This is just crypto p2p lending, which is hardly new. Fraud is rampant in this space.
it's not, this is either overcollateralized lending like compound finance or dharma, or it's flash lending. You don't have to worry about fraud. edit: this line sheds some light: "Gemini is partnering with vetted and accredited third party institutional-grade borrowers including Genesis Capital". So they are lending your money to accredited parties, not random people on the internet.
I guess they're just collecting a spread on the yield offered by Genesis then. Why not just go with Genesis directly?