Sometimes we also do things that progress humanity towards the better future and interest-bearing cash is one of those things.
1/ Welcome to #DeFi Wednesday.
Let's talk about how interest-bearing cash on a blockchain is going to revolutionise boring corporate treasury management that concerns every company is is a larger business than all crypto trading in the world.
Enter the thread
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Sometimes we also do things that progress humanity towards the better future and interest-bearing cash is one of those things.
My incomplete theory of interest-bearing cash is also available also as a blog post:
https://t.co/uiG0fZiVyu
It is 15 pages. Pick your slow poison or die fast by continue reading here.
Interest-bearing cash ticks up dollar (euro) balance real-time in your wallet.
Here is a demonstration using @aaveaave aDAI, based on @makerdao DAI, and @TrustWalletApp
Treasury managers no longer need to move money between the portfolio accounts and cash in hand.
More about asset and other inflations in this newsletter from @LynAldenContact "Defining inflation"
https://t.co/FaDhO9hTYZ
Why this innovation could not have happened before? How interest-bearing cash is related to cryptocurrencies, but not being a cryptocurrency itself? What is the history that brought us here.
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Money and securities (equities, bonds) and then non-liquid assets like real estate and your art collection.
Here is a full picture.
You cannot "send stocks and shares on PayPal"
Whereas stocks and bonds are "registered" held on a broker and you pay your broker (and 100s of other middlemen) for this fantastic service.
Most of money is on registered bank accounts. Bearer bonds are a thing, because registered bonds are too expensive and investors prefer the freedom they give.
https://t.co/wW6nqjTZN0
For both online bank accounts and online broker accounts computers the same thing: when you buy something in a transaction computer debits one account and credits another.
Computer does not care.
https://t.co/WSSLEV9o0Q
There are still ways to get profit margins out of them. You can e.g. trade the negative yield bond with "roll downs" for profit.
https://t.co/nJGVHG1rnc
- An account in a bank is not good store of value
- Having assets in a bank poses a counterparty risk
- Bonds are already used as MoE a SoV in large transactions
- Computers do not care what you use for a payment
Let's look at the example running on @aaveaave protocol
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Unfortunately, #Bitcoin and other cryptocurrencies proved too volatile to be used as a medium of exchange. The coffee shop small business owner is in troubles if his December revenue received -33% haircut.
Although Aave supports interest-bearing aTokens for every possible token, US dollar-based markets are the most popular ones.
Here is an example using tokenised GUSD dollar from @Gemini exchange, from @tyler and @cameron Winklewoss fame.
Here is @aaveaave aDAI balance ticking up real-time in @trustwallet
(Animation sped up for the effect)
https://t.co/SSPFd746Fy
"Ethereum of course!" would be a nice shilly answer, but there is more into it.
Here is a breakdown of the last 7 years of blockchain development.
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You need to have something pegged to USD or EUR to call it stable.
Smart contracts enable non-custodial, counterparty risk-free transactions, like ones with a lending pool.
No bank manager can mismanage your funds.
It is almost zero cost for third parties to integrate with.
Whereas Visa/Mastercard, etc. are behind proprietary protocols where you pay up just to read the documentation.
#DeFi protocols, in development since 2017, demand in stablecoin borrowing started 2020: reached a maturity level they really took off.
https://t.co/QJNzRKYzCN
5% - 15% interest is in a range of a Western credit card or developing nation business loan.
I am happy to see @NEARProtocol and @ElrondNetwork doing excellent work here.
Cryptocurrency, most prevalent collateral in lending pools, crashed down billions of dollars in value.
MakerDAO took $4M haircut, but it is peanuts compared to the total value of DeFi lending pools.
https://t.co/jHNUMhDt8f
- Positions are always collateralised
- Asset baskets are 100% transparent
- No insider fraud
- No credit card
What if smart contracts have bugs in them?
However this risk is a fixed cost and relative to the size of Assets Under Management (AUM)
Wall Street and London City traders complain they cannot do 100x kek kek.
CFOs to adjust the treasury risk/reward ratio based on their corporate needs. Underlying positions are automatically updated.
The whole banking machinery can be replaced by a smart contract having money inflows, outflows and risk parameters.
