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32 sats \ 3 replies \ @justin_shocknet 30 Dec 2023 \ on: Loan shark: Super Testnet's non custodial, bitcoin only borrow and loan tool bitcoin
Whats the use-case where the collateral is the same as what's being lent?
Maybe could use this to provide liquidity for trusted (batched) swaps or channel factories?
Whats the use-case where the collateral is the same as what's being lent?
Tax arbitrage. More details here:
I also made a little comic book outlining how you can use loan shark for tax arbitrage, and I go over the comic book in the video at timestamp 10:07: http://tinyurl.com/ye2avw7j
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I'd think that very niche, but true... and that could also be used to add privacy between you and exchanges.
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I'd think that very niche, but true... and that could also be used to add privacy between you and exchanges.
You can also use it to get rid of Mt. Gox coins, toxic change, and other undesired sats
Take out a loan, put up some of your "ordinary" bitcoins as collateral, and pay off your loan using your "undesired" bitcoins
Now the lender is stuck with them instead of you, and you get back your "ordinary" bitcoins as a bonus
There's a cost (e.g. a 10% interest rate) but if you're stuck with coins you can't spend in any other way, it might be worth it
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