The FTX collapse has brought on a new level of uncertainty and impacted many investors. It has also reaffirmed the foundational security, regulation, and transparency requirements in a still-developing industry.
First and foremost, Stablehouse has not been impacted by recent events. We have had ZERO exposure to FTX, FTT token, Alameda, Genesis, Gemini, or BlockFi.
Your assets have been and continue to be safe. And you can withdraw them at any time, according to our Terms and Conditions.
'Attractive crypto yields' were obtained from an ecosystem not ready to be self-sustaining. We have been observing this over the last few months, and it became particularly clear over the previous few weeks:
- It started with LUNA's collapse and, with it, its 20% UST yield.
- Then Celsius, 3AC, BlockFi, and FTX/Alameda.
- And now, the largest lender in the market, Genesis, also halted withdrawals and is seeking $1bn in funding.
How we've responded
From the onset of the crisis in Q2, we reduced our exposure to effectively zero, and since then, we have taken the conservative stance of sitting on cash.
What we're doing next
The risk-reward profile of 'crypto yield' is not attractive anymore. When US Treasuries yield north of 3% and regulated public market corporate bonds trade close to 5%, the risk-reward profile of the 'crypto yield' offering is no longer a value-add to our investors.
With this trend likely to continue, we have decided to phase out our 'yield' product in favor of alternative investment opportunities that deliver enhanced risk-adjusted returns.
Until we bring these to market, we will continue to pay a reduced yield of 3% on stables and 2% on BTC/ETH.
- The reduced yield will go into effect at 23:59 UTC on 21 December.
- Yield is only for existing clients.
- We will not accept new yield-earning customers after midnight on Wednesday, 21 December.