DeFi

∆ Open source yield (OSY): Know where the revenue comes from. Much of what has survived and thrived is open source with many builders creating on top of it.

With OSY you can understand the advantages/risks to make good decisions. As a new cycle begins it's important to move slowly, smartly, and be okay missing out in order to find what is important in the long-term.

In the 2017-2018 crypto market cycle if you focused on solid long-term projects a few may have done well. You avoided the scams presenting as initial coin offerings (ICOs) because they were completely separated from the legitimate projects.

In the 2021-2022 cycle many of the legitimate companies were dependent on a few sources that turned out to be scams presenting as yield. This is why people who've been through a few cycles were shocked because many projects were completely dependent on each other.

Venice.ai is a generative AI app powered by leading open-source AI models, enabling anyone, anywhere, access private and censorship-free generative AI.

Account about nothing | Researcher of @safe ❇️ and open source tech

Has anyone used Robinhood's (RH) stock lending (SL) product and observed the APR received? Are there other companies offering stock lending products?

RH's SL provides shared revenue paid by those borrowing the loaned assets to use for things like high risk/reward trading options contracts.

There is an opportunity to grow SL with DeFi and tokenized securities once large organizations realize the opportunity size and regulators decide to start working with the tech industry.

https://robinhood.com/us/en/support/articles/stock-lending/

https://warpcast.com/adamhurwitz.eth/0x8ce8bec9

finance

Fidelity Investments has their own asset lending program called the Fully Paid Lending Program (FPLP). Fidelity's statement on collateralization provides more confidence than Robinhood's statement.

Fidelity says the loans are collateralized whereas Robinhood says they "aim" to have loans that are collateralized.

Fidelity
> The collateral will be equal to at least 100% of the value of the shares on loan.

Robinhood
> ...we aim to hold cash equal to a minimum of 100% of the value of your loaned stocks at a third-party bank.
> In some circumstances, the collateral held on your behalf may not equal or exceed the value of loaned securities.

https://www.fidelity.com/trading/fully-paid-lending

https://warpcast.com/adamhurwitz.eth/0x4b5e6d15

I'm realizing every major brokerage has an asset lending program that is overcollateralized with cash. 

- Charles Schwab: https://www.schwab.com/securities-lending
- E*Trade: https://us.etrade.com/what-we-offer/our-accounts/fully-paid-lending

https://warpcast.com/adamhurwitz.eth/0xd3870e66

I learned from Schwab that these stock lending programs only apply to small and midsize stocks.

Larger stocks tend to not have an oversupply of people who want to short it (Agree to buy at a lower price) that creates the need to borrow the stock.

https://warpcast.com/adamhurwitz.eth/0x82e4237c