[cdiddy2]

ya I don't think they were a ponzi themselves but they lost money to both 3 arrows capital and in the ftx collapse.

https://decrypt.co/114778/genesis-suspending-client-withdraw...

https://www.coindesk.com/business/2022/06/29/genesis-faces-h...

[rippercushions]

You cannot offer 10% APY on a stablecoin like USDC that by definition does not increase in value or pay dividends without getting that 10% from somewhere else, namely other customers' funds.

[BLKNSLVR]

It's from interest on loans as far as my understanding goes. As safe as ... the companies taking out the under-collateralised loans...

[superjan]

Couldn’t you make the same argument about fiat currency? Both in regular finance and in defi there exist funds that do high stakes gambles with other people’s money.

[easytiger]

That's why i called it a "multi party ponzi". They had to know their largest borrowers were not above board. FTX promised large no risk returns for deposits in turn. Except FTX didn't even have the plausible excuse of lending money. One of the stablecoins promised an infinite money making circle of lending->profit. 3AC's trading model was to borrow at these high IRs and gamble it (i don't for a second believe they had a risk based trading strat) and hope it paid off and skim off the top. See my 3 possibilities above.

The company founders even had a flight plan to non extradition treaty countries. Where they now reside