A tweet they posted (NB the twitter account hasn't tweeted since April 2021:
> 10% APY on all of your $USDC 6.5% APY on all of your #Bitcoin No min. No max. No tiers.
The fantasy world these guys must weave to justify this multi party ponzi.
Here is a tweet, in fact the last one Gensis retweeted from someone explaining how Genesis can justify such yields as a sustainable
https://twitter.com/web3breakdowns/status/150988072870791168...
In short it's "because its new and cool and different".
If it were true the yield would be constantly variable, not fixed for a start. Lending rates would surely be more volatile than extant money markets given the risk. A component in a ponzi is rationalisation to the client regarding the magical money making sources.
They might have had a lot of loans out there, but the fact is they were lending to con men who were giving their clients similar yields in a game of musical chairs that left a lot of people with no place to sit when the music stopped.
At some point there are 3 options
1. these people do not understand the (not very complex) flow of financial markets
2. They do understand the flow and know they are in a limited lifespan scam and hope to personally skim off the top before it crashes (as was the case with luna/terra). The operators have limited risk compared with clients
3. they have become so enamored of the unfounded pseudo-economics of the industry that they believe it will all work out fine somehow (delusion). Mechanism TBD
> 10% APY on all of your $USDC 6.5% APY on all of your #Bitcoin No min. No max. No tiers.
The fantasy world these guys must weave to justify this multi party ponzi.
Here is a tweet, in fact the last one Gensis retweeted from someone explaining how Genesis can justify such yields as a sustainable
https://twitter.com/web3breakdowns/status/150988072870791168...
In short it's "because its new and cool and different".
If it were true the yield would be constantly variable, not fixed for a start. Lending rates would surely be more volatile than extant money markets given the risk. A component in a ponzi is rationalisation to the client regarding the magical money making sources.
They might have had a lot of loans out there, but the fact is they were lending to con men who were giving their clients similar yields in a game of musical chairs that left a lot of people with no place to sit when the music stopped.
At some point there are 3 options
1. these people do not understand the (not very complex) flow of financial markets
2. They do understand the flow and know they are in a limited lifespan scam and hope to personally skim off the top before it crashes (as was the case with luna/terra). The operators have limited risk compared with clients
3. they have become so enamored of the unfounded pseudo-economics of the industry that they believe it will all work out fine somehow (delusion). Mechanism TBD