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Comment by bradly | Hacker News Reader

Is Dai similar to Gemini's GUSD stable coin? It too is backed by Etherium. I think Gemini is paying 8 or 9% APR for holding. Where is that money coming from? Are they loaning out for a higher rate than that?

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Maker Dai is nothing like GUSD. https://en.wikipedia.org/wiki/Dai_(cryptocurrency)

>Dai is a stablecoin cryptocurrency which aims to keep its value as close to one United States dollar (USD) as possible through an automated system of smart contracts on the Ethereum blockchain. [...] Dai is created from an overcollateralized loan[.]

Ampleforth is the most interesting 'stable coin' I've seen.

I agree on this, although ampleforth is not specifically a stablecoin, but nonetheless it's one of the most interesting economic experiments I've witnessed since bitcoin, a true Hayek money had never been possible before in humanity, thanks to chainlink a currency that even Satoshi Nakamoto dreamed of is now possible

Yeah you aren't understating it either. I get so excited by it that I have a hard time not sounding like a shill.

If you are referring to Gemini Earn, they take your GUSD (or other currency) and take a spread then lend it to Genesis, who takes a spread and then lends it to big institutions. None of this is insured.

https://support.gemini.com/hc/en-us/articles/360056367771-Ar...

It’s spelled Ethereum.

Thank you, it was driving me crazy.

Don't worry, that's just the way bridley spells it.

Some of it is likely them promoting the use of their stablecoin (paying out of pocket) while a lot of it probably comes from lending it out at higher rates. It is VERY easy to make more than 8-9% on stablecoins.

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