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The Race to Build a "Sticky" DeFi Debt Market
...uncollateralized or under-collateralized fashion, allowing companies and individuals access to efficient debt...The vast majority of these projects have been funded by tokens and/or equity and very little debt....This is a massive opportunity that Maple could tap into by providing a vibrant debt market that hundreds...
13 Min
Unsecured Lending
Apr 2022
Look Out for Prisma, Debt Cap to Increase Tomorrow
Prisma will be increasing its debt cap for all four of its liquid staking collateral on 15 Sep 2023 at...amassing an impressive ~$34M in TVL within hours, subsequently maxing out all four collateral vaults’ debt...With the impending debt cap increase, it’s anticipated that this limit will be promptly reached again...
2 Min
Stablecoins
Sep 2023
The Great Bond Migration
.” — Ray Dalio (03.15.21) I believe the reallocation away from sovereign debt, specifically U.S....Why in the World Would You Own Bonds When…”, as a reminder of many of the headwinds facing sovereign debt...valuation multiples for growth stocks, housing prices (which have been on a tear recently), government debt...
8 Min
Macro & Markets
Mar 2021
MicroStrategy’s Bitcoin Blueprint
MicroStrategy announced a $600 million convertible debt sale yesterday with the intent to “use the net...Similarly, MicroStrategy’s convertible debt offerings provide bond investors with a way to get exposure...First, let’s dig into the current debt offering: MicroStrategy’s latest 10-K filing indicates the firm...
5 Min
Macro & Markets
Feb 2021
MicroStrategy’s Bitcoin Blueprint
MicroStrategy announced a $600 million convertible debt sale yesterday with the intent to “use the net...Similarly, MicroStrategy’s convertible debt offerings provide bond investors with a way to get exposure...First, let’s dig into the current debt offering: MicroStrategy’s latest 10-K filing indicates the firm...
5 Min
Derivatives
Feb 2021
Empty Set Dollar: A Game Theoretical Approach to Elastic Stablecoins
...to coupons is not a direct effect of ESD’s spot price decreasing, but rather a byproduct of system debt...More debt makes coupon discounts deeper, offering participants a stronger incentive to burn their ESD...Once network debt has been wiped out, any new issuance is directed to bonders (token holders who bond...
9 Min
Stablecoins
Nov 2020
Pulse Check on Liquidity Trends
...lesser extent, the Fed” and that this trend “could continue through the better part of Q1 as the US debt...they’ve proven their willingness to coordinate efforts if that’s what it takes to ensure sovereign debt...The outlook for the US fiscal deficit is only getting worse, which means more Treasury debt issuance...
7 Min
Global Macro Themes
May 2023
Is RAI the Decentralized Stablecoin the Market Needs?
As RAI’s redemption price increases, it becomes more expensive for borrowers to pay back their debt....Naturally, this would cause borrowers to buy RAI on spot markets so that they can pay back their debt...As RAI’s redemption price decreases, it becomes cheaper for borrowers to pay back their debt.
11 Min
null
Aug 2022
Avoiding the Real Banking Iceberg
This is a story about the evolution of economies, our reliance on debt, and the corner we’ve gradually..., but that it creates larger risks for those who need to rollover existing debts....Over 40% of US federal debt held by the public has a maturity of less than 2 years....That means over $10T in US Treasury debt needs to be rolled over in the next 24 months.
38 Min
Global Macro Themes
Mar 2023
FEI Supply Drop, Vesta Finance Liquidity Mining, Gamer's Review of Pegaxy
Vesta’s V1 is based on Liquity, a collateralized debt platform....Stability Pool: Vesta primarily uses the VST tokens in its Stability Pool to absorb under-collateralized debt...When a liquidation occurs, the liquidated debt is cancelled with the same amount of VST in the Pool (...
7 Min
Stablecoins
Jul 2022
Monthly Chartbook - AI Narrative Takes the Wheel
@TheStalwart As part of the debt-ceiling agreement, student loan payments are set to resume on August...@DVandOne01 The second big aspect of the debt ceiling — perhaps it should be the first — relates to...The debt ceiling shenanigans prevented the Treasury from following its typical issuance schedule — it...
30 Min
Global Macro Themes
Jun 2023
Bitcoin for Advisors [Presentation]
Heading into 2020, advanced economies were already saddled with too much debt given their languishing...The problem is we live in a debt-based economy, and in order to stimulate a debt-based economy you either...have to reduce or restructure existing debts or pile on more....debt issuance.
7 Min
DeFi
Nov 2020
Exploring DYAD: A New Approach to Decentralized Stablecoins
Its debt would then be socialized across the remaining NFTs....Importantly, NFTs in debt no longer accrue XP and aren’t entitled to mints....More importantly, I think any possibility of a debt must be avoided at all cost....Many NFTs go into debt all at once. Insolvent NFT holders don’t inject new capital.
14 Min
Algorithmic Stablecoins
Nov 2022
Engineering Real Credit Onchain: The 3Jane Bet
In TradFi, this is where legal systems step in: asset seizure, debt collection, and bankruptcy courts...Some protocols must integrate off-chain enforcement (e.g., real-world debt collectors), others can build...At the same time, late penalties start accruing, further increasing their debt obligation. ...-based debt collection agencies.
18 Min
DeFi
Jul 2025
The End Game
Financially, they provided a check on money creation and debt issuance....Debt! More healthcare? Debt! More stimmies? Debt!...The problem, of course, becomes the debt itself. How do we pay for it?...purchases of government debt to finance government spending.
38 Min
Macro & Markets
May 2023
DAO Banking: Beyond Tokens
Very little has been done so far to incorporate debt or more exotic products like options to finance...Porter Finance: Adding Debt to the Capital Stack Porter Finance expands the capital stack by offering...The risk for lenders here is that if the value of RBN falls below the value of the debt, then Ribbon...So why is ZigZag tapping into debt markets?
24 Min
DAO
Jun 2022
The Dark Night Rises - Part 1
/GDP levels), and immense scale of debt monetization will continue to put pressure on the JPY if left...China is also the second largest foreign holder of US Treasury debt — which it’s been selling in part...Meanwhile, the amount of UST debt outstanding continues to rise relative to the size of the Fed’s UST...
23 Min
Macro & Markets
Jul 2024
Mirror takes on Synthetix, Funding Depressed, Aave Dominates Lending
...users stake SNX and mint sUSD against it, they have to constantly position themselves to mimic the debt...pool to avoid increasing their debt relative to their synths held.
3 Min
DeFi
Jun 2021
Through the Fire - Will the Rubber Meet the Road?
The record value destruction and increased volatility in sovereign debt markets are triggering alarm...Total US public debt outstanding continues to accelerate, pushing the US federal debt burden above $33.5...The world’s largest economy is now operating with debt-to-GDP ~120% – and it’s projected to continue...
19 Min
Macro & Markets
Oct 2023
Difficult Choices for Tribe DAO and USDD Tries for a Gauge
QiDAO repays bad debt from this mornings price action....However, there is some concern that this could constitute an unregistered debt securities offering....Debt securities is a topic that frequently arises in their forum.
8 Min
DAO
May 2022