because i borrowed money from someone else to lend you the fiat.
i don’t want to own billions of dollars of fiat and lend it out to make petty yields of 6%-12%. i want to own bitcoin.
so if i borr...
Thanks Jack, makes sense. You have a fiat liability, and you want to offset it with a Bitcoin asset (collateral) so there is no risk of you being unable to pay back your original lenders.
What about a time duration mismatch type of system? Borrow longer term and lend shorter terms to allow for more default tolerance. Spitballing, I’m sure your team has thought about a lot of different ideas already.
Another honest question, is there a point where the juice isn’t worth the squeeze? If you’re able to borrow at relatively low rates and Saylor wants to give you 11% with STRC, or you want to simply buy Bitcoin with borrowed money yourself, at what point does that make sense versus running the Bitcoin-collateralized loans?
What about a time duration mismatch type of system? Borrow longer term and lend shorter terms to allow for more default tolerance. Spitballing, I’m sure your team has thought about a lot of different ideas already.
Another honest question, is there a point where the juice isn’t worth the squeeze? If you’re able to borrow at relatively low rates and Saylor wants to give you 11% with STRC, or you want to simply buy Bitcoin with borrowed money yourself, at what point does that make sense versus running the Bitcoin-collateralized loans?