Search results

for sure tether is the outer limit of what's permitted. but the basic model, creating liquidity backed with crypto assets, is not going away. its essential if crypto is going to survive as a functional marketplace

other stable coins will do the same thing eventually, or else leave free money on the table.

it is interesting tho that they are considered dubious by he crypto community given that they are also seemingly the most important systemically

it's a difference of degrees, at base they're all doing the same thing

dont know much about paxos but I'd be surprised if they were doing something different

USDC are similar imo

yes, its heavily predicated on the success of crypto as a whole. assuming that bet pays off, they can simply suck up profits for little effort

exactly it's simple really, borrow at 5% lend at 10% and profit from the spread. why wouldnt you do this?

in the tether papers article (did you post that, btw? it's really good), they seem to think theres some ambiguity about whether usdt is fully backed, which seems crazy to me. what tether are doing could not be more obvious.

i dont think so. if they want to make loans in USDT then they should borrow at favourable rates from tether and lend at higher ones, that's a model which scales

especially if they're lending usdt or even dollara

if nexo are making loans then they're definitely borrowing to support them, nothing else makes sense from a bottom line business pov

everyone is

nexo is 100% using leverage

doesnt really matter what format the liabilities take, tether issue their liabilities and acquire as an asset nexos liabilities

I see. well, some amount of that is obvs loans. but nexo will need to get that at a rate which is lower that that which its offering to its borrowers in order to make a profit

2.6 billion last year, according to that protos article

tether are already lending to nexo tho

seems like a lot of effort, but maybe, yeah. assuming nexo are happy with that.

nothing is preventing that, although it's probably not very profitable, since they have zero yield. better to issue in exchange for a promise to pay back more