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Would you like to discuss what makes a syncthetic good or bad?
by doublesCs 6y ago
Would you like to discuss what makes a syncthetic good or bad?
- csomar 6y ago1. Order book, aka enough liquidity, aka moving positions doesn't incur a haircut on your capital. 2. Funding rate stability. aka it doesn't cost much (or actually make you money) to hold the position. 3. Claw-backs, aka you don't wake up one day and find that half your collateral is gone because the market made a big move. This is a big problem especially for Okex. Basically, a synthetic USD is good if it behaves and yield like a real USD.
- arcticbull 6y agoHave you considered USD? That behaves and yields like a real USD.
- CPLX 6y agoRight but it doesn’t have blockchain.
- csomar 6y agoIs it really hard to figure out that someone going through the hassle of managing a synthetic USD has a very good reason to do?
- arcticbull 6y agoUsually crime, yeah. BitMEX isn't going through all this trouble and criminal indictment avoiding KYC because people using it are super on the up-and-up and have no problem with validating their identities.
- hnracer 6y agoThe large majority of synthetic USD trading is speculation and hedging. It's significantly cheaper to trade synthetic USD than actual BTCUSD, so 100% of traders will prefer that.
- arcticbull 6y agoI'm curious how true that is, 30% of Tether's backing currency was seized for being associated with money laundering.