Smart or stupid? My friend is putting his future down payment into USDC and lending on crypto.com for 10% APY for 1 year

My friend who introduced me to crypto just told me about this.

His plan is to turn his (sizeable) down payment into UDSC and tuck it away on crypto.com in 3-month lending periods that are 10% APY each, until he needs to withdraw it when he finds a home sometime late next year.

He says UDSC is the only trustworthy stablecoin for him and that crypto.com is the safest and simplest place to lend stablecoin so it will take virtually no effort and be better than earning a pathetic .06% interest through a bank or elsewhere.

...but there must be some greater inherent risk with doing this right? Even on a big platform like crypto.com? Could it be stolen, etc.? If not, why isn't everyone doing this?