Updated: Sep 9
Invictus Capital is going to start Alpha Fund
One of the biggest problems in the #DeFi market are the products making no sense.
Lending crypto doesn't make sense for any holder of #
BTC. The losses in a dump market to high to be fetched by interest fee than rather selling BTC. In a bull run, Bitcoin outperforms any asset in seconds but the interest fee stays and the lender has no dip on the race.
This statement makes clear how an investor bubble is created and will explode. The risk capital than is hedged away and the lending objects are zero cause the token behind is crashed or can't fetch up with the value explosion. Both ways end in trouble for the lender. Because if the lending platform not liquid the return of the stables for the lending is obsolete and the cryptos have gone for good.