If you want social change you have to speak the language Wall St. understands. Because thats where the power is. Perfectly legal, you will break a gentelman’s agreement when shorting the Dallor and thats exactly why the Liquity protocol gets attacked right now.

1.) Learn to master a DeFi protocoll and manage a trove. Gravita on Arbitrum for beginners. Look for the debt-in-front vs. total-minted ratio and keep the ratio @ ~ 50% so you dont get redeemed.

2.) Take out a Dallor dominated loan against ETH, buy more ETH with the loan - thats your short position.

3.) You’ll pay 0% interest for a life time.

4.) To spend your loan use XMR.

BTW, thats what the super rich are doing, a strategy called buy-borrow-die. Correctamundo, the rich are short on fiat thereby profiting from inflation. Now you can do it, too, and you’ll pay no taxes - legally.

If enough people are doing this it will have a psychological effect - and eventually a panic will ensue, because this racket (legacy system) is built on a house of cards. This is what we want to speed up things when the alternative system is ready to use. We are not there quite yet.

  • BlakeEnglish
    2·
    5 months ago

    I see you’re reposting so i’ll bite.

    What do you think of this strategem by Arthur Hayes (https://cryptohayes.substack.com/p/etf-wif-hat)

    Basically how to game ETFs as collateral to buy crypto

    It is harder and more expensive to borrow fiat with Bitcoin collateral. TradFi is very used to lending against liquid ETFs. Getting competitively priced fiat loans in large size will now be possible as long as you pledge Bitcoin ETF shares. The problem for those who believe in financial freedom is maintaining control of one’s Bitcoin and taking advantage of this cheaper capital.

    The solution to this problem is a Bitcoin for ETF swap. Here is how it will work.

    APs who can borrow in the interbank market will create ETF shares and hedge out the Bitcoin/USD price risk. This is the create-to-lend business. In delta-one speak, it’s the repo value of the ETF shares.

    Here is the flow:

    Borrow USD in the interbank market and cash created shares of the ETF

    Sell an ATM [at-the-money] call and buy an ATM put on the ETF to create a short synthetic forward.

    The act of creating ETF units creates positive carry as the Forward Basis > Interbank USD Rate.

    Lend out ETF shares in exchange for Bitcoin collateral.

    • hfondmanagerOPMEnglish
      3·
      5 months ago

      Your welcome. Sadly, I have to agree with everything the guy says:

      “To really get the ETF casino going, we need leveraged derivatives.” [ thats what they are after ] "We are in the early stages of this shift into a period of persistent global inflation. "

      The point is that these strategies are not accessable to the unwashed masses as Wall St. calls retailers. ETFs are not meant to buy real BTC for retailers.

      “Lend out ETF shares in exchange for Bitcoin collateral.” This is a hedged (leveraged) long position with the goal to own BTC at the expense of retailers when prices fall, if I understand correctly. Moreover spreads will be produced and arbitrage collected. (I am not into options trading but my basic analysis is influenced by a book on option strategies). [1]

      Wall St. sees BTC and ETH as a commodity much like gold. Who owns the biggest market share controls price movements and eventually the price itself - backed up by brute force if needed. Moreover the owners will have first knowlege (insider info) to profit. These are returns aka a form of interest on the leveraged position much like with fiat - it doesn’t matter if BTC price is manipulated up or down, as he explains. The big boyz will collect tribute either way with mixed long/short derivatives.

      My take? They will succeed. BTC mining will loose profitability and as they see it, this is an opportunity to own mining as well. It will be key to provide low (zero) interest loans to the masses. Smart contracts (ETH) are another ballpark, especially if private in the future. It will be much harder to own that.

      [1] The Volatility Edge in Options Trading New Technical Strategies for Investing in Unstable Markets by Jeff Augen (z-lib.org)

      .

      ps. To introduce myself: I am still a programmer and dsp professional for embedded systems. Although trading and wizard watching is part of my job now. You should take my nick with a grain of salt.