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That only helps if the treasuries get redeemed by then (and it also isn't quite what people would expect in terms of liquidity, I suppose. Kind of similar to ot
by RandomLensman 3y ago
That only helps if the treasuries get redeemed by then (and it also isn't quite what people would expect in terms of liquidity, I suppose. Kind of similar to other options then, e.g., looking at some recent situations, FDIC stepping in also doesn't seem to take forever for retail).
- koolba 3y agoThat’s exactly the point. If you have up to X days, you hold US treasuries with maturities of up to X days. You can also add clauses to the contract that allow earlier redemption into the underlying securities with redemption less than X days. There’s a lot of ways to skin this cat and still pocket the spread in the general case.
- RandomLensman 3y agoSure, but doesn't that business model kind of exist then in the form of money market funds (and somewhat related in bank deposits) anyway? What's the new thing from a customer and business perspective?
- koolba 3y agoBeing able to take part in the defi ecosystem. Being able to have all your money stolen with no recourse when you misplace your crypto pass phrase is new.