Oof. One does not offer 30% interest when one has access to capital any other way.

Methinks that Tether is not as healthy as they would have you believe.

For myself, I am not interested in any asset promising me 30% zero-risk returns. I know enough to know that is not a thing.

It's funny how badly people understand the mechanisms here.

Bitfinex is not offering that. It's peer to peer lending on crypto exchanges. Some random person is offering that.

I can go on there right now and create an offer of 150% APR for USDT, then screenshot it, go on twitter and claim the sky is falling. All for the cost of a few dollars.

But isn't it important that the person highlighting this APR rate is Paolo Ardoino, who is CTO of Tether and Bitfinex?

And Ardoino didn't even explain what he's trying to say. He's the CTO. What is his point here?

https://twitter.com/paoloardoino/status/1525412379269513218

This "Bitfinexed" Twitter persona has ten years of history of never ever saying anything positive about Tether, but Paolo Ardoino's tweet is not clear or particularly trustworthy either

> Paolo Ardoino's tweet is not clear or particularly trustworthy either

Given that it's been nearly 7 years of Tether and the relentless doom prophecies surrounding it, perhaps it's best left to the reader to make their own mind up what the CTO is saying here.

Probably the best advertisement they'll ever get for new finex signups if the rates hold steady for a few days.

Everyone says they are so untrustworthy yet you really think a CTO would be highlighting imminent doom like this?

It feels like some market participants are offering 30% interest rate to attract capital to Tether to prevent/compensate for mass selloff. I'm surprised it is only 30% and not more, once USDT starts losing value it will death spiral to nothing and tank the larger market as well, which would be a bigger loss for all players therein.

You could have made the same point without the first sentence. As per HN's guidelines:

> Be kind. Don't be snarky. Please don't sneer, including at the rest of the community.

I don't see any snark nor sneer in my comment. Sorry if it offended anyone.

Comments in this thread clearly seem to think that bitfinex is paying them those rates when that's not how it works at all. Bitfinex is the middleman.

You can offer any rate you want right now for any lending products on their website and that will appear. If anything I'd say this is an opportunistic marketing ploy by them.

Those rates won't hold. I've went through a big automated crypto lending phase and they never hold up for any significant period of time yet do spike like this regularly. It's either revert to mean or bust. You choose which one you think it is.

It will be interesting to see how many takers they get. A market-agreed-upon interest rate implies a default probability. 30% already implies a relatively high one, we'll see if the market supports it.

They are offering a higher rate on USD. Make of that what you will.

I used to lend 5 years ago on polo and these fluctuations happen. Best I got was 25%, it lasted a few days. Poloniex is now bigger than ever too.

Bitfinex is a money printing machine. They aren't going bankrupt anytime soon.

This is nuts. Is Tether failing too? This crap is way too complicated for a mere mortal.

It was depegged earlier this week. It will certainly fail eventually, but they may manage to keep the "party" going for awhile longer.

Tether's "peg" has long been more of a guideline than a fact.

For example, Tether traded as low as $0.95 and as high as $1.40 in 2021.

Can anyone independently verify this?

how can that not be ponzi scheme?

Since when was lending and borrowing a Ponzi?

The "Bernie defense"?

Risk and return are directly related. So, 30%, not looking good for Tether's ponzi either.