Bitcoin and Crypto Thread

eradicator said:
The rewards for holding stable coins are quite good, I’ve seen 8%, and as high as 16% per year

I don’t think anyone holding stable. Coins is planning on holding them forever, though, probably a smart traitor, who is waiting for a good dip to buy.
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where does the yield come from??? Gemini Earn, for example - the risk is very high for such a low yield. STRC is the real "stablecoin" 8x overcollaterlized, non-rehypothecated and a 9% yield. Its more collateralized than a bank deposit - vs putting a stablecoin into a yield ponzi for a paltry 8% hoping to get out before the rugpull
 
chance vought said:
where does the yield come from??? Gemini Earn, for example - the risk is very high for such a low yield. STRC is the real "stablecoin" 8x overcollaterlized, non-rehypothecated and a 9% yield. Its more collateralized than a bank deposit - vs putting a stablecoin into a yield ponzi for a paltry 8% hoping to get out before the rugpull
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All of them are slightly different, which is why they give different rates

For example On Balanced DEX the savings rate (stable coin yield pool) is currently offering 16.5%. That yield comes from:

Interest charged on their stable coin loans,
DAO fee revenue,
On chain USA Treasury bills,
ICX inflation.

Here’s balanced dex http://balanced.network/

Coinbase is 4%
 
chance vought said:
where does the yield come from??? Gemini Earn, for example - the risk is very high for such a low yield. STRC is the real "stablecoin" 8x overcollaterlized, non-rehypothecated and a 9% yield. Its more collateralized than a bank deposit - vs putting a stablecoin into a yield ponzi for a paltry 8% hoping to get out before the rugpull
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The one glaring flaw with all the Microstrategy yield producing products is that Microstrategy does not produce any cash flow as a company so where does the yield come from?

The answer is the yield comes from issuing more securities to pay the interest on the existing securities.

This works fine under normal market conditions but if financial markets get dislocated (like 2008) they will not be able to issue securities because liquidity/demand will dry up. Then they will default on their interest payments or have to sell Bitcoin to pay the interest.
 
Australia Sucks said:
The one glaring flaw with all the Microstrategy yield producing products is that Microstrategy does not produce any cash flow as a company so where does the yield come from?

The answer is the yield comes from issuing more securities to pay the interest on the existing securities.

This works fine under normal market conditions but if financial markets get dislocated (like 2008) they will not be able to issue securities because liquidity/demand will dry up. Then they will default on their interest payments or have to sell Bitcoin to pay the interest.
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Liquidity won’t dry up, it can’t be allowed to or the entire fiat ponzi collapses.
A company worth $100 billion has no problem borrowing money, no matter what the market conditions. There is no reason to sell bitcoin, simply borrow more fiat - at an interest rate that is below the rate of monetary debasement. This is how every zombie company survives, borrow artificially low priced fiat money and buy assets. Strategy is just buying the apex asset.

I don’t recall the exact number, but I think it was one month of preferred stock issuance can pay for 80 years worth of the preferred stock dividends…as long as risk is mispriced (due to central bank manipulation), Strategy will continue to be profitable.
 
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