Saylor's sermons
It might surprise to some of you but I don't actually listen to Michael Saylor's various podcasts. I found him too detached (or I didn't wish to be lectured). Yet yesterday I sat through Peter McCormack's What Bitcoin Did podcast with Saylor.
Its very lengthy - 2 hours 32 minutes. Biggest take away is back to my thoughts about yield sweep (or as crypto folks call it yield farming) in the DeFi world from earlier in the year. He alludes to it via many metaphors but herein is my example of how I had been going about it.
Crypto platforms (e.g. FTX) show you the current & future funding rates. Have liquidity ready in X different assets that you feel you are comfortable holding over long period of time (e.g. BC/ETH/USD gets split into 30/10/60 in USD terms).
Keep an eye on future funding rates and leverage the various rails (like Tether or Circle) to transfer between platforms to lend to whomever is giving the highest yield.
Majority of time I have stayed on FTX itself (largely due to being busy during working hours + family duties over weekends). Nevertheless, on average the USD was yielding > 8% / year for about 60% of the time; 100% / year for 2 to 5% of time; remaining ranged between 2 and 10% (currently its 3% on FTX).
Moreover, if I was willing to move into other crypto assets (such as 1inch) - there were days when its funding was 300%+ / year. I believe I saw it at 1000% also - however - I haven't re-confirmed.
Lastly, I could easily move into far fringes of DeFi platforms where the yield is even higher; of course counterparty risk is higher also.
Extrapolating further...and taking a page from El Salvador's bitcoin bond thoughts. Wondering, what if the above is packaged up into an instrument as a form of collection of liquidity from willing participants; chop it up into X assets (aka digital properties) and then electronically transmitted geographically to platforms as a yield sweep optimisation effort.
Of course, this would need a major Tradfi player in order for the product to be taken seriously + trust worthy Defi participant with efficient rails.
Added twist: could turn this into multiple versions of a bond where issuer keeps the spread (between bond coupon and yield) or shares it with participants.
Interesting Reads / Listens:
