Hex.com: The first high interest blockchain CD (hex.com)

This is too good to be true. How do they pay 40% anual interest to everyone without a +40% inflation?

Many people will assume a CD (Certificate of Deposit) is federally insured, which this is not. They should know better when a 40% yield is offered, but it is still better not to mislead people.

Are all these new defi products just eGold HYIP 2.0 with more steps? How does one not just jump straight to thinking ponzi as soon as they see the claimed rate of returns with no risk?