Skeptical take: Is a 7% Bitcoin yield realistic?
Okay. A 9% return over 200 days annualizes to about 16% yield. If I take 16% minus 7% = 9% and then apply a 0.8 factor to account for collateralization, I get 9 * 0.8 = 7.2% annual on the Bitcoin I put in. That seems like an unusually high Bitcoin yield — don’t you think?
If one could reliably earn ~7% per year on their bitcoins, why wouldn’t major exchanges do the same? They could, for example, offer me 3% on my BTC while capturing the remaining spread to net 7% themselves.
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