So there is certainly risk in lending your funds. This is why rates paid on stable coins have been dropping recently. However it’s becoming more efficient, spreads are tightening, and the easy money is fast disappearing by the people borrowing funds. Crypto is capital intensive as you physically settle everything in real time. There are unknowns as to how a large default would be distributed by Gemini as well.Įveryone in that chain is taking a cut as well, so the rate being paid by the last borrower is higher, which means they are taking more risk. Simple example as to how there are multiple layers of risk beyond your, Gemini, and Genesis control which you have no visibility into. You ask for your money and they pass that 70 to you. Gemini asks for its collateral back and Genesis says sure, here is your 70 cents. By the time they liquidate they only get 70 cents for each dollar. Gas is sky high and the market is tanking, so it takes time. Because they are using best practices, this collateral is in a cold wallet that needs to be transferred. Genesis then goes to liquidate the collateral that was posted. Genesis asks for its money back, but XYZ says sorry I don’t have it. XYZ makes a leveraged bet that wipes it out (Ex: UST will repeg). Genesis Trading then lends it to crypto fund XYZ. For more information, see the Terms of Service for Bitcompare and our Risk Warning.Gemini loans the GUSD to Genesis Trading. Links to third-party sites are not under the control of Bitcompare, and we are not responsible for the reliability or accuracy of such sites or their contents. Before making any investment, you should carefully consider your investment experience, financial situation, investment objectives, and risk tolerance, and consult with an independent financial advisor. The information on this page is not meant to be a sign from Bitcompare that the information is correct or reliable. The APR is adjusted daily, and the estimated rewards may differ from the actual rewards generated.
It does not display the actual or predicted returns or yields in any fiat currency. Any APR shown is a rough estimate of how much cryptocurrency you will earn in rewards over the time period you choose.
You are the only one who is responsible for the money you invest, and Bitcompare is not responsible for any losses you might have. I figure that I might as well take advantage of the current dip in the entire market and while others panic and worry, Im here gobbling up more cryptos and getting them for a nice price. The value of your investment can go down or up, and you may not get back the amount invested. Well, I made another small GUSD redemption from earn yesterday and less than 24 hours later, the GUSD was converted to USD and now shows up in my account. Warning: The price of digital assets can be volatile. When you leave a comment on this site, it will not show up until a Bitcompare administrator approves it. Additionally, the opinions expressed by the commenters do not necessarily reflect those of Bitcompare or its staff. Keeping USD in Gemini to reinvest the money in Gemini Earn (GUSD specifically) in the future. Still, Im not sure why someone would keep large amounts of cash on Gemini for any extended periods. The opinions expressed here are the author’s alone. So yes, its arguably as safe as depositing with any other FDIC-insured institution. Bitcompare does not look at or list all companies or products on the market.Įditorial disclosure: The editorial content on Bitcompare is not provided by any of the companies mentioned, and has not been reviewed, approved, or otherwise endorsed by any of these entities. The problem is that when you signed up for Earn, the custody of your GUSD got transferred outside of Gemini, so now only that third party has the ability to redeem the GUSD (and most likely has already done so upon receiving the loan). Information about products may also be placed based on other factors, such as the ranking algorithms on our website. GUSD is still provably redeemable 1:1 to this day as long as you have the tokens. This relationship may affect the way and where products appear on the site, such as in what order they are listed in categories. The business opportunities that can be found on this site are offered by companies with which Bitcompare has made deals. 0x (ZRX) Stellar (XLM) TrueUSD (TUSD) Gemini Dollar (GUSD) Multi-Collateral DAI (MCDAI) Paxos (PAX) USD Coin (USDC) Tether (USDT ERC20) True Great Britain. 11332964 Registered Office: Unit 3 Mitcham Industrial Estate, 85 Streatham Road, Mitcham, United Kingdom, CR4 2AP.Īdvertiser disclosure: Bitcompare is a comparison engine that relies on advertising for funding.
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