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Ethereum founder Vitalik Buterin said there is no genuine investment that can get anywhere close to 20% returns per year while analyzing the implosion of the Terra blockchain which sent the crypto market into freefall earlier this month.
One of the stablecoin’s main attractions for investors had been its promised interest rate, set as high as 20% for UST deposits in the Terra blockchain-based lending project Anchor. “The greater level of scrutiny on defi financial mechanisms, especially those that try very hard to optimize for ‘capital efficiency’, is highly welcome,” Buterin said in a statement Thursday. “The greater acknowledgment that present performance is no guarantee of future returns (or even future lack-of-total-collapse) is even more welcome.”
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