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> I get 5-8% interest on it and hasn't had an issue for its handful of years of being issued. I agree that GUSD is a good, low risk stablecoin choice, but that
by xur17 4y ago
> I get 5-8% interest on it and hasn't had an issue for its handful of years of being issued.
I agree that GUSD is a good, low risk stablecoin choice, but that's only if you directly hold it. If you're depositing it into an interest earning account, note that you're taking on additional lending risk (which I'd highly recommend against right now).
- andirk 4y agoAgreed! I do hold it all in my earning account and if borrowers skip town, then I lose. I treat it as a low risk/low reward in my portfolio. Coincidentally, my "earnings" I pulled out recently was almost the exact opposite amount of current inflation so it's like a hedge against inflation.
- xur17 4y agoIf you're holding it on Gemini Earn, I highly recommend withdrawing, even if only for the next few months. Gemini Earn deposits into Genesis Trading, and they have admitted to having direct exposure to FTX ($175M [0]). While they can likely weather that loss, I have concerns about other indirect exposure they may have in the coming weeks. I don't think we've seen the end of the FTX story. If I were you, I'd take the money out yesterday, and hold it in either US Treasuries (6 month pays 4.45%), or put it into a liquid money market while this all blows over. The extra couple of percentage points you'll earn does not at all seem worth the elevated risk right now. [0] https://twitter.com/GenesisTrading/status/1590836594382032896 https://twitter.com/GenesisTrading/status/159083659438203289...