GUSD loan interest rates rise through short hysteria

GUSD loan interest rates rise through short hysteria

The rental interest of Geminis Stablecoin Gusd climbed the Gemini Earn program on the decentralized Aave on Wednesday morning.

Gemini is one of the many large crypto companies affected by the suspension of customer returns in the digital currency broker Genesis, one of the youngest crypto giants affected by SBF.

Speculators assumed that many rely on the asset-selling and the collapse of Gemini and a GUSD departure.

increased interest rates reflect a sudden increase in demand for stablecoin as use Available GUSD delivered to the protocol 100%. In contrast to other assets such as USDC, DAI and ETH, GUSD cannot be used as security, so that the GUSD can only provide the GUSD for the purpose of achieving the prevailing interest rate.

At the beginning of this year Gemini co-founder Tyler Winklevoss Rev A LED that the company would work with Makerdao to offer 1.25 % staking rewards for every GUSD that is available in the Maker’s PEG Stability Module-a mechanism that Make sure that Dai retains its bond with the dollar.

In the event that Gusd Depegging, the collateral base of DAI would deteriorate.

But according to Coingecko data, Gusd saw no unusual volatility today, and it would not be expected that the problems of Genesis, the opponent of Gemini Earn, would be at risk, such as Marshall Beard, Chief Strategy Officer at Gemini. wrote in a Makerdao-Forum .

"Gemini user money outside of Gemini Earn are not affected."

Beard noted: "Gemini keeps the fiat currency of the customers on accounts that are separated by our business, operating and reserve bank accounts that have been specially set up for the benefit of Gemini customers. We do nothing with customer money, unless we have been expressly authorized and dependent."

In addition, Gusd is a strongly regulated asset - Gemini Trust Company, LLC is regulated by the New York Department of Financial Services (NYDFS) - and Gemini’s