alt Hacker NewsLucky for both of us, the value prop isn't just "we are offering better interest rates on the same instruments because we gave up our cut"
It's actually "we found a way better set of instruments for long-term cash that allow us to offer better interest rates without giving up the cut altogether"
That being said, we do think the current treasury products can be a little predatory with their rates. For example, Rho charges a variable rate that peaks at 0.6% for any deposit of $2M or less. We think that's crazy so our margin is a flat 0.25%, no asterisks or fine print.
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.