Robinhood Earn is offering around 7% yield on USDG, and on the surface it looks pretty attractive right now.


But I think the risks are more complicated than most people realize, even with Lloyd’s insurance.
Here’s how the money actually flows:
You buy USDG → deposit into Robinhood Earn → it gets lent through a Morpho vault → then allocated across multiple lending pools (like Ethena, Maple, etc.).
Your capital is going through several layers of protocols and counterparties.
Each layer introduces its own set of risks: smart contract risk, counterparty risk, liquidity risk, USDG depeg,..
Even though there’s insurance coverage for certain exploits, it doesn’t cover everything. So 7% yield is not sexy as it sounds, imo.
Personally, I still believe that in most cases, simple is better, especially when it comes to yield.
HOOD-0.19%
USDG0.02%
MORPHO0.57%
ENA7.65%
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