We simply couldn't hold our mouths shut on this.

1. We offer over 6% APY for #bitcoin and $ETH deposits. We do not blink an eye.
2. We will demonstrate with a thread how these economic principles are simply wrong. Worse, they are misleading the general public (thread). https://twitter.com/BlockFi/status/1386797049014849537

First we will go over the "market rate" which apparently proves their hypothesis. There are many creative ways to find the best rate to lend BTC (or WBTC). We will go over only one (we will not give away all our sauce, nor the most scalable solution either). Contd

On getting BTC (WBTC) we can first go to @MakerDAO Oasis and make 50% of the $BTC notional in $DAI. We pay 4.5% to borrow the $DAI. We can also borrow currently $USDC (thus through conversion $BUSD or $TUSD) at 4.6% on Compound. So we can end up with BUSD/DAI (contd)

With 50% of BTC now borrowed at 4.5% to 4.6% in DAI/BUSD - we can then farm this in @PancakeSwap at rates of at least 16.5%. Thus, netting 16.5% - 4.6%, gets us to about 12.0%. This is on 50% of the BTC we started, so the rate is halved. This is at 6% APY at least!!! (contd)

There are innovative ways (well, its not rocket science) to achieve similar APY. As a user you can lend in @FTX_Official, you can lend in @bitfinex as well that outside the lending/borrowing platform ecosystem. So, @blockfi's reference rate of 0.34% is a skewed wrongly (contd)

Either by uninspired thinking or to rationalize their rates.

Now we look at the this theory that deflationary assets do not carry or have negative "interest or yield." This is absurd. Your home is a deflationary asset - do you rent this out for free? (contd)

Or satisfied to rent below cost because of its price appreciation gains? Absolutely not.

We have not even broached the topic of credit spreads - and loss risks that would also need to be considered. But we will end this here. Any comments, etc always appreciated!