![]() Their savings program is available to customers in the US. Gemini is offering rates up to 100 times the national US savings account average and these aren’t even their best ones. Information about minimum APY is not available. That means users are exposed to borrower credit risk. Comparison Table The following table lists savings account providers and the APY on GUSD deposits. Loans made through Gemini's Earn program, for instance, are unsecured. ![]() Our vetted institutional lending partners such as Genesis Global Capital find these borrowers and lend your funds in exchange for an interest payment."While crypto lending offers higher yields than bank deposits, it comes with a higher level of risk. "They are willing to pay competitive market rates to borrow GUSD. "There is high demand for GUSD among institutional borrowers who use it to fund their operations and investment strategies," Gemini COO Noah Perlman told The Block. ![]() Gemini is happy with them, because the loans are 'overcollateralized' but if Bitcoin falls too much they wont be overcollateralized any more, and you - the person who put your GUSD into Earn - is going to be the one who lost the money. 7.4% APY is enticing but it feels like we only have part of the story, going to test it out for a few months and see how it goes. Do you want to earn Gemini Dollar Staking Rewards by Staking GUSD Earning interest on your Gemini Dollar is easy and we will go over the steps for you to. GUSD Earn is run by Genesis, and theyre doing exactly what Celsius is doing here. "Institutional borrowers" could mean a bunch of things. Would love to better understand that population so I can understand the credit risk. Gemini dollars are created when you buy GUSD on the Gemini platform. Please note, if you are using ActiveTrader interface you must change your interface to the Gemini Basic in order to buy or sell GUSD. Genesis continues to have constructive conversations with creditors.According to Gemini, looks like most of the credit risk comes from the counterparty borrowers. You can buy or sell GUSD on the Gemini app, Gemini Basic interface, or Gemini ActiveTrader, the same way you buy or sell any other crypto. The Gemini USD is one of the few regulatory stablecoins in the market. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. It is also used to earn crypto yields and provide liquidity in DeFi pools. BIA launched in March 2019 and is currently paying interest on over 100M in BTC and ETH balances held at Gemini. can now earn up to 6.2 APY, earned monthly in GUSD. BlockFi Interest Account (BIA) clients based outside the U.S. Ī representative for the company told Decrypt at the time: "We have no plans to file bankruptcy imminently. Today we’re excited to announce the launch of Gemini Dollar (GUSD) stablecoin support throughout our platform. Yesterday, reports emerged that Genesis may be facing bankruptcy. I know Gemini is one of the best exchanges in regards to keeping up with regulations. Last week, Genesis unsuccessfully angled for a $1 billion bailout after the FTX crisis prompted a bank run on its lending arm.Ī Genesis document seen by the Wall Street Journal said: “There is an ongoing run on deposits driven mainly by retail programs and partners of Genesis (i.e., Gemini Earn) and institutional clients testing liquidity.” Gemini Earn I feel pretty comfortable holding stable coins and a bit too lazy to do the research right now, but GUSD is safe right. ![]() The company is still reeling from the implosion of Three Arrows Capital (3AC) earlier this year, saying the $2.3 billion owed by the ex-crypto hedge fund “ negatively impacted ” the liquidity of its lending business. The FTX disaster wasn’t the only hit Genesis took this crypto winter. Gemini’s announcement today was thin on details and thick with assurances, telling Earn customers that redemptions remain Gemini’s “ highest priority ,” that Genesis and DCG “remain committed to exploring every possible option,” and that all funds held on Gemini’s Exchange and Custody services are backed 1:1. Gemini’s Earn is tied to the fate of its lending partner, crypto prime broker Genesis, which, on the same day of Gemini’s announcement last week, said it was suspending all withdrawals due to the sudden, catastrophic collapse of the FTX exchange, which Genesis's derivatives business had $175 million exposure to. The motion is set for hearing on July 20th. (DCG) to find a solution for Earn users to redeem their funds. J(Friday) On June 29, 2023, Genesis filed a motion for approval of, among other things, the adequacy of information in its Disclosure Statement and the solicitation and the voting procedures with respect to Genesis’s Amended Plan. 1/5 Update for Earn customers: we continue to work with Genesis Global Capital, LLC (Genesis) - the lending partner of Earn - and its parent company Digital Currency Group, Inc.
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