Thank you! Should have thought to check the archive myself. The link I'd found before also had a referrer on it from the X account which also made me suspicious.
For what it's worth the claim is "2x the national average in interest", the national average in interest is incredibly low as many people have their money in checking/savings accounts at large banks with near 0% interest rates. It's very possible to give people twice the national average and still make money on the spread between that and the ~5.5% short term treasury yield.
Marcus by Goldman Sachs claims their rate is "8x the national average" at 4.40% and I'm sure they're making money just fine too.
YOUR AVAILABLE DIGITAL ASSETS WILL LEAVE GEMINI'S CUSTODY, AND YOU ACCEPT THE RISK OF LOSS ASSOCIATED WITH LOAN TRANSACTIONS, UP TO AND INCLUDING TOTAL LOSS OF YOUR AVAILABLE DIGITAL ASSETS.
Gemini is not a depository institution, and the Program does not offer a depository account.
Participating in the Program may put your Digital Assets at risk.
Loans made through the Program are unsecured.
You have exposure to Borrower credit risk, and Borrowers are not required to post collateral to you or to Gemini.
Transactions in Digital Assets may carry added risk compared to lending of other types of assets because transactions in cryptocurrency are in many cases irreversible.
Funds may not be recoverable in the event of errors or fraudulent activity.
For anyone using similar programs for years, they are the exact same
Nexo
Blockfi
Crypto.com
And Celsius
All have the same inherent limitations for insurance coverage and clauses
At least the autonomous onchain services let you purchase smart contract insurance to reimburse community accepted unexpected behaviors like overflows.
There's no disagreement here. FDIC/SIPC protect against insolvency. The context of this discussion is borrower credit risk, i.e., the risk that the borrower becomes insolvent.
Bank accounts are FDIC insured up to $250,000 each.
If your broker lends out your stock to short sellers, it will always return your shares, even if the short seller gets margin called and doesn’t have the money to pay back their broker.
I’m not sure what you mean by “index fund”, but securities/stocks are protected by SIPC insurance, up to $500,000 per account. You will get your stocks back if a brokerage fails.
Looks like Polymarket took the profile down but it’s still available on the Internet Archive