7.65 APY. Is this too good to be true?

[special]

So I am browsing Reddit and I come across this add.

https://nookapp.xyz

There is no mention of any kind of deposit insurance (FDIC) and it really doesn't inspire any confidence. Am I missing something?

[halbert]

step one:

"Convert your cash
Nook partners with Coinbase—our trusted payment provider—to convert your funds into USDC, a stablecoin pegged 1:1 to the U.S. dollar."

It may be good, it may be true, but fuck that!

[Gareth]

Convert your cash
Nook partners with Coinbase—our trusted payment provider—to convert your funds into USDC, a stablecoin pegged 1:1 to the U.S. dollar.

Deposit your funds
Nook sends funds from your wallet directly to the earning protocol with the highest rate — all of which are hand selected with $1.5b on platform

Move funds anytime
At any point, you can withdraw your funds directly back to your Bank or Coinbase account. There are no lockups, delays or wait times.

What is defi lending?
Decentralized Finance (DeFi) lending lets you earn interest on your money by lending it through blockchain-based protocols. Borrowers use these protocols to access funds without selling their crypto, paying an interest rate in return. Currently, over $8 billion in active loans is locked in these protocols.

Ah, sounds like you're essentially lending cash to crypto investors and they are using their crypto as collateral.  As long as the crypto market stays afloat, it should be good, but if the crypto market crashes, you should assume your investment will disappear as well...

---

If you want something that's simple, close (7%) and maybe a little more secure, check out https://worthy.capital/welcome-guide/

They put the money into company bonds, which, at least are pretty high up the food chain when a company goes bankrupt (my dad has pretty much invested 100% of his savings in corporate bonds - it's not fancy, but it works).

I don't have a lot invested at Worthy, but I have a little with them.

[special]

Ah, sounds like you're essentially lending cash to crypto investors and they are using their crypto as collateral.  As long as the crypto market stays afloat, it should be good, but if the crypto market crashes, you should assume your investment will disappear as well...

yeah I read all that and it didn't make a lot of sense. It seems that this could work for small fluctuations, but like you said, a crash would wipe out your money.

I won't touch this with a 10 foot pole, no thanks.

[atilla]

If it is looks too good to be true, it usually is.
I would not even look at it.

[Don]

I've been considering moving some funds into a High Yield Savings Account. Worthy looks interesting at first, but their "welcome guide" doesn't tell me a whole lot and if I click to learn more, I just go back to the welcome guide.

[special]

I've been considering moving some funds into a High Yield Savings Account. Worthy looks interesting at first, but their "welcome guide" doesn't tell me a whole lot and if I click to learn more, I just go back to the welcome guide.

360 Performance Savings: 3.50% APY

or choose one of these: https://www.bankrate.com/banking/money-market/rates/

[Don]

Thanks. Yes, all of those are decent options. And there are a few showing 4.00%+. Always nice to have personal recommendations, though.

[special]

personal recommendation is 360 Performance Savings. I never had a problem with them, they were ING DIRECT when I started