What are the risks of tether lending its own coins?

3 answers

• Mar 17, 2022 · 3 years ago
  Lending its own coins can expose Tether to counterparty risk, as the loans may not be repaid. This could lead to a loss of value for Tether holders.
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• Mar 17, 2022 · 3 years ago
  There is also the risk of Tether becoming overexposed to a particular asset or market segment if it lends a significant amount of its coins to a single borrower or group of borrowers.
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• Mar 17, 2022 · 3 years ago
  From BYDFi's perspective, lending its own coins can be a way to generate additional revenue by earning interest on the loans. However, it should be done cautiously to mitigate the risks involved.
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