How does Binance pay 8% APY on BUSD?
Easy. They loan BUSD to people who borrow money to trade shitcoins, eventually shitcoin traders lose their money in liquidations when the shitcoins crash in value, and when the market crashes too much...
Binance then needs to bail it out.
Easy. They loan BUSD to people who borrow money to trade shitcoins, eventually shitcoin traders lose their money in liquidations when the shitcoins crash in value, and when the market crashes too much...
Binance then needs to bail it out.
Are you noticing a pattern here? Crypto lenders keep making loans to trade shitcoins, shitcoins crash, and then the crypto lenders need cash injections.
BlockFi boosted rates when they got bailed out, look how it worked out for them.
BlockFi boosted rates when they got bailed out, look how it worked out for them.
The only thing someone can borrow BUSD for on Binance, is to margin trade shitcoins.
It's essentially like making loans to gamblers at a casino. Sooner or later, every single one of them is going to lose their money, and how do they pay it back?
They don't.
It's essentially like making loans to gamblers at a casino. Sooner or later, every single one of them is going to lose their money, and how do they pay it back?
They don't.
I'm sure everything is fine though, Binance is audited by Armanino LLP. I'm sure this wouldn't pass the smell test.
I'm sure Binance isn't going to run into any problems at all. reuters.com
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