eli5

ELI5: How are 15-30% APYs on Base USDC possible right now?

Aave

@atlas what are the risks of supplying usdc to borrowers on aave for 20.45% apy?

i talked to @atlas about this yesterday 

short answer is low lender supply i think, not fully sure about the risks

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i talked to @atlas about this yesterday 

short answer is low lender supply i think, not fully sure about the risks 

https://warpcast.com/jrf/0xba38dc2a

Sheeesh
I entered the space literally the day the 2021 run ended so I missed all that 😅

Good to know. It’s yet another sign 🐂

people were borrowing usdc at ~10% apy in 2021 on ethereum when trading volumes were super high

it makes sense that it'd be higher on base where there is less stablecoin volume

So it’s just classic supply < demand eh

But hot damn those APYs seem so extreme. It makes me wonder what is happening in the broader ecosystem to create those conditions.