alt Hacker NewsAs other users mentioned, that would probably raise concerns about risk. In terms of yields for startups I'm assuming we would be talking about zero risk assets, that is US treasury. But I'd be interested in learning about these alternative assets.
As other users mentioned, that would probably raise concerns about risk. In terms of yields for startups I'm assuming we would be talking about zero risk assets, that is US treasury. But I'd be interested in learning about these alternative assets.
That's totally fair. Risk is 100% the right concern to have when you hear about higher yields
We have a pretty comprehensive blog post about these assets (floating-rate agency MBS) and why we think they are a much better fit for startup treasuries. I encourage you (and anyone else reading this) to give it a read so that you understand exactly how they work and what the tradeoffs are: https://www.palus.finance/info/safety
That said, we understand not everyone wants to spend their day reading our blog posts. So the best tl;dr we can give is that the higher yields do not come with a credit risk, but instead with 1-2 days of liquidity cost versus same-day for MMFs. Which is much more ideal for a startup's idle cash