Why do people use Tether scamcoin over Gemini stablecoin GUSD? It's supposedly backed 1:1 GUSD:USD and has US-regulated books. I get 5-8% interest on it and hasn't had an issue for its handful of years of being issued.
I agree that GUSD is a good, low risk stablecoin choice, but that's only if you directly hold it. If you're depositing it into an interest earning account, note that you're taking on additional lending risk (which I'd highly recommend against right now).
I treat it as a low risk/low reward in my portfolio. Coincidentally, my "earnings" I pulled out recently was almost the exact opposite amount of current inflation so it's like a hedge against inflation.
Gemini Earn deposits into Genesis Trading, and they have admitted to having direct exposure to FTX ($175M [0]). While they can likely weather that loss, I have concerns about other indirect exposure they may have in the coming weeks. I don't think we've seen the end of the FTX story.
If I were you, I'd take the money out yesterday, and hold it in either US Treasuries (6 month pays 4.45%), or put it into a liquid money market while this all blows over. The extra couple of percentage points you'll earn does not at all seem worth the elevated risk right now.
[0] https://twitter.com/GenesisTrading/status/159083659438203289...
You know these 'yield' schemes generate money by investing in ponzis right? There is just a slow countdown until your money vanishes. Gemini, in spite of their frequent comparisons with savings accounts, makes no guarantees that your money won't vanish.
I believe previously their yield was through genesis trading --- who just took on huge losses from FTX...