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Because you can get interest on the fed paper from money that isn't yours? And if people redeem from you, just add a clause where if the liquidity pool is gone
by sudosysgen 4y ago
Because you can get interest on the fed paper from money that isn't yours?
And if people redeem from you, just add a clause where if the liquidity pool is gone you have to wait X days before getting it redeemed.
- jerf 4y agoIt is yours. Again, you can't back with "deposits". If you have deposits, the depositors have a claim that encumbers the assets; you can't then "back" something with encumbered assets. You can only back a currency with unencumbered assets. And if you have unencumbered assets, why would you use them to back a currency?
- sudosysgen 4y agoSure, I understand what you mean. It is still beneficial to the holder of deposits on which a small but nonzero yield is being received.