Crypto gold promoters claim 80% APR amid speculative mania
If anyone thought speculation in precious metals markets was getting out of control, crypto traders have taken that frenzy to new levels.
In DeFi, yield farmers are claiming annualized yields of up to 80% APR on tokenized gold.
If that trade sounds reckless and unadvisable, it is. Constructing a trade to achieve yields 22 times higher than a US Treasury obviously stacks up wobbly risks to toppling heights.
Spot gold and silver are volatile enough in their own right, even before adding tokenization, protocol risks, and a daisy chain of trust in offshore third parties.
Gold volatility implied from options contracts is above 24 and silver tops a staggering 65.
And while that volatility has recently rewarded recent…
