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I've thought about how 0,<0 rates impact the business model, three things : - charge interest on holdings (may make it a security) - charge modest TX fee (easy on eth, not on omni) - second order benefits for partner exchanges (finex, binance, itbit, etc)

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SBF

@SBF_FTX

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@zhusu

Agreed, though there's always the "look we have $1b under management, buy our equity" model

9:42 AM · Mar 20, 2020Twitter Web App

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and

that would be a hail mary approach and a product like TUSD would probably have to do that since no partner exchange. a final strategy would be to go full shadow bank mode and take more risk on asset side of balance sheet to grab yield...with obvious downsides

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and

Investment losses are scary, but such drops have happened before. The real danger lies with managers who try to "make up" losses. This can only be done by adding risk on top of an already depleted capital during a period of great instability. Bankruptcy is the usual outcome.