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Actually 8% is a pretty low yield for a crypto lending service. And very achievable in tradfi. Plus staking/lending was only a tiny part of their business. F

• gottorf 3y ago
  > And very achievable in tradfi. And where would you have achieved 8% yields in a liquid instrument, prior to the recent Fed rate hikes? From the end of the GFC (and the start of QE) until when the current hiking cycle began, 8% was basically the cap of junk bond yields[0]. Half the time, it was under 6%. Sure, you could probably have bought rental property or invested in a small business and come out above 8% yields, but those are highly illiquid and not comparable to deposits at FTX. [0]: https://fred.stlouisfed.org/series/BAMLH0A0HYM2EY https://fred.stlouisfed.org/series/BAMLH0A0HYM2EY
  • LatteLazy 3y ago
    6% is the average yield there for the index. Within it there are plenty of bonds paying 8, 10, 12 etc. And plenty of others defaulting. But none are ponzi schemes. The same applies to this. If someone offers you 400% it's a scam (Ponzi or otherwise). If someone offers you 8% it's risky or there is some other reason no one else has touched it. 8% is not inherently unachievable. Just good (and therefore likely there is some risk).