An Interest Rates Primer for Cryptocurrency Folks
I’ve banged on a little bit on Twitter about how digital asset markets are continually recapitulating discoveries from fiat markets (securitization, credit-default swaps, corporate actions oh wait no disregard that). But aside from an effort by Genesis Trading, there’s been a surprising lack of interest or development in crypto interest rate markets.
From what I’ve heard (and @ me if I’m wrong), crypto lending markets are not big. You can borrow bitcoin and other major cryptocurrencies for shorting or market-making purposes, but the rates are stiff (8-10% on cash-collateralised loans) and volumes are small.