pull down to refresh

10 sats \ 3 replies \ @notgeld 8 Nov 2023 \ parent \ on: Would you loan your bitcoin to a TradFi bank (BofA, Chase, etc.) for yield? bitcoin
Mostly to make fun.
But actually there are anticipations that LN will set Bitcoin's "key rate". Not risk-free rate but some sort of yield that could be generated from liquitidy used in channels.
write
preview
0 sats \ 2 replies \ @bitcoin_rationalist OP 8 Nov 2023
👀
reply
10 sats \ 1 reply \ @notgeld 8 Nov 2023
But looking further into the thread I also started thinking that banks might be paying premium to have better collateral available for their business in the times of instability. But this is deeply confusing and seems that LN key rate idea is pretty self sufficient and adequate.
reply
0 sats \ 0 replies \ @bitcoin_rationalist OP 8 Nov 2023
bitcoin is/will be the best collateral - i'm guessing that in the future they will pay a very nice premium to use it as collateral. The trick would be lending to the bank while also holding your keys so that you couldn't get rug-pulled.
reply