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The UN just voted to condemn Israel 9 times, and the rest of the world 0.
View the resolutions and voting results here:
The resolution titled "The occupied Syrian Golan," which condemns Israel for "repressive measures" against Syrian citizens in the Golan Heights, was adopted by a vote of 151 - 2 - 14.
Israel and the U.S. voted 'No' https://t.co/HoO7oz0dwr
The resolution titled "Israeli practices affecting the human rights of the Palestinian people..." was adopted by a vote of 153 - 6 - 9.
Australia, Canada, Israel, Marshall Islands, Micronesia, and the U.S. voted 'No' https://t.co/1Ntpi7Vqab
The resolution titled "Israeli settlements in the Occupied Palestinian Territory, including East Jerusalem, and the occupied Syrian Golan" was adopted by a vote of 153 โ 5 โ 10.
Canada, Israel, Marshall Islands, Micronesia, and the U.S. voted 'No'
https://t.co/REumYgyRuF
The resolution titled "Applicability of the Geneva Convention... to the
Occupied Palestinian Territory..." was adopted by a vote of 154 - 5 - 8.
Canada, Israel, Marshall Islands, Micronesia, and the U.S. voted 'No'
https://t.co/xDAeS9K1kW
View the resolutions and voting results here:
The resolution titled "The occupied Syrian Golan," which condemns Israel for "repressive measures" against Syrian citizens in the Golan Heights, was adopted by a vote of 151 - 2 - 14.
Israel and the U.S. voted 'No' https://t.co/HoO7oz0dwr
The resolution titled "Israeli practices affecting the human rights of the Palestinian people..." was adopted by a vote of 153 - 6 - 9.
Australia, Canada, Israel, Marshall Islands, Micronesia, and the U.S. voted 'No' https://t.co/1Ntpi7Vqab
The resolution titled "Israeli settlements in the Occupied Palestinian Territory, including East Jerusalem, and the occupied Syrian Golan" was adopted by a vote of 153 โ 5 โ 10.
Canada, Israel, Marshall Islands, Micronesia, and the U.S. voted 'No'
https://t.co/REumYgyRuF
The resolution titled "Applicability of the Geneva Convention... to the
Occupied Palestinian Territory..." was adopted by a vote of 154 - 5 - 8.
Canada, Israel, Marshall Islands, Micronesia, and the U.S. voted 'No'
https://t.co/xDAeS9K1kW
(1) Kushner is worth $324 million.
(2) Since 2016, Kushner has connived, with Saudi help, to force the Qataris (literally at a ship's gunpoint) to "loan" him $900 million.
(3) This is consistent with the Steele dossier.
(4) Kushner is unlikely to ever have to pay the "loan" back.
2/ So as you read about his tax practices, you should take from it that it's practices of this sort that ensure that he's able to extort money from foreign governments while Trump is POTUS without ever having to pay the money back. It also explains why he's in the Saudis' pocket.
3/ It's why the Saudis *say* he's in their pocket. It's why emoluments and federal bribery statutes matter. It's why Kushner was talking to the Saudi Crown Prince the day before the murdered Washington Post journalist was taken. It's why the Trump administration now does nothing.
(2) Since 2016, Kushner has connived, with Saudi help, to force the Qataris (literally at a ship's gunpoint) to "loan" him $900 million.
(3) This is consistent with the Steele dossier.
(4) Kushner is unlikely to ever have to pay the "loan" back.
Jared Kushner has a net worth of almost $324 million. But it appears that he paid little or no federal income taxes from 2009 to 2016, according to a review of confidential financial documents obtained by NYT. https://t.co/pMQDeCeDNq
— Kyle Griffin (@kylegriffin1) October 13, 2018
2/ So as you read about his tax practices, you should take from it that it's practices of this sort that ensure that he's able to extort money from foreign governments while Trump is POTUS without ever having to pay the money back. It also explains why he's in the Saudis' pocket.
3/ It's why the Saudis *say* he's in their pocket. It's why emoluments and federal bribery statutes matter. It's why Kushner was talking to the Saudi Crown Prince the day before the murdered Washington Post journalist was taken. It's why the Trump administration now does nothing.