2nd November 2021 > > Lending stablecoins part 2.

tl;dr

Lending stablecoins is of no interest to me.

Market Snap

Market Wrap

We are in a period of remarkably low volatility, which can only be a good thing.

Occasional Series – The CCC has its first Editor-in-Chief

Me old mucker Jools has put himself forward for this role, without even being asked!

From the bottom of my heart, thank you Julian.

(Apparently, you don’t work Mondays????)

Occasional Series – House theft

You may have heard of the Reverend who whilst away working in Wales received a message from his neighbour in Luton that his house was occupied.

He later found out that someone had stolen his identity and sold his house to an unsuspecting third party.

The law as it stands – in stark contrast to the situation where someone buys a stolen car – means that the house transfer is valid, and he cannot get it back. He may be due compensation.

This is not a one-off event.

If you are fortunate enough to own a property you can set up a monitoring alert for free here:

https://propertyalert.landregistry.gov.uk

You will be contacted by email if there are any attempts to make changes to the Land Registry for the properties that you ask to be monitored.

Do it today, before you forget. I know I would be gutted if I lost my house.

Curious Cryptos’ Commentary – Quick update on the ETH burn commentary from 31st October

ETH has burnt more coins than issued over the last 7 days.

I do not have to spell out what it would mean if this net negative weekly issuance was repeated on an ongoing basis.

Curious Cryptos’ Commentary – Follow up to lending stablecoins from yesterday’s CCC

I received a request through one of the CCC distribution channels as a direct response to my initial comments on lending stablecoins as outlined in yesterday’s CCC.

This request was specifically for my thoughts on Nexo, a platform that co-incidentally had been raised a day earlier in a different distribution channel for the CCC.

Armed with my hastily scribbled checklist (as quoted in yesterday’s CCC) I set about trying to answer the questions I had set for myself if I was to go down the route of lending stablecoins.

It is true that I could get some way to answering some of the questions. But that took up a large part of my day yesterday, time that I will never get back (it is all your fault JP).

I couldn’t get anywhere near answering all those questions – and I would have had more in any case, cos I am awkward like that – in any reasonable timeframe that involved me not dying.

…

I admit I had never looked in detail into the potential opportunities offered by lending stablecoins before this.

I had set for myself (based on nothing more than blind prejudice) a minimum threshold of 50% per annum returns before even considering the idea.

After doing the work yesterday, taken on in the hope of benefitting the CCC community, it seems I was wrong (that is twice now in living memory) in setting the bar at the seemingly high rate of 50%.

I now know that I wouldn’t give the time of the day to the idea of lending stablecoins unless there was more than 100% per annum on offer.

…

That is my personal assessment of the risk/reward ratio for me.

Everyone else will come to a different conclusion and a different assessment of the risk/reward ratio that works for them.