That's totally fair. Risk is 100% the right concern to have when you hear about higher yields
We have a pretty comprehensive blog post about these assets (floating-rate agency MBS) and why we think they are a much better fit for startup treasuries. I encourage you (and anyone else reading this) to give it a read so that you understand exactly how they work and what the tradeoffs are: https://www.palus.finance/info/safety
That said, we understand not everyone wants to spend their day reading our blog posts. So the best tl;dr we can give is that the higher yields do not come with a credit risk, but instead with 1-2 days of liquidity cost versus same-day for MMFs. Which is much more ideal for a startup's idle cash
We have a pretty comprehensive blog post about these assets (floating-rate agency MBS) and why we think they are a much better fit for startup treasuries. I encourage you (and anyone else reading this) to give it a read so that you understand exactly how they work and what the tradeoffs are: https://www.palus.finance/info/safety
That said, we understand not everyone wants to spend their day reading our blog posts. So the best tl;dr we can give is that the higher yields do not come with a credit risk, but instead with 1-2 days of liquidity cost versus same-day for MMFs. Which is much more ideal for a startup's idle cash