's guidelines: > Be kind. Don't be snarky. Please don't sneer, including at the rest of the community.
    - Grimburger 4y ago
      I don't see any snark nor sneer in my comment. Sorry if it offended anyone. Comments in this thread clearly seem to think that bitfinex is paying them those rates when that's not how it works at all. Bitfinex is the middleman. You can offer any rate you want right now for any lending products on their website and that will appear. If anything I'd say this is an opportunistic marketing ploy by them. Those rates won't hold. I've went through a big automated crypto lending phase and they never hold up for any significant period of time yet do spike like this regularly. It's either revert to mean or bust. You choose which one you think it is.
  - throwaway290 4y ago
    It feels like some market participants are offering 30% interest rate to attract capital to Tether to prevent/compensate for mass selloff. I'm surprised it is only 30% and not more, once USDT starts losing value it will death spiral to nothing and tank the larger market as well, which would be a bigger loss for all players therein.
icedistilled 4y ago
how can that not be ponzi scheme?
- SparkyMcUnicorn 4y ago
  Since when was lending and borrowing a Ponzi?
  - jqpabc123 4y ago
    The "Bernie defense"?
nly 4y ago
Can anyone independently verify this?
jqpabc123 4y ago
So USDT has gone "full Bernie"?

This is nuts. Is Tether failing too? This crap is way too complicated for a mere mortal.

deleted 4y ago
[deleted]
Trasmatta 4y ago
It was depegged earlier this week. It will certainly fail eventually, but they may manage to keep the "party" going for awhile longer.
- anamax 4y ago
  Tether's "peg" has long been more of a guideline than a fact. For example, Tether traded as low as $0.95 and as high as $1.40 in 2021.

It will be interesting to see how many takers they get. A market-agreed-upon interest rate implies a default probability. 30% already implies a relatively high one, we'll see if the market supports it.

Proven 4y ago

Grimburger 4y ago

They are offering a higher rate on USD. Make of that what you will. I used to lend 5 years ago on polo and these fluctuations happen. Best I got was 25%, it lasted a few days. Poloniex is now bigger than ever too. Bitfinex is a money printing machine. They aren't going bankrupt anytime soon.

1270018080 4y ago

Risk and return are directly related. So, 30%, not looking good for Tether's ponzi either.

codefreeordie 4y ago

Oof. One does not offer 30% interest when one has access to capital any other way. Methinks that Tether is not as healthy as they would have you believe. For myself, I am not interested in any asset promising me 30% zero-risk returns. I know enough to know that is not a thing.

Grimburger 4y ago
It's funny how badly people understand the mechanisms here. Bitfinex is not offering that. It's peer to peer lending on crypto exchanges. Some random person is offering that. I can go on there right now and create an offer of 150% APR for USDT, then screenshot it, go on twitter and claim the sky is falling. All for the cost of a few dollars.
- teedeepee 4y ago
  You could have made the same point without the first sentence. As per HN's guidelines: > Be kind. Don't be snarky. Please don't sneer, including at the rest of the community.
  - Grimburger 4y ago
    I don't see any snark nor sneer in my comment. Sorry if it offended anyone. Comments in this thread clearly seem to think that bitfinex is paying them those rates when that's not how it works at all. Bitfinex is the middleman. You can offer any rate you want right now for any lending products on their website and that will appear. If anything I'd say this is an opportunistic marketing ploy by them. Those rates won't hold. I've went through a big automated crypto lending phase and they never hold up for any significant period of time yet do spike like this regularly. It's either revert to mean or bust. You choose which one you think it is.
- throwaway290 4y ago
  It feels like some market participants are offering 30% interest rate to attract capital to Tether to prevent/compensate for mass selloff. I'm surprised it is only 30% and not more, once USDT starts losing value it will death spiral to nothing and tank the larger market as well, which would be a bigger loss for all players therein.

icedistilled 4y ago

how can that not be ponzi scheme?

SparkyMcUnicorn 4y ago
Since when was lending and borrowing a Ponzi?
- jqpabc123 4y ago
  The "Bernie defense"?

nly 4y ago

Can anyone independently verify this?

jqpabc123 4y ago

So USDT has gone "full Bernie"?