Zac Prince (BlockFi) on Navigating Through the Storm (EP.329)
On The Brink with Castle Island
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Market Makers, Liquidity Is the Fuel to Your Business
The institutional demand to borrow in this market is actually highly elevated. A let's say you had a hundred million dollars o borrowing that you had done two months ago, while those other three linders pulled back,. That probably went from a hundred down to forty. So call it roughly a 60 % decrease. This ball park numbers in liquidity that's available to you as a market maker. And so what that means is that the two lenders remaining in this example, are able to charge more at a time where the opportunities for market makers to make money have increased.
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