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1. Genesis is/was one of the bigger "yield farming" (read: unsustainable Ponzi) companies out there. They're also one of the larger units of DCG, a crypto cong
by rippercushions 4y ago
1. Genesis is/was one of the bigger "yield farming" (read: unsustainable Ponzi) companies out there. They're also one of the larger units of DCG, a crypto conglomerate with its fingers in all sorts of pies, so Genesis collapsing does not bode well for the rest of that group.
2. They're primarily notable for running the Earn program for Gemini, one of the larger and (by crypto standards) more reputable exchanges out there, run by the Winklevoss twins of Facebook fame. Lawsuits and regulatory investigations are already coming in thick.
3. 2022 saw the crypto boom rapidly turn to bust and the dust has nowhere near settled yet.
- SilasX 4y ago1. Genesis was not a yield-farming company, but a centralized lender. "Yield farming" refers the use of smartcontracts that generate yield [A]. Furthermore, yield farming is not inherently Ponzi. For example, there are overcollateralized lending protocols like Compound and Aave that allow you to put crypto in a smartcontract in return for a yield, usually < 3%. The returns come from a cut of the loan interest, where the loans are liquidated if the collateralization ratio gets too high. I know, everyone rolls their eyes about the distinction, since they're all "Ponzis" (a term itself used imprecisely), but if you're going to make a comment specifically intended to fill in vital context, you should be more careful with the facts than a general opinion post. [A] https://decrypt.co/resources/what-is-yield-farming-beginners-guide https://decrypt.co/resources/what-is-yield-farming-beginners...