(Repost to clarify due to some comment idiocy) This is not correct on multiple levels: - BFX does not own Tether - BFX peer-to-peer lending books has run out of USD (not USDt) due to big users re-balancing their longs against USD, causing around 700M in lending to be refreshed.https://twitter.com/DoveyWan/status/1346818690289868803 …
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(Today my english is worse than usual) Notes: - P2P lending books are run by users as normal trading books, based on demand and offer - P2P lending books are not a representation of BFX own USD balance sheet, but BFX users lending the USD they have in their accounts
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Replying to @paoloardoino
thanks for the reponse Paolo! Yes understand it's P2P, and that's always the primary source of
$USDT lending given Tether have its own outlets and PB with a direct relationship with Tether may priorize lending on BFX1 reply 0 retweets 3 likes
No problem! I think the issue was just timing. When users reduce their positions it takes a bit of time to process closed loans and return funds to lenders to be lent out again. The massive size + this accounting delay caused lending books to be temporarily wiped out.
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