
Crypto Cope with Cobie & Ledger
UpOnly: Chats with Crypto Experts
How to Scale a Liquid Book to a Big Book Size?
Leveridge: I think there's a reasonable chance that they were doing sketchy stuff via leveridge earlier. They definitely made a fortune on the consistent g b t c arbitrage when there was a premium. And i think where they could have got in trouble is that they overstated their collateral for getting the leverage to perform that premium at significant scale, which allowed them to scale to a size that then was real. But they did unethical things to get there, like that. That's my speculation, right? Let's say you've got 50 million dollars to make that arbitrage play,. Then you're cycling 500 million through that arb using your profits as they roll in six months
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