A look at price risk-free yield strategies

Bitcoin’s price has continuously risen for the past six months. On October 1st, BTC was at ~$10,600 to over $51,000 today — a 380% increase. As a product of this run, the demand for stablecoin-denominated debt for leverage has increased appreciably. For stablecoins (or constructions of synthetic USD positions), the yields are extraordinarily high compared to rates in traditional markets. 

There are a few different reasons for this. The first and obvious reason for higher interest rates is that they are rewards for increased risks. Despite companies like BlockFi and Genesis growing, with BlockFi reportedly raising a Series D at a $2.85 billion pre-money valuation, users of these services are uninsured lenders to young financial services companies.