What is the catch of getting 9.3% APY for USDC stacking?

Question

I’m sure there is a catch . How is it possible that one can earn over 9% APY on USDC? There are many platforms offering this. Just on example https://blockfi.com/rates/
This looks too good to be true. With this in mind why doesn’t’ everyone just put their money into USDC and earn a 9%??? I was trying to learn how this works but still dont’ understand. No one on YouTube or google really knows how this works. I deposit $1000 and get $90 as an APY. Where do they get the money from? Also, what is their interest??? Blows my mind

Euler's Disgraced Stepchild · Accepted Answer

They earn money the same way banks do, that is to say by taking cash deposits (or crypto) and lending to others at higher interest rates. Things to consider are that the rates are adjustable, and that there is significant counterparty risk (which kind of goes against the philosophy of defi in my opinion).
The below is an article I found fairly informative, maybe it will be helpful to you as well.
https://cryptobuffett.medium.com/pros-and-cons-my-experience-earning-interest-with-blockfi-c27c133fa6fb

What is the catch of getting 9.3% APY for USDC stacking?

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