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Bloomberg explains why 12% APY on stablecoins is possible with crypto "shadow banks"

Interesting article from Bloomberg: [https://www.bloomberg.com/news/articles/2021-03-27/crypto-shadow-banking-explained-and-why-12-yields-are-common](https://www.bloomberg.com/news/articles/2021-03-27/crypto-shadow-banking-explained-and-why-12-yields-are-common) It offers an explanation why crypto lending platforms can pay up to 12% APY on stablecoins: there's a lack of cash in the market, and the borrower can apparently make more than the paid interest. It gives an example of hedge funds borrowing stablecoins (say, 12% APY), buys Bitcoin at spot price ($56,000), sells future contact on CME ($60,000 for July); that is equivalent of 21% annual return (9% profit), and almost "risk free". >The spread between spot and futures has been even higher in recent months. Not sure if this could also explain why interest rate on Bitcoin has dropped recently, as more and more people are longing Bitcoin? It's also ironical that with all the money printing in the US, it appears that not enough of it has entered the crypto world.
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