Great article. Couple of questions 1) are you planning to detail the purchase, borrow and re-lend process for luna 2) I don’t understand the economics here, you are borrowing UST (what is cost) and lending at 19% (how is sitting on the other side of that trade and paying that much?!?) . Thx
I am trying to film a podcast tomorrow to go over details which will be pubished in an upcoming report. How much did I pay to Borrow UST? I was paid 58bps. No joke. However, this is the lever. If too much demand comes in, they will charge. I can see this going to be a charge of hundreds of basis points. The other side has big gains and wants to borrow tax free against it without paying cap gains and feels the value is going up. I will hopefully address this in my 1st podcast. thanks for reading. Remember, I am a crypto idiot. I am learning.
Great article. Couple of questions 1) are you planning to detail the purchase, borrow and re-lend process for luna 2) I don’t understand the economics here, you are borrowing UST (what is cost) and lending at 19% (how is sitting on the other side of that trade and paying that much?!?) . Thx
I am trying to film a podcast tomorrow to go over details which will be pubished in an upcoming report. How much did I pay to Borrow UST? I was paid 58bps. No joke. However, this is the lever. If too much demand comes in, they will charge. I can see this going to be a charge of hundreds of basis points. The other side has big gains and wants to borrow tax free against it without paying cap gains and feels the value is going up. I will hopefully address this in my 1st podcast. thanks for reading. Remember, I am a crypto idiot. I am learning.