Ziglu Account 5% apy

So I have an account with them for about a year and a few months ago they introduced an account that changes what you give them into TGBP (they also do a Bitcoin one. I don’t use it tho), they lend it out and you get 5% apy paid weekly. They do this on up to £10k. I’ve had money in this for the last few months and been happy so far. It’s not secured, so no FSCS but 5% is 5%.
What are people’s thoughts on this?

I have taken money out and it was no slower than doing a transfer from one bank to another.

It’s risky. I wouldn’t use it for any of my low-risk or emergency savings.

But for a bit of diversification I have put some some money in stablecoin lending that I would have otherwise used for stocks.

It’s also not covered by their crypto insurance, I believe.

It’s a common kind of product in the crypto world (look at crypto.com). The question is, how are they getting you that 5%?

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Celsius give 8.8% so my guess is they go somewhere similar and pocket the difference.

Celsius makes direct (overcollaterialised) loans and is working on an insurance product though…

They essentially provide overly-secured lending

I think they use Celsius.