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A comment on Banks are slow to increase rates on savings accounts, but quick to reduce them.

Re:Banks are slow to increase rates on savings accounts, but... by ArtWomb on Saturday July 25, 2020 @08:31AM (#23948704)
Am curious how Compound, dX/dY, Nexo services are able to advertise such high interest rates on digital assets. Some as high as 10% APR accrued on a daily basis.
[ Parent | on HN ]
Re:Banks are slow to increase rates on savings accounts, but... by ac29 on Saturday July 25, 2020 @12:48PM (#23950584)
For one, because the underlying asset they are paying interest in can lose value, or even go to zero. Compound, for example, has lost 50% of its value in just a month.

The crypto space is also, to say the least, extremely risky, and full of every variety of untrustworthy, unscrupulous character.

[ Parent | on HN ]
Re:Banks are slow to increase rates on savings accounts, but... by akeck on Saturday July 25, 2020 @09:32AM (#23949040)
They're all backed by algorithmic crypto trading, and thus are operating outside the banking system discussed in the article.
[ Parent | on HN ]