Incognito is a project that offers trading of a tokenized XMR for other tokens on a Uniswap-style DEX. To grow the liquidity pool, they are currently offering 13% APR on Monero deposits.
I'm not against all concepts of lending personally. Lending and borrowing is an important part of the economy. Thus, in my opinion, it's important to do what we can to grow the Monero lending and borrowing markets. We want to encourage everyone to list Monero so that there is strong competition and a healthy ecosystem.
However, Incognito holds XMR in a founder-controlled wallet. The security guarantees are very low then, since they can be stolen with little overall recourse. Further, the company is not a regulated institution. Users will be hurt if their funds are stolen.
So, is it a net positive or a net negative to recommend Incognito with certain caveats? What pressure can we put on Incognito to have better wallet security in the interim before they move to a more distributed custody solution? Luckily, they seem very interested in building a relationship with the Monero communities, so I expect them to make sensible changes if enough people ask.